Q1FY24 Preview: Tata Motors: Revenue seen at Rs. 1,025,445 million, PAT at Rs. 32,405 million

21 Jul 2023 , 02:07 PM

Result date: 25^th July, 2023

Recommendation: Buy 

Target price: Rs. 595

Tata Motors is likely to post 42.6% growth in its consolidated revenue as compared to the year-ago quarter. Strong sales volume growth at JLR (ex-China JV) of 30% is a key positive, even though decline of 2% in domestic volumes over the year-ago quarter is a bit of a dampener. Realizations are likely to improve in both JLR as well as domestic businesses. In the JLR business, share of “RR + RR Sport and Defender” was steady at 64%.

Back home, lower discounts on trucks could act as key margin tailwind while negative operating leverage could pull margin down.

Overall, the company’s consolidated EBITDA margin could grow 827 basis points over the year-ago quarter to 12.7%.

Important management insights to watch out for:

• Demand trends across product segments, markets
• Pricing actions lined up

Rs. Million	June 2023 estimates	YoY change	QoQ change
Revenue	1,025,445	42.6%	(3.2)%
EBITDA	130,117	309.1%	1.6%
EBITDA margin (%)	12.7%	827 bps	60 bps
Profit After Tax	32,405	(156.5)%	(39.1)%

Source: IIFL Research