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Tata Motors' consolidated profit after tax may increase 2.85 percent year-on-year to Rs 4,030 crore and revenue is seen rising 3.2 percent to Rs 67,446 crore during January-March quarter, according to a CNBC-TV18 poll.
Analysts are not perturbed about the stock and are still betting on Tata Motors. JP Morgan reiterates overweight stance on it with a target price of Rs 595 per share. The brokerage feels JLR is in the midst of an aggressive product/capacity roll-out program while outlook for the India business is improving.
Tata Motors's third quarter consolidated profit after tax is expected to increase 0.87 percent year-on-year to Rs 4,846 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Reacting to Tata Motors‘ earnings that were released this quarter, ICICI Direct‘s Nishant Vass said revenues were in line while profitability got affected due to forex issues at JLR and the fact that the domestic business continues to suffer.
Its EBITDA is seen growing 22 percent at Rs 10530 crore while operating profit margin (OPM) may have grown 17.2 percent versus 15.2 percent Y-o-Y.
IIFL's auto research analyst Prayesh Jain has downgraded M&M's growth forecast post its poor Q2 numbers.
A Kotak report said net profits of the BSE-30 Index grew 19.3 percent (YoY), marginally ahead of its estimate of 18.2 percent growth, while the EBITDA grew 31 percent (YoY) versus the expectation of 29.5 percent growth.
As the earnings season winds up and most of India‘s notable corporates have posted their quarterly results updates, net profits were slightly ahead of estimates, according to projections by brokerage firm Kotak, but there was “limited evidence of a meaningful upgrades to earningsâ€.
IIFL has upgraded the stock to buy with a target price of Rs 425 and has revised the earnings estimates by around 6-8 percent for JLR operations said Prayesh Jain.
The bottomline of Tata Motors is estimated to double from Rs 1627 crore to Rs 3420 crore in third quarter. The operating profit margins are also expected to improve by 190 basis points to 14.1 percent.
India's largest commercial vehicle manufacturer Tata Motors surprised Dalal Street on every parameter on Friday with the second quarter (July-September) consolidated net profit surging nearly 71 percent year-on-year on Jaguar Land Rover boost.
Profit after tax may increase 26 percent Y-o-Y to GBP 386 million and revenues may jump 39 percent Y-o-Y to GBP 4,603 million in three-month period ended September 2013, led by strong sales.
Sales of Tata Motors are expected to increase by 14.7 percent Q-o-Q (up 23.6 percent Y-o-Y) to Rs 53,657.5 crore, according to Motilal Oswal.
Analysts say JLR's performance in the quarter, especially 16.5 percent margins, was once again positively surprising and expect the strong growth to be maintained if not improved on the back of successful product launches.
Nishant Vass, lead auto analyst, ICICI Securities says, in an interview to CNBC-TV18, that his ‘Buy‘ rating on Tata Motors remains despite the company declaring limp earnings.
Jaguar Land Rover's profit is expected to rise 22 percent year-on-year, while revenue is seen up 8 percent. However, Tata Motors' standalone operations are likely to report a loss of Rs 400 crore, while revenue is seen down 18 percent.
Tata Motors will continue to report sluggish sales growth in the domestic market, which will be offset by Jaguar Land Rover sales growth. Overall, however, the company is likely to report a consolidated net profit decline.
According to Kotak Securities, Tata Motors may report 48.5 percent degrowth quarter-on-quarter (decline of 9.4 percent year-on-year) in net profit at Rs 2,033.3 crore.
Motilal Oswal expects Tata Motors to report a 38.4 percent degrowth quarter-on-quarter (fall of 5.6 percent year-on-year) in net profit at Rs 2420.3 crore.
Prabhudas Lilladher 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.
KR Choksey expects Tata Motors to report a 27 percent degrowth quarter-on-quarter (rise of 30 percent year-on-year) in net profit at Rs 2,921 crore.
Angel Broking expect the Sensex as well as their coverage companies to report a muted revenue performance. The research firm expects Sensex companies to report a 2.4% yoy growth in revenues. For their coverage universe, they expect growth in revenues to come in at 4.1% yoy.
While Tata Motors quarterly numbers were better than what analysts had expected, the stock price is likely to be volatile in the coming months because of fluctuation in profitability across the local and international divisions.
While its British luxury Jaguar Land Rover unit continued to see strong growth, domestic operations remained a drag posting a loss of Rs 312 crore in Jan-March, compared with a profit of Rs 565 crore in the year ago quarter.
Tata Motors Ltd may beat January-March earnings consensus forecast when it reports results later in the day on Wednesday, according to Thomson Reuters StarMine data