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Tata Motors in focus ahead of Q3 results

Analysts expect the company's EBITDA margins to expand more than 150bp yoy largely driven by superior product and geography mix at JLR.

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SI Reporter Mumbai
Last Updated : Feb 10 2014 | 1:57 PM IST
Tata Motors is trading higher by 2% at Rs 367 in otherwise subdued market in noon deals trade ahead of its third quarter (October-December) results today.

The stock opened at Rs 365 and touched a low of Rs 364 so far on the BSE. A combined 3.78 million shares changed hands on the counter till 1350 hours on the BSE and NSE.

Analysts on an average has expect Tata Motors is likely to report more than 100% year-on-year (YoY) growth in consolidated net profit at Rs 3,444 crore for the quarter ended December 31, 2013 (Q3), on the back of strong show from its UK-based arm Jaguar Land Rover (JLR). The auto major had profit of Rs 1,627 crore in the same quarter year ago.

We expect the company’s EBITDA or operating profit margins to expand around 160bp yoy to 13.8%, largely driven by superior product and geography mix at JLR and also due to favorable currency movement, says analyst at Angel Broking in a client note.

We expect EBITDA margins for Tata Motors to improve by 270 bps YoY at 15.0%. Profits are likely to rise 106% YoY, says analyst at Bank of America Merrill Lynch.

EBITDA margin to improve 220bp YoY on higher volumes and stronger mix. Expect consolidated net profit to rise 89% YoY led by strong JLR performance, translation gains, partially offset by higher standalone loss, analyst at Motilal Oswal in results preview.

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First Published: Feb 10 2014 | 1:52 PM IST

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