Tata Motors Q2 Results Review - JLR Outlook Improving; India Margin Disappoints: 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 Q2 FY23 performance was a mixed bag with Jaguar Land Rover margin back to 10%; however, India margin was impacted by 200 bps (QoQ) due to lag effect of higher input cost contracts trickling into numbers. JLR’s Ebitda margin came in at 10.3%, up 400 bps QoQ, owing to a combination of better model mix, improved market mix, rising scale benefit amidst marginal forex losses. Range Rover and RR Sport refresh production picked up to 2400 units a week versus 6,000 units wholesale in Q1 FY23, and thus, the mix is set to improve further from Q3 FY23 with new chip supply agreement coming in place. Thus, with most headwinds for JLR on the verge of being resolved, we believe JLR is likely to revert towards 12% margin levels, with scope to reverse £2 billion of working capital-related increase in debt. India business though impacted temporarily, is largely set to reach the targeted 10% Ebitda margin level in coming quarters with margin tailwinds coming in place..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 Q2 Results Review - JLR Outlook Improving; India Margin Disappoints: ICICI Securities

India margin was impacted by 200 bps (QoQ) due to lag effect of higher input cost contracts trickling into numbers.

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Tata Motors Q2 Results Review - JLR Outlook Improving; India Margin Disappoints: ICICI Securities

India margin was impacted by 200 bps (QoQ) due to lag effect of higher input cost contracts trickling into numbers.

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