Tata Motors Ltd's Q1FY20 consolidated net loss widens to Rs3,679.7cr yoy: Misses Estimates

The company’s consolidated revenue stood at Rs61,467cr, down 7.8% yoy and 28.9% qoq.

Jul 25, 2019 05:07 IST India Infoline Research Team

Tata Motors Ltd Q1FY20

Consolidated Results Q1FY20: (Rs. in cr)

Q1FY20 YoY (%)
Revenue 61,467 [7.8]
EBITDA 2,857.9 [29.3]
EBITDA Margin (%) 4.6 [141]
Net Loss  3,679.7 -
***EBITDA margin change is bps
Tata Motors Limited (TML) reported a dismal set of numbers, missing the expectations yet again in Q1FY20 at the consolidated level. Consolidated revenue was down 7.8% yoy (down 28.9% qoq) to Rs61,467.0cr, broadly in-line with expectations. This was due to muted demand in India and struggling JLR. The decline in revenue and adverse operating leverage led to 29.3% yoy decline in the consolidated EBITDA to Rs2,857.9cr, ~43% lower than estimates. The EBITDA margin contracted by 141bps yoy to 4.6% against the estimated 8.1%. The company reported a consolidated Loss of Rs3,679.7cr, against a loss of Rs1,862.6cr in Q1FY19; vs. the estimate of Rs1,404cr loss.
Standalone performance
  • Standalone revenue was down 19.9% yoy to Rs13,351.9cr, broadly in-line with the estimate. Due to negative operating leverage, EBITDA declined by 32.0% yoy to Rs775.6cr, and the EBDITA margin contracted by 103bps yoy at 5.8%. The company reported a loss of Rs97.1cr against a profit of Rs1,187.7cr in Q1FY19.
  • In Q1FY20 wholesales (including exports) decreased 22.7% yoy to 136,705 units. In the domestic market, M&HCV trucks fell 30.4% yoy, ILCV trucks grew 2.5% yoy, SCV & pick-ups declined 11.2% yoy and CV Passenger dipped 9.4% yoy. Domestic PV volumes were down 30.1% yoy.
Jaguar Land Rover (JLR)
  • Retail (incl CJLR) was down 11.6% yoy to 1,28,615 units and wholesale (incl CJLR) was down 9.9% yoy to 118,550 in Q1FY20.
  • JLR reported a revenue of GBP5.1bn (down 2.8% yoy) and reported a loss of GBP0.4bn.
  • JLR has reiterated that its financial results will improve over the balance of the year and reiterated its target of 3-4% EBIT margin for the full year with continued investment resulting in negative but improving cash flows.

Technical View:

Tata Motors Ltd ended at Rs. 144.35, down by 6.9 points or 4.56% from its previous closing of Rs. 151.25 on the BSE.
The scrip opened at Rs. 151.70 and touched a high and low of Rs. 152.55 and Rs. 143.75 respectively. A total of 3,64,29,085 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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