Tata Motors Q1FY23 Results Preview: Consolidated losses to narrow; margins may see pressure – stock up nearly 1%

Tata Group auto company Tata Motors’ consolidated losses are likely to be narrowed during the June-end quarter, while the consolidated revenue may surge up to 13 per cent year-on-year, brokerages believe in their earnings preview.  

The auto heavyweight is scheduled to report its quarterly earnings for the first quarter of the financial year 2022-23 (Q1FY23) on Wednesday, July 27, 2022.  

According to Sharekhan estimates, the consolidated loss of Tata Motors in the June quarter of FY23 may come at Rs 1,385 crore as compared to loss of Rs 4,308.2 crore in the same quarter of the FY22.  

The company’s consolidated revenue may surge nearly 13 per cent to Rs 74,987.7 crore as against Rs 66,406.5 crore in a year-ago quarter, the brokerage believes.  

ShareKhan expects a strong uptick in automobile volumes across segments going forward, led by pent-up demand from rural, semi-urban and urban demand along with a favourable macro-outlook. It categorizes Tata Motors as one of the preferred picks from the auto sector. 

Motilal Oswal also believes that the consolidated loss of the auto company to improve from Rs 1,770 crore to loss of Rs 4,450 crore year-on-year, while the consolidated operational income may jump by over 7 per cent to Rs 71,140 crore as against Rs 66,410 crore year-on-year.  

India's business continues with the strong growth in PVs (passenger vehicles) and CVs (commercial vehicles), the brokerage stated, however, added that the India EBITDA margins are estimated to decline sequentially due to raw material cost inflation and operating deleverage. 

JLR volumes to decline YoY due to chip shortages, Motilal Oswal said, estimating near EBIT breakeven supported by mix. It downgrades EPS for FY23 due to reduction in JLR volumes and higher interest cost. 

The shares of Tata Motors are trading nearly 1 per cent higher to Rs 444.7 per share on the BSE ahead of Q1 earnings today.