TTMT global sales down 16.6% yoy in March 2013 - Angel Broking

The global sales of Tata Motors (TTMT) continued with the downward slide in March 2013 (down 16.6% yoy) to 116,521 units, led by a poor domestic performance in the passenger vehicle (down 65.7% yoy) and medium and heavy commercial vehicle (down 33.2% yoy) segments. While global commercial vehicle sales posted a decline of 4.7% yoy; global passenger vehicle volumes fell significantly by 26.6% yoy. On a mom basis though volumes recovered and registered a growth of 17.9%, primarily due to the attractive incentives offered by the company in the domestic passenger and commercial vehicle segments.

However, Jaguar and Land Rover (JLR) posted record sales in March 2013 at 42,682 units (impressive growth of 17% yoy) beating our expectations of 37,500 units. The growth was broad based driven by strong traction in the recently introduced models and aided by continued momentum in China. Both Jaguar and Land Rover recorded highest ever monthly sales during the month. Jaguar posted a robust 42.6% yoy growth driven by the model year 2013 products - XF Sportbrake, XF AWD and smaller engine variants of XF and XJ. Land Rover too registered a strong growth of 12.6% yoy led by easing of supply constraints on Evoque and Freelander and dispatches of the new Range Rover.

We retain our positive view on JLR and expect the company to sustain its growth momentum driven by Evoque and new product launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and AWD and smaller engine variants of XF and XJ models). We maintain our Buy rating on the stock with an SOTP based target price of Rs. 324.

Source : Equity Bulls

Keywords