Q3FY23 Preview: Tata Motors: Revenue seen at Rs853,460 million, PAT at Rs1,723 million

  • 24 Jan, 2023 |
  • 10:18 AM
  • Strong improvement in profitability likely

Result date: 25th January, 2023

Recommendation: Buy

Target price: Rs530


The JLR business witnessed volume growth (ex-China JV) of 15% over the year-ago quarter and 6% sequentially. Sales mix remained favorable with share of “RR + RR Sport and Defender” up from 45% to 65% on a sequential basis. Improvement in model mix and operating leverage are key margin tailwinds, while reduction in China share from 17.6% to 14.6% QoQ is a key margin headwind on a sequential basis.

Sales volumes of the domestic business grew 14% over the year-ago quarter, but fell 6% sequentially. Fall in commodity prices and price hikes are prominent margin tailwinds while negative operating leverage is a key margin headwind sequentially.

Analysts at IIFL Securities expect Consolidated revenue of Tata Motors to grow 18% over the year-ago quarter and 7% sequentially.

Consolidated profitability of Tata Motors is likely to be impacted by a one-time impact from MTM of forex debt (GBP appreciation versus USD). Reversal in net loss of both JLR and domestic business could drive consolidated Profit After Tax (PAT) on a year-on-year basis.

Important management insights to watch out for:

  • Demand outlook across key markets and segments
  • Margin outlook along with key levers thereof

December 2022 estimates

YoY change

QoQ change

Revenue (Rs mn)




EBITDA (Rs mn)




EBITDA margin 


81 bps

239 bps

Profit After Tax (Rs mn)




Source: IIFL Research


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