Q1FY23 Preview: Tata Motors: Revenue seen at Rs709,233 million, Net loss at Rs20,695 million

26 Jul 2022 , 08:52 AM

Result date: 27^th July, 2022
Recommendation: Buy
Target price: Rs550
 
It is likely to be a mixed performance for Tata Motors during the June 2022 quarter. Company has seen healthy traction in its India business with strong growth in passenger vehicles and commercial vehicles. Domestic business volumes have surged 102% over the year-ago quarter partly due to a low base effect. Sequentially, though, volumes are down 5%. Volumes of JLR remained weak owing to chip shortages. Consolidated revenue could grow 6.8% over the year-ago quarter and decline 9.6% sequentially.

EBITDA margin could come in at 8.7%, up 79 basis points over the year-ago quarter and down 244 basis points sequentially. Price hikes are the key margin tailwinds while rising input costs and negative operating leverage are prominent headwinds.

On a consolidated as well as standalone basis, Tata Motors is likely to post net loss during the quarter.

Important management insights to watch out for:
·         Demand trends across domestic and international markets
·         Commentary on availability of chips
·         Outlook on return to profitability

Rs. Million	June 2022 estimates	YoY change	QoQ change
Revenue	709,233	6.8%	(9.6)%
EBITDA	61,752	17.5%	(29.4)%
Profit After Tax	(20,695)	NM	(1580.8)%

Source: IIFL Research
NM: Not Matchable