Tata Motors is trading lower by 2.3% at Rs 298 ahead of the third quarter results which are due later in the day today.
Last month, the company’s highly profitable UK-based subsidiary, Jaguar Land Rover (JLR), said that EBITDA (earnings before interest, taxes, depreciation, and amortization) for December quarter (Q3) is likely to be slightly lower than in the previous two quarters. JLR accounts for about 90% of the company’s total profits.
“Tata Motors’s consolidated net profit are expected to fall around 16% year-on-year (yoy) to Rs 2,865 crore mainly due to adverse product-mix at JLR and domestic operations coupled with unfavorable currency movement,” analyst at Angel Broking said in results preview.
Analyst expect consolidated EBITDA margins to contract 225 bps yoy to 12.8% led by weak standalone operating performance and high base effect at JLR.
“Nonetheless driven by JLR, Tata Motor’s consolidated revenue is expected to register a healthy growth of around 8% yoy to Rs 48,794 crore,” he added.
The stock opened at Rs 305 and hit a low of Rs 297 on NSE. A combined 2.46 million shares have changed hands on the counter in early noon deals on NSE and BSE.
Last month, the company’s highly profitable UK-based subsidiary, Jaguar Land Rover (JLR), said that EBITDA (earnings before interest, taxes, depreciation, and amortization) for December quarter (Q3) is likely to be slightly lower than in the previous two quarters. JLR accounts for about 90% of the company’s total profits.
“Tata Motors’s consolidated net profit are expected to fall around 16% year-on-year (yoy) to Rs 2,865 crore mainly due to adverse product-mix at JLR and domestic operations coupled with unfavorable currency movement,” analyst at Angel Broking said in results preview.
Analyst expect consolidated EBITDA margins to contract 225 bps yoy to 12.8% led by weak standalone operating performance and high base effect at JLR.
“Nonetheless driven by JLR, Tata Motor’s consolidated revenue is expected to register a healthy growth of around 8% yoy to Rs 48,794 crore,” he added.
The stock opened at Rs 305 and hit a low of Rs 297 on NSE. A combined 2.46 million shares have changed hands on the counter in early noon deals on NSE and BSE.
