Tata Motors expected to post strong consolidated revenue growth

Riding on strong passenger vehicle growth, Tata Motors is expected to see strong consolidated revenue growth.

As per IIFL Securities, the company is expected to post a 42.6 per cent growth in its consolidated revenue as compared to the year-ago quarter.

According to analysts, the company could be impacted by lower commercial vehicle sales in the quarter owing to pre-buying in the last quarter. 

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“Commercial vehicle players are likely to deliver a 45 per cent cut in earnings quarter-on-quarter as the lower scale would impact operating leverage. With discounts under control along with steady raw material prices, we expect EBITDA margin for commercial vehicle players to fall to 8 per cent vs 11 per cent in Q4FY23 led by lower scale,” according to ICICI Securities.

Analysts will watch out for the volume across the vehicle segments in FY24, inventory levels, supply-chain situation and outlook on discounting on vehicles. 

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Tata Motors on Monday announced that Jaguar Land Rover (JLR) India retail sales doubled with a growth of 102 per cent in the first quarter of FY24 as compared to quarter one FY23. The order book for JLR grew by 88 per cent year-on-year in Q1FY24.

Further, the company saw a 209 per cent growth in Range Rover, Range Rover Sport, and Defender sales.

“Strong sales volume growth at JLR (ex-China JV) of 30 per cent is a key positive, even though the decline of 2 per cent in domestic volumes over the year-ago quarter is a bit of a dampener. The company’s consolidated EBITDA margin could grow 827 basis points over the year-ago quarter to 12.7 per cent,” as per IIFL Securities.