- 12 May 2023
- ICICIdirect Research
Tata Motors Q4 Results 2023: Healthy performance
Tata Motors Ltd | CMP: 981 | Market Cap: 326,158.51
Tata Motors (TML) reported healthy performance in Q4FY23 with EBITDA margins coming in ahead of expectations with PAT outperformance aided by tax credits & higher than expected other income. Company has guided for aggressive FCF generation and consequent debt reduction at JLR for FY24E.
Q4FY23 Earnings Summary
India Business (CV+PV)
JLR
Consolidated
View: Tata Motors is an auto OEM from the house of Tata’s, operating in domestic (PV, CV) as well as global markets (Jaguar Land Rover i.e. JLR). Domestically it is riding on cyclical upswing in domestic CV space and robust consumer response to its new portfolio in the PV domain. It is even leading the electrification drive domestically with dominant 80%+ market share in electric PV space. On JLR front, company recently informed about investment plans of £15 billion (~₹ 1.52 lakh crores) over next 5 years towards electrification with plans to convert its existing Halewood, UK facility to dedicated EV plant. Also, company recently informed about starting prebooking for its first electric range rover later this year & launch of 4-door GT under Jaguar brand with 700 kms of range with pricing at~ £1,00,000. On financial terms company retained its financial goals i.e. cash positive balance sheet by FY25 and double digit EBIT margin by FY26 implying healthy volume growth in foreign operations. Incrementally positives for the company are further fund raise and valuation pegging in the domestic Electric Passenger Vehicle domain and board approval for partial stake sale of company’s holding (74.4% stake) in Tata Technologies (E&RD firm working on new technologies like ADAS) through IPO route.
Impact: Positive