Tata Motors Q2 consolidated PAT seen down 8% at Rs 2046 cr

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Tata Motors Q2 consolidated PAT seen down 8% at Rs 2046 cr

Country's largest commercial vehicle maker Tata Motors is expected to report a consolidated profit after tax of Rs 2,046 crore in the second quarter of FY12, a fall of 8% as compared to Rs 2,222 crore in the corresponding quarter of last fiscal.

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Country's largest commercial vehicle maker Tata Motors is expected to report a consolidated profit after tax of Rs 2,046 crore in the second quarter of FY12, a fall of 8% as compared to Rs 2,222 crore in the corresponding quarter of last fiscal.

Consolidated revenues are seen going up 20% to Rs 34,506 crore from Rs 28,782 crore during the same period.

Operating profit margin is expected to be at 12.8% in the July-September quarter of FY12 versus 13.9% in a year ago period.
 
On a standalone basis, company's revenues are likely to go up 9% to Rs 12,520 crore while profit after tax is seen going down 7% to Rs 402 crore year-on-year. Operating profit margin is expected to be at 8.7% versus 9.5%.

Market talk is that Tata Motors is likely to report a profit after tax of Rs 1,650 crore. PAT may be impacted by MTM loss of Rs 400 crore.

Jaguar Land Rover (JLR) is expected to report a 24% rise in revenues at GBP 2.7 billion (approximately Rs 22,000 crore) year-on-year. Profit is expected be at GBP 221 million versus GBP 219 million in Q1FY12.

Volume Growth in Q2
Standalone volumes
-Total volumes down 3% YoY (up 2% QoQ) at 2.01 lakh units versus 2.07 lakh units
-Realizations to improve by 11% YoY (2% QoQ), driven by improvement in product mix
JLR volumes
-Total volumes up 15% YoY (up 2% QoQ) at 63356 versus 55134 units
-Realisations up 8% YoY
 
What to expect in Q2 :
Sales Expectations 
-Consolidated sales to grow 20% driven by JLR performance again (contributes 59% revenues and 76% of profit)
-However, standalone sales would be a drag, up just 9% yoy due to slowdown in domestic business

Margin Expectations
-Rise in raw material cost to impact margin
-High interest cost, low margin to impact profit

Watch out for MTM losses this quarter as TAMO has forex debt of Rs 11,500 crore
-Standalone margins are expected to register decline at 8.7% due to losses in small car business.
-JLR margins would largely be flat QoQ as favourable currency movement counters weaker mix
-Consolidated profit to decline 8% at Rs 2046 crore reflecting 7% decline in standalone operations due to high depreciation expenses.