Tata Motors shares fall ahead of Q2 results; here’s earnings preview
Tata Motors Expected to Report 25-42% YoY Profit Growth; Focus on Inventory and Festive Demand Outlook
Tata Motors Ltd, owner of JLR, expects a 25-42% YoY rise in net profit for the September quarter, with flat sales. Key factors include PV inventory and festive demand.
PL Capital expects EBITDA to rise 8.2% to Rs 14,845 crore, with margin expanding 67 basis points to 13.7%.
PL Capital noted supply chain constraints may partially offset by lower penetration of the Jaguar portfolio, driving EBITDA margin expansion by 67 bps YoY.
Tata Motors Q2 Profit Forecasts Vary; Analysts Caution on JLR Volume, Inventory Levels, and Festive Demand Outlook
Elara Securities said Tata Motors’ Q2 profit may come in at Rs 5,352 crore, up 42 per cent YoY. It sees 1.1 per cent rise in sales at Rs 1,05,128 crore. Tata Motors’ PV segment saw a sharp improvement in model mix, lifting average selling price (ASP) QoQ, it noted.
Sharekhan sees Q2 profit at Rs 4,807 crore against Rs 3,845 crore YoY, up 25 per cent. It sees sales falling 3.9 per cent YoY to Rs 1,01,070 crore against Rs 1,05,128 crore YoY.
BNP Paribas said lower wholesale volume at JLR may hurt Tata Motors. It sees the potential for negative surprises. The management commentary on high levels of PV inventory, rising discounts and festive demand outlook would be key to watch out for in 2QFY25, it said.
