Tata Motors' JLR - Semiconductor Shortages Still The Biggest Challenge: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We meet the management of Tata Motors Ltd. to get an update on the business, especially for Jaguar Land Rover, considering the changing operating environment. semi conductor shortages still remain the key bottleneck for JLR, which is in turn impacting profitability and cash flows. The management maintained its FY23 Ebit margin/free cash flow guidance of 5%/£1 billion for JLR. It expects to be near zero net debt levels for the consolidated automotive debt by FY24. The key takeaways from our meetings are: Demand is not a concern in the premium segment. Macro headwinds are yet to impact demand. The order book is still growing and cancellation rates are still very low. Its order book is now equal to three quarters of production, and hence any demand impact will reflect only after four quarters. For JLR, the biggest issue remains semiconductor supplies. JLR is the most impacted player given the higher usage of semiconductors in its products, smaller scale, and product launches starting with the Defender. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Motors' JLR - Semiconductor Shortages Still The Biggest Challenge: Motilal Oswal

Tata Motors' JLR - Semiconductor Shortages Still The Biggest Challenge: Motilal Oswal

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