MOSL: TATA MOTORS (Buy)-Above est-Strong performance at both JLR & India business
​Tata Motors: Above est; Strong performance at both JLR & India business
(TTMT IN, Mkt Cap USD23.0b, CMP INR440, TP INR575, 31% Upside, Buy)
- Consol EBITDA increased 20% YoY (+80% QoQ) to INR89.4b (est INR72.5b), translating into EBITDA margin expansion of 90bp YoY (+4100bp QoQ) at 12.6% (est 10.5%). Adj PAT increased 65% YoY to INR24.4b (est INR12.1b).
- JLR – Lower fx hedge loss, lower other expenses & Op. leverage drives EBITDA: Net sales at GBP6.3b (in-line) grew 11.5% YoY (+12.9% QoQ) led by volume growth of 6.2% YoY and realization growth of 5% YoY. EBITDA margins expanded 90bp YoY (+390bp QoQ) to 11.8% (v/s est 10.7%) driven by lower fx hedge loss, lower other expenses and operating leverage. Further higher share of China JV PAT, fx gains and lower depreciation boosted adj. PAT growth to 26% to GBP308m (est GBP169m).
- S/A – Better mix and cost reduction propels EBITDA margins: Revenues grew 35% YoY (+53% QoQ) to INR138.9b (est INR130.9b) led by volume and realisation growth of 14% YoY and 18% respectively. EBITDA margin came in at 7% (est. 4.5%), expanded 370bp YoY (+700bp QoQ), driven by better mix, cost reduction initiatives and op. leverage. As a result, net loss was lower at INR2.9b (est INR4.7b), as against loss of INR5.8b in 2QFY17.
Tata Motors is an automobile company, engaged in the manufacture and sale of commercial and passenger vehicles primarily in India. Co. provides cars, utility vehicles, trucks, buses, and defense vehicles, as well as develops electric and hybrid vehicles for personal and public transportation. In addition, Co. is engaged in the provision of engineering and automotive applications, as well as machine tools and factory automation applications; construction equipment manufacturing; automotive vehicle components manufacturing, among others. Co. markets its vehicles in Europe, Africa, the Middle East, South East Asia, South Asia, and South America.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.