Q1FY22 Result Update - Tata Motors - ICICI Direct

TML reported a muted consolidated performance in Q1FY22.

- Net sales down 25.1% QoQ to Rs. 66,406 crore (JLR, India down 24%, 40.6%)

- EBITDA margins down 550 bps QoQ to 11% (JLR margins down 631 bps QoQ to 9%) amid negative operating leverage

- TML reported loss at PAT level of Rs. 4,450 crore in Q1FY22

Key triggers for future price performance

- Near term blips (JLR chip shortage, India Covid disruption) aside, we expect healthy 20.9% revenue CAGR over FY21-23E backed by 17% volume CAGR

- Cost control, efficiency improvement-led FCF generation targets for ongoing deleveraging push (FY21 net automotive debt at ~Rs. 41,000 crore)

- Continued EV alertness in India (PV market leader with Nexon; plans to introduce 10 models by 2025) and JLR (Jaguar all-electric by 2025; six BEVs in Land Rover in the next five years)

- Margins seen at ~15% in FY23E along with RoCE of ~15%

For details, click on the link below: Link to the report

Shares of TATA MOTORS LTD. was last trading in BSE at Rs. 291.3 as compared to the previous close of Rs. 293.1. The total number of shares traded during the day was 14370419 in over 25682 trades.

The stock hit an intraday high of Rs. 297.6 and intraday low of 288.7. The net turnover during the day was Rs. 4177453190.

Source : Equity Bulls

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