Tata Motors shares are trading flat ahead of Q1 results, here’s what to expect

Shares of Tata Motors were trading flat ahead of the company’s first quarter earnings today. The large-cap stock rose 0.52% to Rs 443.5 on BSE. The stock opened flat at Rs 441.45 against the previous close of Rs 441.05. Shares of Tata Motors were trading above the 20-day, 50-day and 100-day moving averages, but below the 5-day and 200-day moving averages.

The stock has gained 52.16% in one year but has lost 8.11% since the start of this year. The company’s market capitalization stood at Rs 1.47 lakh crore on BSE.

A total of 2.16 lakh shares changed hands, representing a turnover of Rs 9.54 crore.

The stock reached 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% decline in year-on-year (YoY) 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 quarterly basis, the company is expected to post a 208% drop in losses for the June 2022 quarter, the brokerage said.

“We expect Tata Motors’ consolidated revenue to fall 19% QoQ to Rs 63,530 crore. JLR revenue is expected to decline 7% QoQ to £4.4bn (QoQ) while JLR’s margins will contract to 11.6% (-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 the first quarter.

“We expect the domestic personal vehicle business to report earnings before interest, tax, depreciation, and amortization (EBITDA) margin of 6.6% (-20 bps qoq), primarily due to RM headwinds , partially offset by operating leverage benefits,” Kotak Institutional said. Shares.

Sales are expected to increase by 11.9% to Rs 74,283 crore in the June quarter from Rs 66,406.5 crore on an annual basis. EBITDA is expected to rise 33% to Rs 6,994.9 crore in the June quarter from Rs 5,257.6 crore on an annual basis, according to estimates from Kotak Institutional Equities.

“We expect JLR (excluding China JV) volumes to decline 2% QoQ due to supply chain challenges as well as lockdowns in China at 1QFY23. revenues (excluding China JV) 2% qoq in Q1,” added Kotak Institutional Equities.

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

Sequentially, the automaker’s loss decreased by Rs 1,516.14 crore in the December quarter (Q3FY22). However, the total consolidated revenue from operations fell by almost 11.4% to Rs 78,439.06 crore from Rs 88,627.90 crore a year ago.

Total consolidated revenue from Tata Motors operations fell by almost 11.4% to Rs 78,439.06 crore from Rs 88,627.90 crore 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%, down 320 basis points. The EBIT margin at 3.2% fell 410 basis points.

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