Revenue estimated at 784,930 million rupees, net loss at 12,134 million rupees

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Result date: 12and May 2022
Recommendation: buy
Target Price: Rs580

Tata Motors’ consolidated revenue for the March 2022 quarter is expected to fall 11.4% from the prior year quarter amid weak JLR volumes. Autonomous revenue, however, could rise 32% from the prior year quarter, fueled by a strong 27% increase in volumes.

The company’s profitability is expected to remain weak for both JLR and the domestic business. Margins are likely to be affected by the weak product mix, increased expenses related to the launch of new models and rising input costs. Price increases and improved operating leverage could provide some support for margins.

The company could post a net loss for stand-alone and consolidated businesses. Autonomous losses could, however, be reduced sequentially.

Important management information to monitor:
Demand outlook across all segments and markets
Profitability improvement plan



AUTONOMOUS









million rupees

March 2022 estimates

Annual change

QoQ change
Revenue 264,781 32.1% 26.3%
EBITDA 13,862 0.1% 109.2%
EBITDA margin 5.2% (167) basis points 207 basis points
Profit after taxes (972) (180.1)% NM

Source: IIFL Research

CONSOLIDATED









million rupees

March 2022 estimates

Annual change

QoQ change
Revenue 784,930 (11.4)% 8.7%
EBITDA 64,816 (49.1)% (4.2)%
EBITDA margin 8.3% (612) basis points (111) basis points
Profit after taxes (12,134) (123.7)% NM

Source: IIFL Research

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