Top Mutual Funds
- 13 Jun 2023
- ICICIdirect Research
-
Share
-
-
-
-
-
TATA MOTORS CONDUCTS INVESTOR DAY AT JLR; KEY FINANCIAL GUIDANCE UNCHANGED
TATAMOTORS - 708 Change: -13.10 (-1.82 %)News: In regulatory exchange filing, company informed exchanges about concluding investor day for its foreign operation i.e., JLR. It broadly kept key financial targets unchanged i.e. (i) Revenue targets of >£28 billion by FY24 & >£30 billion by FY26; (ii) >6% EBIT margins for FY24 & >10% EBIT Margins for FY26; (iii) ~£2 billion FCF generation in FY24; (iv) Net cash positive B/S by FY25; (v) wholesales of 400k+ for FY24 (excluding Chinese JV). Pending orderbook pegged at ~2 lakh units with 76% being constituted by higher profitable models namely Range Rover, Range Rover Sport and Defender.
View: It also stands committed to Electrification with aim to invest £3 billion in FY24 (amid overall guidance of £15 billion over 5 years) & net debt reduction to <£1 billion in FY24 (vs ~£3 billion as of FY23). Further company informed about strengthening partnership with Nvidia & all cars from 2025 to contain Level2+ADAS technology based on Nvidia platform. It will also rely on sourcing prismatic cell Li-On battery from Agratas (separate entity under tata sons’ group) for its EV cars. It also shared its intent to increase market share in its high profitable cars namely Range Rover from 12% in H3FY23 to 17% by FY26E. Part of optimism we have already built in our estimates and expect FY24E to be a blockbuster financial year for the company with CFO generation pegged at >₹60,000 crore and debt repayment amounting to >=₹20,000 crore
Impact: Positive