Tata Motors Q4 Review - Better-Than-Expected Profitability Boosts Free Cash Flow: ICICI Securities

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..ICICI Securities Report.Tata Motors Ltd.’s operational performance was marginally ahead of our estimates with Ebitda margin for commercial vehicle, India passenger vehicle and Jaguar Land Rover combined being ~100 basis points higher than expected. JLR’s wholesale volumes were up ~10% QoQ to ~76,000 units with ~60 bps QoQ improvement in Ebitda margin at 12.6% amid adverse raw material costs and adverse mix QoQ. With prudent capex spend (~£0.5 billion) and improved profitability, JLR was able to generate positive free cash flow of £340 million and in turn helped Tata Motors reduce its net auto debt by Rs 117 billion QoQ to Rs 487 billion. With the orderbook at 168,000 units and low channel inventory in system, we expect mix to normalise resulting in mean reversion of realisation and gross margin as production improves. .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 Q4 Review - Better-Than-Expected Profitability Boosts Free Cash Flow: ICICI Securities

Tata Motors Q4 Review - Better-Than-Expected Profitability Boosts Free Cash Flow: ICICI Securities

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