Tata Motors Q1 results today: Key things to watch out for

New Delhi: Tata Motors Ltd, India’s largest automaker by sales revenue, will report its June quarter (Q1 FY19) results on Tuesday. The sustained turnaround in the domestic business, helped by a low base, is unlikely to offset a muted performance by the UK subsidiary Jaguar Land Rover (JLR) Automotive Plc, as the Tata Group flagship is expected to report a net profit of Rs 909.1 crore on net sales of Rs 70,900.8 crore, according to a Bloomberg poll of 10 analysts.

During the corresponding quarter a year ago, Tata Motors reported a net profit of Rs 3,200 crore on net sales of Rs 58,651 crore. If not for a one-time gain owing to a change in pension plans at JLR, Tata Motors would have swung to a loss of Rs 409 crore.

During the three months to June, JLR sales volume showed strong signs of recovery with a 5.85% growth, while the domestic market was buoyed by higher passenger and commercial vehicle sales.

Analysts estimate consolidated margins to expand by about 60 to 150 basis points during the quarter, driven by lower raw material and manufacturing costs at JLR, gains from expressing pound revenues in rupee terms (as the pound appreciated about 11% against the rupee during the quarter), and a richer product mix for commercial vehicles in the domestic market. One basis point is one-hundredth of a percentage point.

Tata Motors