Tata Motors' (TTMT) delivered strong Q1FY17 performance with healthy operating margins at JLR, post adjusting forex and incentive impact. Its consolidated Revenues/EBIDTA/PAT grew 9%/-31%/-60% YoY but down 18%/33%/60% QoQ to Rs 659bn/Rs76bn/Rs19bn (our estimate of Rs 618bn/Rs80bn/Rs21.5bn) in the quarter. Consolidated EBIDTA margin declined by 667bps YoY and 256 bps QoQ to 11.6%, impacted by product mix and geographical mix at JLR. JLR's reported EBIDTA margin declined 391bps QoQ and 411 bps YoY to 12.3%, while adjusted for forex impact margins stood at 14%. JLR's margin performance was supported by higher ASP on account of higher contribution of high end products and currency. TTMT's standalone business reported positive EBIDTA for the sixth consecutive time in last 15 quarters with EBIDTA of Rs.5.74bn, up22% YoY. It reported standalone net profit of Rs 0.26 bn as against net profit of Rs 2.9bn in Q1FY16.