Tata Motors Q1 Review - Reasonable Performance In A Tough Quarter: Motilal Oswal

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Motilal Oswal Report

Tata Motors Ltd. faced the double whammy of closure in the India business and a chip shortage in the Jaguar LandRover business in Q1 FY22.

The operational performance beat was driven by a favorable mix in both businesses.

Looking beyond the near-term issues, we expect good traction in the JLR and India businesses.

Tata Motors' Q1 FY22 consolidated revenue/Ebitda grew ~108%/727% y-o-y to Rs 664.1 billion/Rs 53 billion (versus estimate- Rs 555 billion/Rs 36 billion).

Adjusted loss stood at Rs 44.5 billion (versus estimate Rs 27.4 billion), against loss of Rs 84 billion in Q1 FY21 and profit of Rs 57.4 billion in Q4 FY21.

Net loss was higher than estimated due to the non-recognition of deferred tax assets in JLR.

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