Tata Motors may report Q1 loss of Rs 1,900 crore | Economic Times

NEW DELHI: Tata Motors is likely to report losses to the tune of Rs 1,891 crore for the June quarter, an ET NOW poll of analysts suggested.The Tata group company had reported Rs 8,443.90 crore in losses in the same quarter last year.Losses for the quarter would be seen even as the analyst poll sees revenues rising 98.1 per cent YoY to Rs 63,349 crore compared with Rs 31,983 crore in the same quarter last year.Ebitda may rise nine times to Rs 5,694 crore from Rs 635 crore YoY, the poll suggested.Margins are seen expanding to 9 per cent from 2 per cent in the year-ago quarter. All eyes would be on the production situation at UK-based subsidiary Jaguar Land Rover (JLR), ET NOW poll suggested. Analysts so far expect JLR to report a negative Ebit margin due to chip shortage.In a business update earlier this month, JLR said that the global semiconductor supply shortage is an area of concern and has impacted June quarter performance and is set to adversely affect the near-term outlook as well.JLR’s retail sales in the June quarter were at 1.24 lakh units, up 68 per cent YoY and flattish sequentially. But, at the wholesale level, volumes (excluding the China JV) stood at 84,442 units, down 30,000 units or 27 per cent than planned, hampered in part by the supply constraints surrounding semiconductors globally.JLR had said that the shortage was difficult to forecast, with the situation set to worsen in the September quarter, leading to a possible 50 per cent reduction in planned wholesale volumes.New product timelines, demand, and inventory situation across JLR's key markets and the domestic business growth outlook for Tata Motors will be keenly tracked.So far, foreign brokerages Nomura and Credit Suisse have a neutral rating on Tata Motors' stock with targets of Rs 353 and Rs 304, respectively.Jefferies has a 'buy' target on the stock with a target of Rs 434 while HSBC sees the stock at Rs 340.The stock has fallen 11.6 per cent in the last one month. The stock is up 59 per cent year-to-date.