Tata Motors share price fell more than 5 percent on June 16 a day after the company reported losses in the quarter ended March 2020.
The company on June 15 posted a consolidated loss of Rs 9,894.25 crore for the quarter ended March 2020. The consolidated profit for the March quarter FY19 was at Rs 1,117.5 crore and Rs 1,738.3 crore in Q3 FY20.
Consolidated revenue from operations for the quarter stood at Rs 62,492.96 crore, registering a 27.7 percent year-on-year decline, as standalone business fell 48 percent to Rs 9,733 crore and JLR's revenue declined 24 percent to 5,426 million pounds during the quarter YoY.
Also Read - Tata Motors posts Q4 net loss at Rs 9,894.25 crore, JLR loss at 501 million pound
Emkay | Rating: Hold | Target: Raised to Rs 92 from Rs 78
The broking house has reduced consolidated EBITDA estimate for FY21 by 33 percent to Rs 17,100 crore while retaining FY22 consolidated EBITDA forecast at Rs 37,900 crore due to high fixed costs & weak net debt/EBITDA situation, reported CNBC-TV18.
CLSA | Rating: Underperform | Target: Raised to Rs 103 from Rs 85
The lower capex should stabilise the company’s debt, while still needed stake sale/equity infusion, the brokerage said.
The Q4 results were significantly below our and consensus expectations as the JLR & India business showed higher-than-expected margin pressure, said CLSA.
JLR managed to a positive FCF in Q4 while India was negative.
CLSA increased FY21/22 consolidated EBITDA forecasts by 6-10% and valued JLR at Rs 98 per share & India business at Rs 5 per share.
The overall leverage should continue to be elevated. The upside risk is better-than-expected recovery at JLR, while downside risk is higher losses in India PV, it added.
Motilal Oswal | Rating: Buy | Target: Rs 122
Broking house lowered its FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business. As a result, both FY21/FY22 would witness PAT loss.
Tata Motors share ended at Rs 94.75, down Rs 5.70, or 5.67 percent.on the BSE.