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Q4FY22 Preview: Tata Motors: Revenues seen at Rs784,930 million, Net loss at Rs12,134 million

Weak performance likely by the company

May 11, 2022 9:19 IST | India Infoline News Service
Result date: 12th May, 2022
Recommendation: Buy
Target price: Rs580

Tata Motors’ consolidated revenue for the March 2022 quarter is expected to fall 11.4% over the year-ago quarter amid weakness in the JLR volumes. Standalone revenue though could grow 32% over the year-ago quarter, fueled by sharp 27% jump in volumes.

The company’s profitability is likely to remain weak across both JLR and domestic business. Margins are likely to be impacted by weak product mix, higher expenses towards launch of new models and rising input costs. Price hikes and improving operating leverage could provide some support to margins.

The company could post a net loss for both standalone and consolidated businesses. Standalone losses though could reduce on a sequential basis.

Important management insights to watch out for:
·         Outlook on demand across all segments and markets
·         Plan to improve profitability
 
STANDALONE
Rs Million March 2022 estimates YoY change QoQ change
Revenue 264,781 32.1% 26.3%
EBITDA 13,862 0.1% 109.2%
EBITDA margin 5.2% (167) bps 207 bps
Profit After Tax (972) (180.1)% NM
Source: IIFL Research

CONSOLIDATED
Rs Million March 2022 estimates YoY change QoQ change
Revenue 784,930 (11.4)% 8.7%
EBITDA 64,816 (49.1)% (4.2)%
EBITDA margin 8.3% (612) bps (111) bps
Profit After Tax (12,134) (123.7)% NM
Source: IIFL Research

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