Tata Motors Q1 Preview: JLR sales, CV recovery may boost sales, profitability

The Tata Motors stock has risen over 50 percent this year and over 101 percent in 2023

India's largest electric vehicle manufacturer Tata Motors Limited is set to release its earnings report for the first fiscal quarter of FY25 on August 1. An increase in JLR volumes is expected to push the company's sales growth to double-digits.

According to a Moneycontrol poll, the Nexon maker is anticipated to record a 6.3 percent year-on-year increase in revenue, reaching Rs 1,08,767 crore. Net profit is projected to surge 32 percent to Rs 5,149 crore from Rs 3,878 crore in the same quarter of the previous fiscal year.

What factors are driving Tata Motors' earnings?

Robust JLR Performance: JLR's volumes (excluding the China JV) are expected to grow 9 percent year-over-year, driven by strong demand for the Range Rover, Range Rover Sport, and Defender models. "Furthermore, a 2-3 percent on-year increase in average selling price (ASPs) due to price hikes taken over the last year will likely bode well for the company.

Recovery in India CV: The CV business is expected to increase 2 percent. Furthermore, the EBITDA margin to expand on better pricing and cost reduction efforts. The demand for CVs is expected to pick up in 2HFY25 with the festive season and higher government spending expected post the general election.

What to look out for in the quarterly show?

The key things to watch out for is JLR and India's CV demand outlook. Not just that, the company's SUV segment trails Maruti and M&M, and guidance on the growth will also be essential for the company in the coming quarters.

Tata Motors has entered the top ten most valued global automotive firms, the first Indian company to do so, thanks to a continued stock surge.

The Tata Motors stock has risen over 50 percent this year and over 101 percent in 2023, with a market cap of $51 billion, the highest among Indian auto companies.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.