Tata Motors's global sales down sharply in December 2012 - Angel Broking

Tata Motors (TTMT) reported a sharp decline of 13.9% yoy (3.3% mom) in global wholesale volumes for December 2012 to 98,968 units. This was primarily owing to the poor performance by the domestic passenger and medium and heavy commercial vehicle segments. While, global commercial vehicle sales posted a decline of 3.4% yoy (up 5.7% mom); global passenger vehicle volumes fell significantly by 23.2% yoy (11.6% mom).

Jaguar and Land Rover (JLR) too posted lower-than-expected wholesale volume growth of 4.2% yoy (down 6.8% mom) to 32,282 units against our expectations of 34,500 units. Land Rover sales during the month posted a muted growth of 2.2% yoy (down 5.5% mom) to 26,838 units. However, Jaguar sales posted a strong growth of 15.2% yoy (down 13% mom) led by the dispatches of the all-wheel-drive XF and XJ models to US and smaller engine versions of XF and XJ to China.

We wait for more clarity from the management on December volumes and will come up with a detailed report soon. Due to limited upside from current levels we maintain our Neutral rating on the stock.

Source : Equity Bulls

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