Tata Motors Q1 preview: Losses could widen on fall in volumes
On the JLR front, Kotak expects volumes to decline by 27 percent YoY to 76,500 units in Q1FY21 and revenues to decline by 31 percent YoY
July 31, 2020 / 08:31 AM IST
Tata Motors on July 31 is likely to post consolidated loss of over Rs 9,000 crore for the quarter ended June 2020 dented by lower volumes in standalone as well as Jaguar Land Rover businesses following lockdown in several countries to control the spread of COVID-19.
The loss could be higher than Rs 3,476.6 crore loss reported in the June quarter last year and Rs 5,411.2 crore loss in the March 2020 quarter.
Revenue from operations for the quarter could see decline in the range of 40-60 percent YoY due to fall in volumes as well as realisation.
Kotak Institutional Equities expects standalone revenues to decline by 84 percent YoY led by (1) 82 percent YoY decline in volumes across segments to 25,000 units and (2) 11 percent YoY decline in average selling prices (ASPs) due to an inferior product mix (higher mix of lower tonnage CVs) in Q1FY21. Net loss according to the brokerage could be Rs 9,400 crore for the quarter.
According to Emkay Global, consolidated revenues are expected to decline 51 percent YoY due to a 47 percent and 81 percent fall in JLR and standalone revenues respectively.
On the JLR front, Kotak expects JLR volumes to decline by 27 percent YoY to 76,500 units in Q1FY21 and revenues to decline by 31 percent YoY led by (1) fall in volumes and (2) 7 percent YoY decline in ASPs in Q1FY21.
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At operating level, consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) loss could be in the range of Rs 2,600-3,000 crore and margin could be negative 5-8 percent for the quarter due to negative operating leverage and lower volumes.