Prabhudas Lilladher has come out with its first quarter (April-June) earnings estimates for the automobile sector. The brokerage house expects Tata Motors to report a 43.8 percent degrowth quarter-on-quarter (decline of 17.8 percent year-on-year) in net profit at Rs 2,207 crore.
Revenues are expected to decrease by 18.2 percent Q-o-Q (up 5.8 percent Y-o-Y) to Rs 45,828.6 crore, according to Prabhudas Lilladher.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 23.7 percent Q-o-Q (up 1.6 percent Y-o-Y) to Rs 6,356.4 crore.
EBITDA margin or operating profit margin is likely to be at 13.9 percent in June quarter as against 14.9 percent in March quarter and 14.4 percent in a year ago period.
Prabhudas Lilladher on Tata Motors
On a standalone basis, M&HCV volumes de-grew by 11.2 percent Y-o-Y, whereas the LCV segment grew by 6.7 percent. On account of 18.9 percent Y-o-Y decline in overall volumes and higher discounts in the M&HCV segment, EBITDA margins are likely to be marginal at 2.4 percent.
As a result, we expect a loss of Rs 4.3 billion in the standalone business. JLR volumes improved by 9.7 percent Y-o-Y led by Jaguar which reported a 64 percent Y-o-Y growth in volumes. On account of product mix in favour of the New ‘Range Rover’ and robust Jaguar volumes, we expect margins to expand by 140bps Y-o-Y to 15.9 percent at JLR.
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