Tata Motors Shares Slip As Q1 Results Points To Over-Reliance On JLR

Shares of Tata Motors Ltd. declined on Friday after its first-quarter results indicated an over-reliance on its luxury business for higher operational profitability.

The consolidated net profit of the Nexon maker rose 72.4% year-on-year to Rs 5,692 crore in the three months ended June, on the back of revenue that rose 5.7% to Rs 1,08,048 crore, according to an exchange filing on Thursday. Analysts polled by Bloomberg had estimated the top line at Rs 1,09,228.43 crore and the bottom line at Rs 5,309.96 crore.

• Revenue up 5.7% to Rs 1,08,048 crore (Bloomberg estimate: Rs 1,09,228.43 crore)

• Ebitda up 14.4% to Rs 15,509 crore (Bloomberg estimate: Rs 15,266.08 crore)

• Margin expands 109 basis points to 14.35% (Bloomberg estimate: 14%)

• Net profit up 72.4% to Rs 5,692 crore (Bloomberg estimate: Rs 5,309.96 crore)

One basis point is one-hundredth of a percentage point.

Here’s a look at what brokerages had to say on Tata Motors’ first-quarter Results:

• JLR's transition to luxury will support ASP and margin

• Estimate EBIT margins at 8.5%, 8.5% and 10% for fiscal 2025, 2026 and 2027

• Net debt of Rs 18,600 crore in first quarter increased sequentially from Rs 16,000 crore

• Company to turn to net cash of Rs 145 per share by fiscal 2027

• JLR saw optical beat on EBIT on lower depreciation, Ebitda in-line

• Tata Motors anticipates near-term production issues at JLR (Q2/Q3)

• India PVs slated to outperform led by the new mid-size SUV launch

• India commercial vehicle's Ebitida was better, JLR’s in line, India passenger vehicle was lower

• JLR expects Q2/Q3 to be impacted by aluminium supply issues

• Demand for Tata Motors’ trucks and cars has slowed down

• CV profitability improving, new SUV launch to support volumes