Tata Motors Q4 results: Brokerages expect Rs 2,600 cr loss as sales fall amid coronavirus crisis

Tata Motors is scheduled to announce the March quarter results on Monday and brokerages expect the company to post over Rs 2,600 crore loss. Sales may see a substantial negative impact due to the coronavirus crisis and weak performance of Jaguar Land Rover (JLR), the analysts said. Analysts at Kotak Securities expect the loss at Rs 2,667 crore for the quarter. The consolidated revenue is likely to fall 28.5 per cent on-year to Rs 61,803 crore, the domestic brokerage also said.

According to ICICI Securities, the auto major may record Rs 1,985 crore loss for the quarter under review. "We expect Tata Motors to report a consolidated topline of Rs 57,848 crore, down 33 per cent YoY. Ebitda is expected at Rs 4,513 crore with corresponding margins at 7.8 per cent, down 360 basis points QoQ," ICICI Securities also said in a report. In Q4FY19, Tata Motors had reported consolidated profit of Rs 2,215.9 crore and revenue of Rs 86,422 crore.

"COVID-19 has put the brakes on Jaguar Land Rover (JLR) product/market mix improvement, and there would be high uncertainty for JLR volumes, particularly in EU, UK, & US in first half of FY21, although China is making a comeback," said Motilal Oswal in a report.

Global brokerage Nomura sees revenues falling 51 per cent on-year basis, with margin contracting 728 basis points from Q4FY19. "Sales of JLR were hit across all regions, including North America, China and the UK, during the previous financial year," Tata Motors had said in an exchange filing in March.

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