Tata Motors Q3FY22 Preview: Standalone revenue seen at Rs205,793 million, Consolidated revenue at Rs742,109 million

31 Jan 2022 , 11:01 AM

Result date: 31st January, 2022
Recommendation: Buy
Target price: Rs. 580

Company is likely to post net loss both on a standalone and consolidated basis for Q3. However, standalone loss is likely to reduce on a sequential basis. Weakness in sales of Jaguar Land Rover (JLR) is likely to pull down consolidated performance of the company. Rising input cost inflation is another pressure point and will impact profitability as price hikes seem inadequate. Sharp improvement in sales volumes though is likely to aid revenue growth of standalone business.

Important management insights to watch out for:

– Impact of 3rd wave of COVID
– Outlook on input costs, price hikes
– Update on chip availability

Standalone expectations

Rs. Million	December 2021 estimates	YoY change	QoQ change
Volume	199,636	26.2%	16.6%
Revenue	205,793	40.7%	11.6%
EBITDA	9,593	12.9%	52.7%
EBITDA Margin	4.7%	(115 bps)	125 bps
PAT	(4,028)	NM	NM

Source: Company, IIFL Research

Consolidated expectations

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	742,109	(1.9%)	20.9%
EBITDA	69,841	(39.3%)	72.5%
EBITDA Margin	9.4%	(580 bps)	281 bps
PAT	(6,408)	(123.7%)	NM

Source: Company, IIFL Research