Tata Motors Q1 Results Preview: Tata group auto giant likely to stage healthy performance with margin expansion

Tata Motors- the auto major is set to release its Q1 results on Thursday (August 1, 2024). Zee Business research desk estimates the company to post a good quarter with profit expected to soar 57 per cent on-year to Rs 5,035 crore. Consolidated revenue at the company is seen inching higher by 7.4 per cent on-year to Rs 1,09,780 crore as against Rs 1,02,236 crore reported in the same quarter last year.

The adjusted EBITDA is also expected to inch higher by 11.2 per cent on-year to Rs 15,075 crore. In the same period, last year the company's adjusted EBITDA was at Rs 13,559 crore. Meanwhile, adjusted margin is expected to come in at 13.7 per cent, registering a 40 bps surge on-year. In the same quarter last year, the company posted a margin of 13.3 per cent. The growth in the margin is expected on the back of commodity tailwinds.

Forex loss to the tune of Rs 342 crore has been adjusted in the EBITDA. Further, in the previous March quarter, the company posted an exceptional loss of Rs 677 crore.

Growth expected in the company's different segments

% Change YOY                        Volume              Realisation
JLR                                               +3%                       -4%
India CV                                       +5.4%                   Flat
India PV                                      -1.2%                  +0.5%

The company's CV and PV segments are expected to see growth in the EBIT margin during the reporting quarter. Nevertheless, the company's JLT segment is likely to see a contraction in EBIT margin and come in at 15.4 per cent on the back of unfavourable mix.

Nomura upgraded Tata Motors

Recently, Nomura upgraded the stock to buy from neutral and hiked the target price to Rs 1,294, suggesting an upside of over 11 per cent. The various rationales given by the brokerage is that the company's stock is expected to rise due to strong execution of JLR's order book