Tata Motors Q2 preview: Rs 1,200-1,600 crore loss likely

NEW DELHI: Tata Motors is likely to report Rs 1,200-1,600 crore loss for the September quarter. Analysts said while JLR business may show some improvement, domestic business numbers may prove a drag. The demand outlook for JLR’s key markets and update on its cost-cutting initiatives will be keenly tracked when the Tata Group firm declares its quarterly numbers on Friday.Edelweiss Securities sees adjusted losses at Rs 1,221.17 crore. The brokerage expects revenues to fall 4.3 per cent YoY to Rs 69,038.60 crore from Rs 72,112.10 crore in the same quarter last year.“We expect consolidated revenue to fall 4.3 per cent YoY due to weakness in the India business primarily. We expect consolidated operating margin to improve sequentially by 220 bps to 7.1 per cent. This is driven largely due to improvement in JLR, as its performance in China starts to improve,” it said.KR Choksey Institutional Research sees losses at Rs 1,642.10 crore. It sees sales falling 11 per cent to Rs 63,974.60 crore. “It is evident that China is on its revival trajectory. We would like to remain positive over the JLR commentary and its business going forward,” it said.Motial Oswal Institutional Equities expects the auto major to report loss at Rs 1,480 crore on 12.3 per cent YoY drop in consolidated net sales. This is against Rs 3,600 crore loss in June quarter and Rs 5,600 loss in the year-ago quarter.“We expect JLR’s (including JV) volume to increase 3.2 per cent. Net realization is also expected to increase by 3.2 per cent YoY. JLR’s Ebitda margin would shrink by 140 basis points YoY to 7.7 per cent,” it said.

from Economic Times https://ift.tt/2NaAZRl