Stock Market

Tata Motors Q4 profit seen up 109%, standalone loss may narrow

Tata Motors ’ fourth quarter consolidated profit is seen rising a whopping 109 percent year-on-year to Rs 3,602 crore, driven by Jaguar Land Rover, according to average of estimates of analysts polled by CNBC-TV18.
Revenue may increase 10 percent to Rs 74,014 crore in Q4, supported by domestic as well as global sales.

Operating profit (EBITDA – earnings before interest, tax, depreciation and amortization) is likely to grow 21 percent to Rs 10,211 crore and margin may expand by 130 basis points compared to year-ago period.

Jaguar Land Rover

JLR’s profit in same period is seen rising 55 percent to 470 million pound and revenue may climb 6.5 percent to 6,208 million pound on yearly basis.

However, operational performance is expected to be weak in January-March quarter as operating profit could fall 6 percent to 954 million pound and margin may contract by 200 basis points to 15.4 percent YoY but sequentially margin may improve by 100 bps.

Total volumes of the luxury car maker improved by 20 percent YoY to 1.55 lakh units led by 6 percent growth in volumes in UK plant and ramp-up in volumes in China JV to 15,000 units.

Average realisations may improve 2.5 percent QoQ led by favorable currency as GBP depreciated against most key demand markets.

Standalone (domestic business)

Tata Motors’ standalone loss may get narrowed significantly to Rs 109 crore from Rs 1,164 crore YoY but revenue is seen rising 17 percent to Rs 12,589 crore in Q4 due to a 19 increase in commercial vehicle segment.

Operating profit may see nearly 5-fold jump at Rs 751 crore during the quarter (against Rs 159 crore) and margin may expand 450 basis points to 6 percent YoY due to operating leverage.

Volumes grew by 5 percent YoY at 1.46 lakh units led by good growth in medium & heavy commercial vehicle segment.