Tata Motors Q2 Results Preview: PAT may climb 32% despite muted volume growth across segments

Tata Group auto major - Tata Motors is slated to report its Q2 earnings on Friday (November 8). Analysts at Zee Business research expect the company to post 32 per cent growth in consolidated net profit or PAT to Rs 4,950 crore from Rs 3,764 crore reported in the same quarter last year.

The gains are anticipated despite muted volume growth across segments and weak realization in its domestic passenger vehicle (PV) segment. Furthermore, research says that the company's margins will be aided on the back of commodity tailwinds.

In the different business divisios, the volume and realizations estimates are as below:
% Change YOY                        Volume              Realization
JLR                                               -3.6%                       +4%
India CV                                       -18.7%                   +2.4%
India PV                                      -4.8%                       -5.6%

Consolidated revenue from operations at the company during the reporting quarter is expected to rise only marginally by 0.9 per cent to Rs 1,06,039 crore in the review period, in comparison to Rs 1,05,128 crore in the same peirod last year.

Adjusted EBITDA is also seen soaring to Rs 14,712 crore, up 7.6 per cent, from Rs 13,674 crore reported during the same period last year. However, margin is expected to edge higher by 0.9 per cent or 90 basis points to 13.9 per cent from the earlier 13 per cent. 

Also, during the quarter the company's is expected to log an exceptional expense of Rs 124 crore.

Segment-wise outlook

The company's JLR and PV segments are anticipated to log a decline in EBIT margins during the reporting quarter. While margin in the CV or commercial vehicle segment is seen to remain steady on-year.