Tata Motors Q1 results preview: Net profit seen at ₹2,600 crore, JLR margins could expand

livemint.com:

Tata Motors is likely to report strong financial performance in the quarter ended June 2023 led by improving margins and healthy sales in its luxury arm Jaguar and Land Rover (JLR).  Tata Motors Q1 net profit is expected to be at ₹2,600 crore as compared to a loss of ₹5,731 crore in the same quarter of the previous year, as per average analysts estimates. The company’s consolidated revenue in Q1FY24 is expected to see a growth of around 43% to ₹1,03,284 crore driven by strength in JLR.

Tata Motors’ PV division witnessed 8% YoY volume growth during the quarter.  The luxury car maker JLR is expected to see healthy volume growth of 30% YoY due to improved production levels, easing chip shortages and continued traction toward new models. The domestic passenger vehicle (PV) industry’s volumes grew by around 8% YoY in Q1FY24 amid ramp-up in production and continuing interest in SUVs.

Also Read: Q1 results today: LT, Suzlon Energy, Tata Motors to Bajaj Auto — 40 companies to declare Q1 results 2023 Consolidated earnings before, interest, tax, depreciation, and amortization (EBITDA) in Q1 is seen rising to ₹11,137 crore. Emkay Global expects EBITDA margin to drop by 90 bps QoQ to 11.2%, largely due to adverse mix and lower volumes in standalone (India CV) operations.

“Revenue is likely to grow YoY due to strong growth in JLR and PV divisions. EBITDA margin is expected to decline on a QoQ basis, largely led by adverse mix and lower volumes in the standalone (CV) business vertical," the brokerage house said.