Tata Motors Q3 results preview: Tata Motors is set to announce its results for the period ended on December 31, 2024 later today. The analysts tracking the homegrown auto-major are expecting it to report a strong set of numbers on a sequential basis, but on a yearly comparison, a mixed set of performance is factored in by the carmaker. The company will host its conference call at 6.30 pm (IST) to discuss the quarterly earnings.
The brokerage firms are expecting the company to report a strong growth in revenue and adjusted net profit on a quarter-on-quarter (QoQ) basis, with expansion in margins. However, a degrowth in profit is seen on a year-on-year (YoY) basis with a mild growth in revenue. Management's commentary of JLR sales, outlook and demerger of business shall be the key.
Kotak Institutional Equities is expecting net sales to rise 10.6 per cent QoQ growth in sales at Rs 1,1,2.248.7 crore in Q3FY25. Ebitda is likely to come in at Rs 14,055.5 crore, up 20 per cent QoQ but down 8.3 per cent on a yearly basis with Ebitda margins of 12.5 per cent, improving 101 bps sequentially. Adjusted net profit may come in at Rs 5,339.9 crore, up 78 per cent QoQ but down 5 per cent YoY.
Kotak estimates standalone business revenues to decline in 3QFY25 led by a 1 per cent YoY decline in volumes and fall in ASPs. "We expect Ebitda margin to increase, driven by commodity tailwinds. We also expect domestic PV business Ebitda to improve in 3QFY25, driven by a richer product mix and commodity tailwinds in the EV segment due to a decline in battery prices."
"We expect JLR volumes (excluding China JV) to decline due to weakness in EU and China markets. We expect revenues to decline driven by decline in volumes. We expect ASP to remain flat driven by richer model mix offset by higher discounting and lower China mix. We expect reported Ebitda margin to decline on the back of negative operating leverage and higher VME & marketing spends," Kotak added. Ahead of its quarterly earnings, shares of Tata Motors Ltd rose more than 2.30 per cent to Rs 745.30-level, commanding a total market capitalization close to Rs 2.75 lakh crore. The scrip had settled at Rs 728.45 in the Tuesday's trading session. The stock has cracked more than 38 per cent from its 52-week high at Rs 1,179.05, hit in July 2024.
Elara Capital is penciling Tata Motors revenue to come in at Rs 1,14,977.2 crore in Q3, up 13.3 per cent QoQ and 4 per cent YoY. Ebitda is pegged at Rs 14,905.4 crore, up 22.6 per cent QoQ but 3.3 per cent YoY. Adjusted net profit is seen at Rs 5,941 crore, up 77.7 per cent QoQ, but down 16.5 per cent YoY. Elara currently has a 'buy' rating on Tata Motors with a target price of Rs 1,088.
Sharekhan expects Tata Motors to report a revenue of Rs 1,13,341.60 crore, up 2.5 per cent YoY and 11.7 per cent sequentially. Ebitda margins are likely to come in at 12 per cent, contracting 187 bps YoY and Adjusted PAT is seen at Rs 6,677 crore, down 5 per cent YoY but surging 133.8 per cent QoQ. It has a 'buy' rating on Tata Motors with a target price of Rs 1,099.
B&K Securities is pegging Tata Motor's revenue at Rs 1,15,287.7 crore in the December 2024 quarter, up 4.3 per cent YoY and 13.6 per cent QoQ. Ebitda margin is likely to improve to 14.1 per cent for the quarter. Adjusted net profit is seen to come in at Rs 6,756.2 crore, falling 5 per cent YoY but up 89.9 per cent sequentially. It has a 'hold' rating on the stock.