&w=3840&q=100)
Tata Motors Q4 Preview: Here's what to expect from auto giant in March qtr
Tata Motors shares were buzzing in trade a day ahead of Q4 results, with the stock rising up to 3.39 per cent to hit an intraday high of ₹732.55.
Tanmay Tiwary New Delhi
Tata Motors Q4 Preview: Automobile major Tata Motors is likely to announce its March quarter of financial year 2025 (Q4FY25) results on Tuesday, May 13, 2025.
While domestic brokerage firm Nuvama and Kotak Institutional Equities anticipate flat revenue growth and a decline in earnings before interest, tax, depreciation and amortisation (Ebitda) and profit after tax (PAT), Motilal Oswal projects a stronger performance, driven by improved margins and higher Jaguar Land Rover (JLR) volumes.
A key focus remains on J aguar Land Rover's demand trends and margin outlook, as analysts foresee pressure from discounts and rising costs.
Domestic operations, particularly in passenger and commercial vehicles, are expected to show stable or marginally improved profitability. Overall, Q4 results will reflect a complex interplay of cost pressures, product mix, and market dynamics.
That said, Tata Motors shares were buzzing in trade a day ahead of Q4 results, with the stock rising up to 3.39 per cent to hit an intraday high of ₹732.55.
Given this, here's what to expect in Q4FY25 results from Tata Motors:
Nuvama
Analysts at Nuvama expect Tata Motors' revenue to remain flat year-on-year (Y-o-Y) in Q4FY25. Despite improved margins in the India CV and PV segments, overall Ebitda margin is likely to contract due to weaker performance at JLR. The key monitorable will be JLR's demand trends and margin outlook.
Thus, analysts project a revenue of ₹1,20,454.5 crore (flat Y-o-Y), Ebitda at ₹16,001.9 crore (down 6 per cent Y-o-Y), and PAT at ₹7,681.3 crore (down 56 per cent Y-o-Y)
Kotak Institutional Equities
Kotak Institutional Equities analysts expect the standalone business to witness a 5 per cent Y-o-Y decline in revenue, driven by a 4 per cent drop in volumes and a 1 per cent fall in average selling prices (ASPs). However, Ebitda margin is seen rising 90 bps Y-o-Y due to lower commodity costs and a richer product mix.
Also, domestic PV margins are expected to improve to 7.7 per cent supported by EV segment tailwinds and PLI incentives. JLR revenue (ex-China JV) is expected to fall 2 per cent Y-o-Y, as volumes decline 3 per cent. ASPs may rise slightly with a better model mix, but margins could be impacted by higher discounts and marketing expenses.
Hence, analysts expect a revenue of ₹1,20,932.9 crore (up 0.8 per cent Y-o-Y), Ebitda of ₹16,110.2 crore (down 5.2 per cent Y-o-Y), and PAT at ₹7,982.7 crore (down 54.1 per cent Y-o-Y)
Motilal Oswal
Motilal Oswal noted a volume decline of ~6 per cent in PVs and ~3 per cent in CVs Y-o-Y. CV Ebitda margins are expected to expand 90 bps, while PV margins are likely to stay steady at 7.3 per cent. JLR volumes are projected to grow 3 per cent Y-o-Y, although the Ebitda margin is seen contracting by 130 bps due to rising discounts and warranty costs.
Despite margin pressures, analysts expect Tata Motors to report an 8 per cent growth in PAT. Overall, analysts expect a revenue of ₹1,26,280 crore (up 5.2 per cent Y-o-Y), Ebitda of ₹17,200 crore (up 1.2 per cent Y-o-Y), and PAT at ₹8,360 crore (up 8.2 per cent Y-o-Y).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
BYD Unleashes an EV Industry Reckoning That Alarms Beijing
(Bloomberg) -- The price war engulfing China's electric vehicle industry has sent share prices tumbling and prompted an unusual level of intervention from Beijing. The shakeout may just be getting started. For all the Chinese government's efforts to prevent price cuts by market leader BYD Co. from turning into a vicious spiral, analysts say a combination of weaker demand and extreme overcapacity will slice into profits at the strongest brands and force feebler competitors to fold. Even after the number of EV makers starting shrinking for the first time last year, the industry is still using less than half its production capacity. Chinese authorities are trying to minimize the fallout, chiding the sector for 'rat race competition' and summoning heads of major brands to Beijing last week. Yet previous attempts to intervene have had little success. For the short term at least, investors are betting few automakers will escape unscathed: BYD, arguably the biggest winner from industry consolidation, has lost $21.5 billion in market value since its shares peaked in late May. 'What you're seeing in China is disturbing, because there's a lack of demand and extreme price cutting,' said John Murphy, a senior automotive analyst at Bank of America Corp. Eventually there will be 'massive consolidation' to soak up the excess capacity, Murphy said. For automakers, relentless discounting erodes profit margins, undermines brand value and forces even well-capitalized companies into unsustainable financial positions. Low-priced and low-quality products can seriously damage the international reputation of 'Made-in-China' cars, the People's Daily, an outlet controlled by the Communist Party, said. And that knock would come just as models from BYD to Geely, Zeekr and Xpeng start to collect accolades on the world stage. For consumers, price drops may seem beneficial but they mask deeper risks. Unpredictable pricing discourages long-term trust — already people are complaining on China's social media, wondering why they should buy a car now when it may be cheaper next week — while there's a chance automakers, as they cut costs to stay afloat, may reduce investment in quality, safety and after-sales service. Auto CEOs were told last week they must 'self-regulate' and shouldn't sell cars below cost or offer unreasonable price cuts, according to people familiar with the matter. The issue of zero-mileage cars also came up — where vehicles with no distance on their odometers are sold by dealers into the second-hand market, seen widely as a way for automakers to artificially inflate sales and clear inventory. Chinese automakers have been discounting a lot more aggressively than their foreign counterparts. Murphy said US automakers should just get out. 'Tesla probably needs to be there to compete with those companies and understand what's going on, but there's a lot of risk there for them.' Others leave no room for doubt that BYD, China's No. 1 selling car brand, is the culprit. 'It's obvious to everyone that the biggest player is doing this,' Jochen Siebert, managing director at auto consultancy JSC Automotive, said. 'They want a monopoly where everybody else gives up.' BYD's aggressive tactics are raising concerns over the potential dumping of cars, dealership management issues and 'squeezing out suppliers,' he said. The pricing turmoil is also unfolding against a backdrop of significant overcapacity. The average production utilization rate in China's automotive industry was mere 49.5% in 2024, data compiled by Shanghai-based Gasgoo Automotive Research Institute show. An April report by AlixPartners meanwhile highlights the intense competition that's starting to emerge among new energy vehicle makers, or companies that produce pure battery cars and plug-in hybrids. In 2024, the market saw its first ever consolidation among NEV-dedicated brands, with 16 exiting and 13 launching. 'The Chinese automotive market, despite its substantial scale, is growing at a slower speed. Automakers have to put top priority now on grabbing more market share,' Ron Zheng, a partner at global consultancy Roland Berger GmbH, said. Jiyue Auto shows how quickly things can change. A little over a year after launching its first car, the automaker jointly backed by big names Zhejiang Geely Holding Group Co. and technology giant Baidu Inc., began to scale down production and seek fresh funds. It's a dilemma for all carmakers, but especially smaller ones. 'If you don't follow suit once a leading company makes a price move, you might lose the chance to stay at the table,' AlixPartners consultant Zhang Yichao said. He added that China's low capacity utilization rate, which is 'fundamentally fueling' the competition, is now even under more pressure from export uncertainties. While the push to find an outlet for excess production is thrusting more Chinese brands to export, international markets can only offer some relief. 'The US market is completely closed and Japan and Korea may close very soon if they see an invasion of Chinese carmakers,' Siebert said. 'Russia, which was the biggest export market last year, is now becoming very difficult. I also don't see Southeast Asia as an opportunity anymore.' The pressure of cost cutting has also led analysts to express concern over supply chain finance risks. A price cut demand by BYD to one of its suppliers late last year attracted scrutiny around how the car giant may be using supply chain financing to mask its ballooning debt. A report by accounting consultancy GMT Research put BYD's true net debt at closer to 323 billion yuan ($45 billion), compared with the 27.7 billion yuan officially on its books as of the end of June 2024. The pain is also bleeding into China's dealdership network. Dealership groups in two provinces have gone out of business since April, both of them ones that were selling BYD cars. Beijing's meeting with automakers last week wasn't the first attempt at a ceasefire. Two years ago, in mid 2023, 16 major automakers, including Tesla Inc., BYD and Geely signed a pact, witnessed by the China Association of Automobile Manufacturers, to avoid 'abnormal pricing.' Within days though, CAAM deleted one of the four commitments, saying that a reference to pricing in the pledge was inappropriate and in breach of a principle enshrined in the nation's antitrust laws. The discounting continued unabated. --With assistance from Yasufumi Saito and Chester Dawson. More stories like this are available on
Time of India
5 hours ago
- Time of India
New disputes emerge ahead of US-China meet in London
Beijing: US-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs. Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession. Since then, the US and China have exchanged angry words over advanced semiconductors that power artificial intelligence, "rare earths" that are vital to carmakers and other industries, and visas for Chinese students at American universities. President Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. Trump announced the next day that trade talks would be held on Monday in London. The latest frictions began just a day after the May 12 announcement of the Geneva agreement to "pause" tariffs for 90 days. Live Events The US Commerce Department issued guidance saying the use of Ascend AI chips from Huawei, a leading Chinese tech company, could violate US export controls. That's because the chips were likely developed with American technology despite restrictions on its export to China, the guidance said. The Chinese government wasn't pleased. One of its biggest beefs in recent years has been over US moves to limit the access of Chinese companies to technology, and in particular to equipment and processes needed to produce the most advanced semiconductors. "The Chinese side urges the US side to immediately correct its erroneous practices," a Commerce Ministry spokesperson said. US Commerce Secretary Howard Lutnick wasn't in Geneva but will join the talks in London. Analysts say that suggests at least a willingness on the US side to hear out China's concerns on export controls. China indicated Saturday that it is addressing the concerns, which have come from European companies as well. Economic Times WhatsApp channel )
&w=3840&q=100)
Business Standard
6 hours ago
- Business Standard
India holds the top spot in our EM playbook: Bernstein's Venugopal Garre
Garre tells that improving macro conditions and lower earnings risk make this a good time to start evaluating bottom-up opportunities in quality midcaps Listen to This Article Mid and smallcap stocks took a beating during the market correction earlier this year. Venugopal Garre, managing director and India head of research at Bernstein, tells Puneet Wadhwa in an email interview that improving macro conditions and lower earnings risk make this a good time to start evaluating bottom-up opportunities in quality midcaps. His December 2025 Nifty target is 26,500. Edited excerpts: It has been a choppy year for equities globally. Which camp are you in — the bulls or the bears? Globally, we expect continued volatility as policy uncertainty remains high, particularly with ongoing US-China trade negotiations and shifting
