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Tata Motors Q3FY22 Preview: Standalone revenue seen at Rs205,793 million, Consolidated revenue at Rs742,109 million

Rising input cost inflation is another pressure point and will impact profitability as price hikes seem inadequate.

January 31, 2022 11:01 IST | India Infoline News Service
Result date: 31st January, 2022
Recommendation: Buy
Target price: Rs. 580

Company is likely to post net loss both on a standalone and consolidated basis for Q3. However, standalone loss is likely to reduce on a sequential basis. Weakness in sales of Jaguar Land Rover (JLR) is likely to pull down consolidated performance of the company. Rising input cost inflation is another pressure point and will impact profitability as price hikes seem inadequate. Sharp improvement in sales volumes though is likely to aid revenue growth of standalone business.

Important management insights to watch out for:

• Impact of 3rd wave of COVID
• Outlook on input costs, price hikes
• Update on chip availability

Standalone expectations
Rs. Million December 2021 estimates YoY change QoQ change
Volume 199,636 26.2% 16.6%
Revenue 205,793 40.7% 11.6%
EBITDA 9,593 12.9% 52.7%
EBITDA Margin 4.7% (115 bps) 125 bps
PAT (4,028) NM NM
Source: Company, IIFL Research

Consolidated expectations
Rs. Million December 2021 estimates YoY change QoQ change
Revenue 742,109 (1.9%) 20.9%
EBITDA 69,841 (39.3%) 72.5%
EBITDA Margin 9.4% (580 bps) 281 bps
PAT (6,408) (123.7%) NM

Source: Company, IIFL Research

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