EUR 120.00 For Business Accounts Only

MOSL: Morning India (9/March/20): 1. Tata Motors (Coronavirus to impact JLR’s FY20 EBIT margin by 1pp); 2. BPCL (GoI invites EoI for BPCL); 3. Lupin (Domestic formulation on steady footing)

Morning India (9/March/20):

Today’s top research idea
Tata Motors: Coronavirus to impact JLR's FY20 EBIT margin by 1pp

** While TTMT's China business of JLR is expectedly down sharply, the company has started to see an impact in other markets as well.

** JLR's Feb-20 retails in China were down 85% as only 20% of dealers were operational in 1st fortnight, which improved to 80% by end Feb.

** Suppliers in China are resuming operations but remain below full capacity. Over 95% of TTMT's Tier 1 and Tier 2 suppliers in China are now open but at reduced capacity.

** For FY20, it is indicating JLR's EBIT margin level impact of 1pp over guidance of ~3%.

** For the India business, it expects 4QFY20 to see further impact (due to Coronavirus) on already expected weak performance due to BS6 transition.

** We are cutting our FY21E consol. EPS by ~35% to factor in further impact of the Coronavirus in 1QFY21 for JLR and weaker-than-expected India CV business in FY21.

 Piping hot news
Oil down over 30% after Saudis slash prices in all-out crude war
Oil markets fell the most since the U.S. war in Iraq in 1991 after the disintegration of the OPEC+ alliance triggered an all-out price-war among the world’s biggest producers. In one of the most dramatic bouts of selling ever, Brent futures sunk by 31% in a matter of seconds after the open of trading in Asia on Monday after already suffering their biggest loss since the global financial crisis at the end of last week.