Tata Motors shares rise ahead of Q3 results; here's what analysts expect

Tata Motors share price: Shares of Tata Motors gained over 1 per cent in Friday's trade (February 2) and touched the intra-day high at Rs 890.65 apiece on the BSE ahead of posting Q3FY24 results.

At around 10:01 a.m., shares of Tata Motors traded 1.16 per cent or Rs 10.20, higher at Rs 888.55 apiece. Meanwhile, its market capitalisation stood at Rs 2,95,384.49 crore at around the same time.

Zee Business analysts expect the automotive company to report a consolidated net profit of Rs 4,100 crore against Rs 2,958 crore a year ago, which is an increase of 39 per cent. 

The company is estimated to post a revenue of Rs 10,7800 crore for the third quarter that ended December 31 against Rs 88,489 crore year-on-year (YoY), up 21.8 per cent.

The adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) are expected at Rs 14,400 crore against Rs 9,643 crore, which is a rise of 49.3 per cent. Analysts expect the adjusted margin to be 13.4 per cent against 10.9 per cent YoY. Investors should note that a forex gain of Rs 1,177 crore will be adjusted to the base.

The company's subsidiary, Jaguar Land Rover's (JLR), volumes are expected to increase due to improvements in chip supply and strong demand for new models. Domestic consumer vehicle and passenger vehicle business volumes are expected to remain in the single digits. 

As per analysts, earnings growth is possible due to JLR's volume growth.

JLR's EBITDA margin is estimated to increase from 11.9 per cent to 15.1 per cent YoY, and depreciation is expected to increase by 15 per cent to 7,000 crore against Rs 6,071 crore.

Tata Motors January sales numbers

Tata Motors on Thursday said it has reported a six per cent year-on-year increase in its total vehicle sales (including international markets) at 86,125 units in January. 

The company sold a total of 81,069 vehicles in January last year, according to a statement. During the last month, total domestic sales stood at 84,276 units as against 79,681 units in January 2023, logging a 6 per cent year-on-year growth.

At the same time, total commercial vehicle sales declined 2 per cent to 32,090 units in the previous month from 32,780 vehicles in January last year, it said. Total passenger vehicle domestic sales, including EVs, grew 12 per cent to 53,633 units in the month as compared to 47,987 vehicles a year ago.

Tata Motors share price: Past performance 

In a year, shares of Tata Group have gained over 99 per cent against the Nifty 50's rise of over 24 per cent.

(With inputs for agencies)

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