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

11 May 2022 , 09:19 AM

Result date: 12^th 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