Tata Motor Q1 2023 Earnings: Stay tuned for the live earnings call and real-time transcript

Tata Motors is likely to report strong financial performance in the quarter ended June 2023 led by improving margins and healthy sales in its luxury arm Jaguar and Land Rover (JLR). The company’s Q1 net profit is expected to be at ₹2,600 crore as compared to a loss of ₹5,731 crore in the same quarter of the previous year, as per average analysts estimates. The company’s consolidated revenue in Q1FY24 is expected to see a growth of around 43% to ₹1,03,284 crore driven by strength in JLR. Tata Motors’ PV division witnessed 8% YoY volume growth during the quarter.

Listen to Tata Motor’s Q1 earnings call live and check real-time transcript

The luxury car maker JLR is expected to see healthy volume growth of 30% YoY due to improved production levels, easing chip shortages and continued traction toward new models. The domestic passenger vehicle (PV) industry’s volumes grew by around 8% YoY in Q1FY24 amid ramp-up in production and continuing interest in SUVs.

Emkay Global expects EBITDA margin to drop by 90 bps QoQ to 11.2%, largely due to adverse mix and lower volumes in standalone (India CV) operations. “Revenue is likely to grow YoY due to strong growth in JLR and PV divisions. EBITDA margin is expected to decline on a QoQ basis, largely led by adverse mix and lower volumes in the standalone (CV) business vertical,” the brokerage house said.

“Tata Motors’ India business performance was a mixed bag as CV volumes declined 15% YoY, due to the impact of pre-buy in Q4FY23 while PV grew 8% YoY. However, led by lower raw material costs, cost control, and operating leverage (in PVs), EBIT margin for CV/PV is likely to expand 90 bps/190 bps YoY in Q1FY24,” said domestic brokerage house Motilal Oswal Financial Services.

The brokerage firm raised EPS estimates for FY24 and FY25 by 8.7% and 11.6%, respectively, driven by 9% and 11% upgrades in JLR and better visibility for Indian business. Tata Motors share price has witnessed a sharp rally this year. The stock has gained 64% YTD, while it has jumped nearly 35% in three months.