Tata Motors shares trading flat ahead of Q1 earnings, here's what to expect

Tata Motors stock was trading flat ahead of the firm's Q1 earnings today. The large cap stock rose 0.52 per cent to Rs 443.5 on BSE. The share opened flat at Rs 441.45 against the previous close of Rs 441.05. Shares of Tata Motors were trading higher than 20-day, 50-day and 100-day moving averages but lower than 5-day and 200-day moving averages.

The stock has gained 52.16 per cent in one year but lost 8.11 per cent since the beginning of this year. Market cap of the firm stood at Rs 1.47 lakh crore on BSE.  

Total 2.16 lakh shares changed hands amounting to a turnover of Rs 9.54 crore.

The share hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 268.50 on August 24, 2021.  

Tata Motors is likely to report a 105 per cent year-on-year (YoY) fall in loss to Rs 2,408 crore in the June quarter. For the quarter ended June 2021, Tata Motors reported a loss of Rs 4,450.92 crore, according to YES Securities.

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On a quarter-on-quarter basis, the firm is likely to report a 208 percent fall in loss for June 2022 quarter, the brokerage said.

"We expect Tata Motors consolidated revenue to fall 19 per cent QoQ to Rs 63,530 crore. JLR's revenue is expected to de-grow 7 per cent  QoQ at GBP 4.4b. Moreover, consolidated margins are expected to expand at 13.3 per cent (+120bp QoQ) while JLR margins to contract to 11.6 per cent (-100 bps QoQ)," added YES Securities.

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According to Kotak Institutional Equities, Tata Motors is expected to report a loss of Rs 1,455.1 crore in Q1.

"We expect domestic personal vehicles business to report earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 6.6 per cent  (-20 bps qoq) mainly on account of RM headwinds partly offset by operating leverage benefits," said Kotak Institutional Equities.

Sales are seen rising 11.9 per cent to Rs 74,283 crore in the June quarter against Rs 66,406.5 crore on a YoY basis. EBITDA is likely to rise 33 percent to Rs 6,994.9 crore in the June quarter against Rs 5,257.6 crore on a YoY basis, according to estimates of Kotak Institutional Equities.

"We expect JLR volumes (excluding China JV) to decline by 2 per cent qoq due to supply chain challenges as well as lockdowns in China in 1QFY23. As a result, we expect revenues (ex-China JV) to decline by 2 per cent qoq in 1Q," added Kotak Institutional Equities.

The automaker reported narrowing of net loss to Rs 1,032.84 crore for the quarter ended March 31, 2022 against loss of Rs 7,605.40 crore a year earlier.

Sequentially, the automaker's loss narrowed from Rs 1,516.14 crore in the December quarter (Q3FY22). However, consolidated total revenue from operations fell nearly 11.4 per cent to Rs 78,439.06 crore versus Rs 88,627.90 crore from a year ago.

Tata Motors' consolidated total revenue from operations declined nearly 11.4 per cent to Rs 78,439.06 crore versus Rs 88,627.90 crore from a year ago.

The company's earnings before interest, taxes, depreciation, and amortization or EBIDTA margin for the March quarter came in at 11.2 per cent, down 320 basis points. EBIT margin at 3.2 per cent fell 410 basis points.

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