Tata Motors India Limited is expected to report a strong consolidated quarterly performance on the back of improved margins and robust sales at its luxury car unit Jaguar and Land Rover (JLR) when the Indian automaker comes out with its June quarter numbers on July 25.
The first quarter net profit is seen at Rs 2,546 crore, according to the average of the estimates of five brokers. The Tata group company reported a loss of Rs 5,731 crore in the same quarter of the previous year.
"We expect TML to benefit from all its business verticals – JLR, CVs, and PVs. H2FY24 is expected to be strong as compared to H1FY24, aided by volume growth and better operational efficiencies aided by aggressive product launches, market positioning, product differentiation, cost savings, and investments in R&D," broking firm Sharekhan by BNP Paribas said in its auto review.
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Revenue is expected to jump 40 percent year-on-year, led by strong numbers at JLR, the company's British subsidiary.
The JLR vertical is expected to report a healthy volume growth of about 30 percent annually, Nomura Equities said. Retail sales are seen coming at 1,02,000, up 29 percent year-on-year. The order book stood at 1,85,000(down from 2,00,000 in March 2023), with 76 percent coming from key models like Range Rover (RR), RR Sport and Defender.
Consolidated earnings before, interest, tax, depreciation, and amortization (EBITDA) are likely to expand by about 408 basis points year-on-year on superior sales mix at JLR and a higher mix of utility vehicles (UV) in the India passenger vehicle (PV) business, partially offset by lower commercial vehicles (CV) vertical.
One basis point is one-hundredth of a percentage point.
Nomura expects a V-shaped recovery in global demand, driven by pent-up demand. "We expect JLR to focus on profitable products rather than on push volumes and also to focus less on loss-making internal combustion engine (ICE) Jaguar."
IIFL foresees improved realisations in both JLR as well as domestic businesses. For JLR, the share of RR + RR Sport and Defender is seen steady at 64 percent.
On July 24, the stock ended at Rs 630 on the National Stock Exchange, up 0.68 percent from the previous close.
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