Revenue from operations during the June quarter fell to Rs 31,983.1 crore compared to Rs 61,467 crore in the year-ago period.
Tata Motors share price rose 5 percent in the morning trade on August 3 after the company came on July 31 reported a consolidated loss of Rs 8,443.98 crore for the quarter ended June 2020, with lockdown in several countries affecting JLR and domestic businesses.
The loss was significantly higher than Rs 3,679.66 crore loss posted in Q1FY20 and Rs 9,863.75 crore loss in Q4FY20.
Revenue from operations during the June quarter fell to Rs 31,983.1 crore, compared to Rs 61,467 crore in the year-ago period.
Also Read - Tata Motors reports Q1 loss at Rs 8,443 crore; JLR sales down 42% YoY
Here is what brokerages have to say about the stock and the company:
CLSA | Rating: Upgrade to buy from underperform, target raised to Rs 135 from Rs 103
The Q1 is significant a beat, driven by aggressive cost reduction measures. Both JLR and India surprised on EBITDA and FCF despite volume declines of 45-82 percent YoY. The management continues to guide for positive FCF in Q2-Q4FY21 & FY22.
CLSA raised FY21-22 EBITDA forecasts by 4-6 percent and FCF to Rs 4,000 crore from Rs 3,000 crore. The renewed FCF focus coupled with current valuations reflects a positive risk-reward, reported CNBC-TV18.
Kotak Institutional Equities | Rating: Retain sell | Target: Rs 90
The consolidated profit was better than the expectations of loss, driven by cost-cutting initiatives. A substantial pick-up in volumes is essential for the company to return to profitability.
Kotak sees limited visibility of the company reporting profits anytime soon, reported CNBC-TV18.
Ambit | Rating: Buy | Target: Increased to Rs 139
JLR to turn FCF positive from Q2 as it increased its charge+target by 1 billion pounds to 2.5 billion pounds for FY21.
The target raised on favourable currency and rollover, reported CNBC-TV18.
Prabhudas Lilladher | Rating: Hold | Target: Rs 108
The company’s 1QFY21 consolidated EBITDA exceeded expectations beating JLR performance led by cost savings and better realisations. Prabhudas Lilladher increases FY22/23 consolidated EPS by 10 percent/3 percent to factor in better JLR performance and currency gains.
Motilal Oswal | Rating: Buy | Target: Rs 127
Motilal Oswal expects losses to gradually reduce in the coming quarters and turn profitable only from 4QFY21. It has lowered FY21E loss estimates by 8 percent and upgraded FY21E EPS estimates by 8 percent to factor in faster JLR volume recovery and cost-cutting initiatives.
At 0918 hours, Tata Motors was quoting at Rs 108.15, up Rs 3.45, or 3.30 percent, on the BSE.