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Tata Motors Q4FY23 results preview: Shares of Tata Motors were trading firm in a weak market on Friday ahead of the announcement of the company's March quarter (Q4FY23) result later today. At 9:40 AM, the shares were up 0.45 per cent as against 0.4 per cent dip in the benchmark S&P BSE Sensex..
Tata Motors had reported total sales of 251,822 units in the fourth quarter of FY23, an increase of 3 per cent over the previous year. The domestic sales of medium and heavy commercial vehicles (MH&ICV), including trucks and buses, stood at 54,435 units, compared to 40,391 units in Q4 FY22.
Its wholesale volumes for Jaguar Land Rover, meanwhile, stood at 94,649 units (excluding the Chery Jaguar Land Rover China joint venture), up 24 per cent compared to corresponding quarter last fiscal, and 19 per cent compared to December quarter. The retail sales for the March quarter rose 30 per cent YoY to 102,889 units (including the Chery Jaguar Land Rover China joint venture).
Here's what key brokerages expect from the Q4FY23 results:
Nomura
The foreign brokerage expects Tata Motor's consolidated revenue to jump 34 per cent year-on-year to Rs 1,06,187.7 crore from Rs 79,099.1-crore revenue of Q4FY22 on the back of strong growth across India and JLR business. Sequentially, it would be a 20 per cent hike over Rs 88,488.6 crore.
Operationally, Ebitda is projected to soar 59 per cent YoY/28 per cent QoQ to Rs 14,282.2 crore, while adjusted net profit is expected to surge to Rs 4,584.4 crore. Ebitda margins are seen expanding 213 basis points YoY and 255 bps QoQ to 13.4 per cent.
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ICICI Securities
Similar to Nomura, ICICI Securities sees consolidated revenue at Rs 105,748.4 crore, up 35 per cent YoY and 20 per cent sequentially. Ebitda, however, is seen higher at Rs 14,401.7 crore, and adjusted PAT is estimated at Rs 5,641.4 crore.
Prabhudas Lilladher
The brokerage expects a revenue growth of 23 per cent QoQ, at Rs 108,365.6, helped by strong volumes and higher average selling price (ASP) across segments (JLR, CV and PV). Volume ramp-up at JLR is expected to help revenues, profitability and drive free cash flow (FCF) generation aided by strong order book. Overall volume has grown by 28 per cent QoQ, and Ebitda margin is at 11.6 per cent (up 74bps QoQ).
Ebitda is pegged at Rs 12,865.8 crore by the brokerage, while adjusted net profit is seen at Rs 4,733.3 crore. Profit before tax is estimated to rise from Rs 372.7 crore last year to Rs 4,951.7 crore in Q4FY23.
Emkay Global
The brokerage said JLR's GBP revenue is expected to grow by 53 per cent YoY to 7.3 billion pounds, owing to higher volumes (up 24 per cent), and realizations (up 24 per cent). Ebitda margin will likely expand by 100bps to 13.6 per cent due to better scale. India CV revenue could grow by 18 per cent YoY to Rs 2,050 crore, driven by higher realizations (up 22 per cent). It said realization could improve due to higher MHCV share (47 per cent vs 40 per cent) and price hikes. Ebitda margin to expand by 440bps to 10.8 per cent due to price hike and scale.
India PV revenue is also expected to grow by 7 per cent to Rs 11,300 crore, driven by higher volumes (9 per cent). Ebitda margin to contract by 80bps to 6.1 per cent.
Overall, net sales are pegged at Rs 107,355.9 crore, Ebitda at Rs 13,416.4 crore, and PAT at Rs 3,952.7 crore.
Sharekhan
Tata Motors, the brokerage said, is expected to come out with strong set of numbers lead by Ebitda margin expansion across the divisions (JLR, dom PV/ CV).
Consolidated revenue is seen at Rs 104,405 crore, and PAT at Rs 28,416 crore.
