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Tata Motors shares trading flat ahead of Q2 earnings; here’s what to expect

Tata Motors shares trading flat ahead of Q2 earnings; here’s what to expect

Tata Motors share price today: Tata Motors stock rose 0.52 per cent to Rs 443.5 on BSE. The share opened almost flat at Rs 437.20 against the previous close of Rs 434.90

Tata Motors is likely to report a strong set of results with brokerage Sharekhan expecting Q2 profit at Rs 324 crore against a loss of Rs 4,441.6 crore in the year-ago quarter Tata Motors is likely to report a strong set of results with brokerage Sharekhan expecting Q2 profit at Rs 324 crore against a loss of Rs 4,441.6 crore in the year-ago quarter

Shares of Tata Motors were trading flat ahead of the firm's Q2 earnings today.  The Tata Group’s auto arm is likely to report a strong set of results with brokerage Sharekhan expecting Q2 profit at Rs 324 crore against a loss of Rs 4,441.6 crore in the year-ago quarter. The large cap stock rose 0.52 per cent to Rs 443.5 on BSE. The share opened almost flat at Rs 437.20 against the previous close of Rs 434.90. Shares of Tata Motors were trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.  

The stock has lost 14.36 per cent in one year and lost 9.5 per cent since the beginning of this year. Market cap of the firm stood at Rs 1.45 lakh crore on BSE.   

Total 2.56 lakh shares changed hands amounting to a turnover of Rs 11.18 crore on BSE.  The share hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 366 on May 12, 2022.  

Sharekhan expects consolidated revenue in Q2 to jump 31.8 per cent YoY (12.5 per cent QoQ) to Rs 80,927 crore against Rs 61,378.80 crore YoY. On a sequential basis, the brokerage sees a 21 per cent rise in JLR revenues in Pound terms), partially offset by a 2 per cent fall in standalone business.  

Consolidated EBITDA margins are expected to rise 630 basis points QoQ to 9.7 per cent (310 bps YoY) on back of operating leverage benefits and benefit of fall in key raw material prices. Sharekhan expects JLR’s EBITDA margin to improve 510 bps QoQ to 11.3 per cent, led by improved product mix, operating leverage benefits, and cost optimisation. 

Kotak Institutional Equities (KIE) expects Tata Motors to report a 31.9 per cent rise in sales to Rs 80,972.4 crore in Q2 against Rs 61,378.8 crore sales in the corresponding quarter of the previous fiscal. The firm is expected to post a profit of Rs 317 crore against a loss of Rs 4,441.6 crore in the year-ago quarter. 

EBITDA is likely to zoom 94.4 per cent to Rs 7872 crore in the last quarter against Rs 4049.9 crore in the corresponding quarter of the previous fiscal. On a quarter-on-quarter basis, EBITDA is likely to rise 147.5 per cent from Rs 3,180 crore in the June quarter.  

“We expect JLR volumes (excluding China JV) to increase by 18% qoq, led by improvement in chip availability. As a result, we expect revenues (ex-China JV) to increase by 21% qoq in 2QFY23. We expect reported EBITDA margin to improve by 510 bps qoq to 11.3% due to operating leverage benefits and favorable geographical mix (higher mix of China) and favourable model mix (higher mix of Land Rover). As a result, we expect JLR EBIT margin to come in at 2.2% in 2QFY23,” KIE said in its earnings preview.  

YES Securities expects Tata Motors to post a loss of Rs 752.7 crore in Q2 of the current fiscal. Revenue is seen rising 1.8 per cent year-on-year to Rs 62,479.7 crore but fall 13.1 per cent on a quarter-on-quarter basis.  

“We expect TTMT's consolidated revenue to de-grow 13% QoQ at Rs 62,480 crore, wherein JLR revenue is expected to remain flat QoQ at GBP4.4 billion. Moreover, consolidated margins are expected to expand 530 bps QoQ at 9.7% while JLR margins are seen contracting to 20 bps QoQ at 6.1%,” YES Securities said in a note. 

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