Tata Motors Ltd. share price target

JLRs EBITDA margin at 7.9% was a sharp >400 bps miss, impacted by: (1) higher hedging losses (GBP 454 mn vs. estimate of GBP 300 mn), (2) higher Variable Marketing Expense (VME) and (3) operating deleverage given subdued volumes. Of the 3 factors, we are most worried about high VME despite no major

We cut our FY18/FY19 estimates and introduce FY20 estimates. We maintain BUY with a revised SOTP-based TP of Rs 516 Tata Motors (TTMT) 1QFY18 performance was a miss on account of lower JLR margins (7.9%), led by lower volumes, higher costs associated with launches and rise in staff costs. Standalone margins also were below estimates, owing to an inferior product mix and GST transition-related costs.

ICICI Securities Ltd | Retail Equity Research Tata Motors' (TML) Q4FY17 results came in above our estimates. Consolidated revenues came in at | 77217 crore (down 2.9% YoY, up 14.3% QoQ). Net revenue of 7268 mn (up 10.2% YoY, 11.2% QoQ) came in above our estimates, with the beat attributable to higher than estimated volumes. JLR wholesale volumes were at 175000 units (including China JV), up 7.7% YoY, 14.9% QoQ against our estimate of 144,736 units. Standalone revenues were at | 13586.7...

JLR's EBITDA margin at 14.5% positively surprised partly as hedging losses eased (GBP 315 mn vs. GBP 455 mn QoQ) and was on-par with the underlying operating exchange (overall net gain of GBP 10 mn).

Revenue increased by 20.78% to Rs. 77217.19 Cr in Q4FY17 when compared to the previous quarter.

Tata Motors (TTMT) 4QFY17 performance was a solid beat, with higher-than-expected EBITDA margin of 14.5% at JLR, as hedging losses eased (GBP 315mn vs GBP 455mn QoQ). The India business recorded better performance, with an EBITDA margin of 6%, (vs 4.8% est) driven by lower BS-3 discounts and price hike of 3% in Jan-17.

Q4FY17 consolidated numbers posted a 4.3% yoy topline decline while at the bottomline the numbers declined by 25.7% yoy at 38 bn on adjusted basis. At the standalone level, operating margins improved qoq to 4.6% as recovery was seen post demonetization which took place in Q3. At JLR, margins improved qoq to 14.5% from 10.8% qoq as GBP appreciation was seen in the quarter and hedge unwinding further progressed thus minimizing the losses coming from unfavorable hedges taken earlier. Also, the launch of Discovery saw a 8% yoy volume jump in JLR number post the phasing out of its old model over the last couple of quarters. All these factors led to earnings growth at JLR to...

ICICI Securities Ltd | Retail Equity Research Tata Motors' (TML) Q3FY17 results came in below our estimates. Consolidated revenues came in at | 67531 crore (down 4.3% YoY, up 2.5% QoQ), above our estimate of | 66696 crore. JLR's net revenue of 6537 million (mn) (up 13% YoY, 9.8% QoQ) was above our estimate of 6167 mn, with the beat attributable to higher than expected volumes. JLR wholesale volumes were at 152245 units (including China JV), up 1.2% YoY, 9.3% QoQ vs. our estimate of...

Revenue grew by 2.63% to Rs. 66855.18 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it decreased by 2.22% when compared with Q3FY16.

Tata Motors (TTMT) 3QFY17 performance was disappointing due to weakness in both JLR as well as domestic business. JLR?s EBITDA margin stood at 9.3%, down 500bps YoY impacted by an adverse product mix and higher discounting (Discovery run-out in US). However, if revenue is adjusted to include forex hedging gains, margins would be ~10.1%.