Result date: 11th November, 2022
Recommendation: Buy
Target price: Rs585
Standalone volumes of Tata Motors grew 42% year-on-year (partly due to the base effect) and 5% sequentially. This, along with price hikes could lead to 50% growth in standalone revenue over the year-ago quarter. Consolidated revenue though could grow at a smaller pace of 24%, after factoring in performance of JLR.
Margin performance is likely to be robust amid falling input prices, improving realizations and operating leverage. High discounts in the commercial vehicles segment though could cap margin gains.
Tata Motors’ results for the September 2022 quarter could have a oneâ€time charge on MTM of forex debt (GBP depreciation versus USD), which could also dent its profitability.
The company could post net loss on a consolidated basis.
Important management insights to watch out for:
-
Demand trends across key markets
-
Outlook on input costs, pricing action, margins
Standalone
|
|
September 2022 estimates |
QoQ change |
YoY change |
|
Volumes |
243,392 |
5.2% |
42.1% |
|
Revenue (Rs mn) |
276,998 |
4.4% |
50.2% |
|
EBITDA (Rs mn) |
17,779 |
26.9% |
182.9% |
|
EBITDA margin |
6.4% |
114 bps |
301 bps |
|
Profit After Tax (Rs mn) |
4,248 |
(1273.7)% |
(169.8)% |
Source: IIFL Research
Consolidated
|
Rs. Million |
September 2022 estimates |
QoQ change |
YoY change |
|
Revenue |
761,881 |
5.9% |
24.1% |
|
EBITDA |
64,600 |
103.1% |
59.5% |
|
EBITDA margin |
8.5% |
406 bps |
188 bps |
|
Profit After Tax |
(7,755) |
(86.5)% |
(82.8)% |
Source: IIFL Research
