Tata Motors: 10 things to watch out for in Q1 results Tata Motors will announce its quarterly results today. The company is expected to post a net profit of Rs 2,650 crore for the quarter ended June 2012, up 33.4 per cent, boosted by a jump in LCV sales growth, according to ET Now estimates.
The company reported a Rs 2,000 crore net profit in the corresponding period of the 2011-12 fiscal year. Earnings before interest, taxes, depreciation and amortization (EBITDA) -- the operations profitability measure of a company -- is expected to rise by 33.4 per cent to Rs 5,650 crore against Rs 4,236 crore in the year-ago-period. Margins for the company are seen at 13.1 per cent as compared to 13.09 per cent in the corresponding quarter of the last year. Shares of Tata Motors have been gaining momentum in the last couple of weeks ahead of its quarterly results announcement. The stock has surged over 30 per cent over the year. According to dealers, apart from result expectations, the stock was reacting to hopes of a rate cut that might help boost sales in the domestic market. The company is likely to report strong quarterly results on the back of growth in Jaguar Land Rover (JLR) sales while domestic sales may hurt. "The results are expected to be good on a year-on-year basis, led by strong growth in the Jaguar Land Rover segment. Domestic performance will be under pressure due to lower sales in MHCVs," Yaresh Kothari, Research Analyst at Angel Broking, said. *10 things to watch out for in the results:* 1) Margins likely flat YoY; however, may slip QoQ. 2) Growth in LCV by 16 per cent is likely to drive domestic sales. 3) Standalone sales are likely to decline by 9 per cent dues to lower volumes (- 2 per cent) and realisations, which have come down by 7 per cent. 4) Standalone margins are seen at 8 per cent as compared to 8.4 per cent in the year-ago period 5) JLR margins seen at 13.7 per cent (down 100 bps QoQ) 6) JLR volume growth will boost revenues in Q1 7) JLR volume growth is expected in the range of 36-38 per cent 8) JLR realisations expected to decline by 3-4 per cent YoY 9) Realisations are likely to drop due to changing product mix as more Evoque sales are expected 10) Management view on margins, demand outlook in China and European markets will be keenly awaited -- CA. Rajesh Desai -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
