Tata Motors is expected to post marginal PAT at consolidated level in Q3 due to an improved mix at JLR and softening input costs in the standalone business, said HDFC Securities.
"For TTMT domestic CVs, we expect the margin to improve by 50bps QoQ. At JLR, volumes have improved just 5.7% QoQ to 79.6k units due to continued supply constraints and COVID impact in China. However, the JLR mix is favourable as sales of higher end RR-RR Sport have doubled QoQ. Overall, we expect JLR’s margin to improve 130bps QoQ to 11.6%, led by an improved mix," said brokerage HDFC securities in its report.
It expects revenue to grow by 16.6 per cent year-on-year (YoY) and 5.8 per cent quarter-on-quarter (QoQ) to ₹8,42,019 and profit after tax (PAT) at ₹267 crore.
It expects total domestic sales to be at 2,23,001 units, up by 17.7 per cent QoQ.
Sharekhan expects consolidated revenue of Tata Motors to grow by 12.5 per cent QoQ to ₹80,927 crore, led by 21 per cent increase in JLR revenues (in Pound terms), partially offset by 2 per cent decline in standalone business.
The standalone revenue is expected at ₹82,955 crore, up 15 per cent YoY and 4 per cent QoQ.
"Consolidated Ebitda margin could improve 630 bps QoQ to 9.7 per cent on the back of operating leverage benefits, and benefit of fall in key raw material prices. We expect JLR Ebita margin to improve 510 bps QoQ to 11.3 per cent, led by improved product mix, operating leverage benefits, and cost optimisation," the brokerage said.
Standalone Ebitda margin is seen at 9.8 per cent, according to brokerage report by Sharekhan.
Moreover, standalone net profit is expected at ₹7,966.4 crore by Sharekhan. However, it expects a consolidated net loss of Rs324 crore in Q3FY23.
The company's scrip ended 3.34 per cent higher at ₹422.10 on BSE.
