Tata Motors, Bajaj Auto, Tata Elxsi, Indraprastha Gas & More Q3 Results Reviews: HDFC 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. .HDFC Securities Institutional Equities.Tata Motors Ltd. - Multiple headwinds to limit debt repayment abilityAlthough headline numbers at Jaguar Land Rover suggest a margin beat relative to expectations, the beat is led by higher capitalised costs. Also, the decline in gross margin QoQ despite the best-ever mix has been a negative surprise. In India, while commercial vehicle business performance has been impressive, passenger vehicle business margin has been in line and Tata Motors Finance has again disappointed. .Bajaj Auto Ltd. - Strong Q3 but a bleak outlookBajaj Auto’s Q3 profit after tax at Rs 14.9 billion came in ahead of our estimate of Rs 13.5 billion, led by better-than-expected operating performance. Margin beat was largely driven by better-than-expected average ASP, which was in turn led by an improved mix and favorable currency. Management indicated that the near-term export outlook continues to remain weak due to the devaluation of local currency and erosion of purchasing power in its key regions but remained hopeful of an export revival by May-June 2023..Tata Elxsi Ltd. - Shrinking growth premiumTata Elxsi’s growth was propelled by IDV business, but the growth rate for the company has been moderating. Growth in Q3 was led by the design segment, which contributed nearly half of incremental growth and revenue was also boosted by strong growth in the transportation vertical. These were offset by a sequential decline in media and communication and medical verticals on furlough impact..Indraprastha Gas Ltd. - High input gas costs weigh on marginsOur optimism on Indraprastha Gas is based on robust volume growth at ~14% compound annual growth rate over FY22-25E; regulatory support from the government to curb pollution in the Delhi/NCR region; and a strong portfolio of mature, semi-mature, and new geographical areas.Q3 FY23 Ebitda was at Rs 4.3 billion, which came in above our estimate; however, it declined 9% YoY and 19% QoQ, owing to higher input gas cost. adjusted profit after tax was at Rs 2.8 billion, above our estimate, and was down 10% YoY and 33% QoQ. Reported volume at 8.12 metric million standard cubic metre per day (up 6% YoY)..Click on the attachment to read the full report:.Tata Motors Q3 Results Review - Strong Performance In JLR, Commercial Vehicles: Motilal Oswal.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, Bajaj Auto, Tata Elxsi, Indraprastha Gas & More Q3 Results Reviews: HDFC Securities

Tata Motors' multiple headwinds to limit debt repayment ability.

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