- 28 Jul 2022
- ICICIdirect Research
Posted muted numbers for Q1FY23TATAMOTORS - 412 Change: -4.70 (-1.13 %)
News: Consolidated total operating income for the quarter came in at Rs 71,935 crore, down 8.3% QoQ. Reported EBITDA for Q1FY23 stood at Rs 5,872 crore with corresponding EBITDA margins at 8.2%, down 650 bps QoQ. Decline in margin performance was primarily on account of rise in other expense which rose 440 bps QoQ with gross margins declining by ~180 bps QoQ. Consolidated loss after tax stood at Rs 5,007 crore.
Views: Company begins the fiscal year on muted note with margins surprising the street negatively. However, management commentary on future demand prospect and improved profitability was positive with cooling commodity prices expected to aid improvement in underlying margins. On JLR front it aims to deliver strong improvements in EBIT and free cash flows from Q2FY23 onwards. It remains committed to be near net debt zero by FY24E