Tata Motors may post 5-fold jump in Q3 profit; JLR realisations seen up 5%

Passenger and commercial vehicle maker Tata Motors is expected to report 5-fold jump in its consolidated profit for the quarter ended December 2017 due to JLR numbers and reduced losses in domestic business.

Consolidated profit is seen rising to Rs 3,040 crore for December quarter from Rs 625 crore in year-ago, according to average of estimates of analysts polled by CNBC-TV18.

Revenue from operations may increase 19.4 percent year-on-year to Rs 76,383 crore compared to Rs 63,933 crore, the poll said.

Operating profit is expected to rise 59 percent to Rs 9,964 crore and margin may expand 320 basis points to 13 percent compared to previous year.

The stock is biggest underperformer in auto space, falling 26 percent in the last 12 months.

JLR

UK-based luxury car maker Jaguar Land Rover is expected to report double growth in profit at 308 million pound for the quarter against 152 million pound in year-ago due to operational performance.

Operating profit is seen rising sharply by 38.6 percent year-on-year to 847 million pound and margin may expand 280 basis points to 12.1 percent compared to same quarter last year.

Revenue from operations may increase 7 percent to 6,983 million pound from 6,537 million pound YoY due to single digit volume growth.

JLR performance was subdued during the quarter as sales volumes increased 4.4 percent YoY to 1,59,000 units from 1,52,000 units.

Analysts said share of Range Rover products went down as refreshed models were out from January 2018 and also higher incentives were given to clear off old RR sports inventory.

However, net realisations are expected to rise 4.9 percent YoY to 47,484 pound per unit, led by ramp up of F Pace and rise in share of China volumes.

Analysts expect a hedged forex loss of around 353 million pound to impact Q3 earnings, similar to Q2. China JV income may fall due to one-time rebate to China dealers.

Standalone

Standalone (domestic business) net loss is expected to be at Rs 7 crore for the quarter, down from Rs 1,012 crore in year-ago due to improvement in operational performance and higher revenue post strong commercial volume growth in Q3.

Revenue from operations during the quarter is seen rising 29 percent year-on-year to Rs 17,125 crore and operating profit may jump over 16 times to Rs 1,012 crore from Rs 62 crore.

Standalone volumes increased 29 percent YoY and 11.6 percent QoQ to 1,71,000 units from 1,32,000 units, with commercial vehicle volumes showing an increase of 34.4 percent and passenger vehicles 17.5 percent YoY.