Tata Motors may report a loss in June quarter

Mumbai: Homegrown auto major Tata Motors is likely to report a loss in the June quarter, as dwindling demand wreak havoc for the sector both in the domestic as well as in the international markets, say analysts.

ICICI Securities expects the automobile major to report a loss of Rs 2,347.3 crore.

The brokerage expects JLR retail volumes to decline around 19 per cent and revenue of 4.7 billion pounds, down 10 per cent on a yearly basis with adjusted Ebitda margins of 6.3 per cent, up 10 basis points.


On an operational basis, ICICI Securities expects JLR to report a loss of 202 million pounds on a forex loss of 50 million pounds.

The automaker’s standalone business is expected to witness a topline decline of 19 per cent as the firm may post Ebitda margin drop of around 304 basis points to 5.6 per cent.

The key monitorable would be China inventory situation and compliance of China EV norms, demand and discounting trends across JLR’s key markets, outlook on capital expenditure and R&D, ICICI Securities added.

Reliance Securities expects Tata Motors to report Rs 1,300 crore consolidated loss due to disappointing JLR performance.
“Tata Motors (TTML), with higher contribution from JLR, is expected to see sizable financial impact due to highly subdued JLR volume amid slowdown in its key markets coupled with double digit drop in standalone volumes,” Reliance Securities said in a note.

“Notably, its China volume – having higher weightage in profitability – was significantly impacted in 1QFY20 (45% drop),” it added.

According to Kotak Institutional Equities, Tata Motors’ standalone revenues may decline 22 per cent led by fall in volumes across segments.

“We build in standalone EBITDA margin of 4.2 per cent in 1QFY20 (6 per cent in 4QFY19 and 8 per cent in 1QFY19),” Kotak Institutional Equities said in the note.

Motilal Oswal expects Tata Motors to post a loss of Rs 1,183.20 crore.

It expects Tata Motors’ consolidated revenues to decline 15 per cent YoY and 35 per cent QoQ, resulting in a net loss. It expects JLR’s (including joint venture) volume to decline by 15 per cent YoY and 31 per cent QoQ.