Tata Motors Q2 Preview: Firm to report over Rs 4700 crore profit, revenue likely to grow 30% YoY

Auto major Tata Motors is expected to post strong revenue growth in the September quarter on the back of healthy volume growth in JLR and India business.

Increased realisations will also help the automaker clock revenues higher by 33% year-on-year, according to an average estimate of four brokerages. The company is expected to report a profit of Rs 4,737 crore as against a loss a year ago.

JLR reported volume growth of around 29% in the July-September period, while the group global wholesales were up 7% in the same period.

Tata Motors reported a higher-than-expected net profit of Rs 3,203 crore for the quarter ended June, and revenue from operations increased 42% to Rs 1.02 lakh crore.

Here's what analysts expect from Tata Motors' Q2:

Nuvama
Revenue growth to be driven by better net pricing, forex translation gains and volume growth in JLR and India CV divisions. EBITDA margin expansion YoY to be driven by better net pricing, scale and cost savings. Key thing to watch out for is JLR production outlook.

Kotak Equities
We expect EBITDA margin to improve to 10.3% in 2QFY24 from 8.4% in 1QFY24, led by RM tailwinds and operating leverage benefits, partly offset by lower spares mix.

We expect JLR volumes (excluding China JV) to decline marginally by 1% QoQ due to the summer holidays in the Europe region. Overall, we expect revenues (ex-China JV) to decline by 2% QoQ in 2QFY24. We expect the reported EBITDA margin to decline by 90 bps QoQ to 15.3% as 1QFY24 had a one-time benefit of 90-100 bps. As a result, we expect JLR EBIT margin to come in at 7.4% in 2QFY24. On a YoY basis, EBITDA is sharply, up mainly on account of lower base as the company was facing supply chain issues during 2QFY23.

Prabhudas Lilladher
We expect a revenue growth of 37% YoY. The company's consolidated EBITDA margin at 14.7% is expected to increase by 380bps YoY. PAT to turn positive YoY.

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