Tata Motors Share Price Today: Tata Motors’ share price fell in the early trade on Thursday, a day after the company reported losses in the quarter ended June 2022. The automobile giant consolidated losses for the first quarter (Q1) that ended June deepened as semiconductor woes, coupled with a lockdown in China and volatile foreign exchange, dented earnings at Jaguar Land Rover (JLR) Automotive — its UK subsidiary.
Tata Motors said its consolidated net loss for the quarter ended June 2022 came in at Rs 5,006.60 crore, widening from a loss of Rs 4,450.92 crore in the same quarter last year. Total revenue from operations, however, stood at Rs 71,934.66 crore, up 8.32 per cent from Rs 66,406.45 crore in the year-ago quarter.
The EBITDA margin was at 7.4 per cent for the quarter, down 90 basis points year-on-year (YoY), while the Ebit margin increased 60 basis points to -0.7 per cent. One basis point is one-hundredth of a percentage point.
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“India business performed well with CV Ebitda ahead of JEFe and PV EBITDA broadly inline. Tata Motors expects JLR performance to improve significantly starting 2Q as RR/RR-Sport production ramps up amid strong order book. We cut FY23 EPS by 24 per cent but retain Buy on Tata Motors shares,” said Jefferies with target price of Rs 540 on the auto stock.
The company’s British arm Jaguar Land Rover (JLR) posted revenue of 4.4 billion pound in the first quarter, down 7.6 per cent from the fourth quarter of FY22, impacted by supply challenges including semiconductor shortages.
JLR’s CEO Thierry Bollore said headwinds from the global semiconductor supply and COVID lockdowns in China impacted its business performance in the period under review.
“We estimate FY22-24E India CV/PV volume CAGRs of 16 per cent/28 per cent, driven by continued upcycle in industry sales and better chip supplies. The focus remains on E-PVs, with medium-term investments of US$2bn toward new products, capacity expansion, localization, and charging infrastructure,” said brokerage Emkay. The brokerage has reaffirmed Buy with an SOTP-based target price of Rs 530.
Motilal Oswal said: “Tata Motors should witness a gradual recovery as supply-side issues ease (for JLR) and commodity headwinds stabilize (for the India business). It will benefit from: a) a macro recovery, b) company-specific volume and margin drivers, and c) a sharp improvement in FCF and leverage in both JLR as well as the India business. We maintain our Buy rating, with a target price of ~ Rs 520/share (Jun’24E based SoTP).”
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