Tata Motors - March 2013 Results Preview - Motilal Oswal

- Expect JLR volumes to grow 16.8% YoY (+20.8% QoQ) led by (1) recent launch of Jaguar variants (smaller engines, AWD and XF sportsbrake), and (2) ramp-up of new Range Rover.

- JLR EBITDA margin should rise 80bp QoQ on higher volumes, better mix (new Range Rover) and lower discounts.

- Standalone volumes are likely to decline 31.5% YoY (-4% QoQ) led by 45.9%/63.4% YoY decline in MHCVs/PVs, but LCVs growing 11% YoY. Standalone margins should improve 110bp QoQ to 3.3% (-620bp YoY).

- Expect TTMT's consolidated revenue to rise 7.8% YoY (+19.0% QoQ), margin to decline 110bp YoY (-10bp QoQ), and PAT to decline 38.3% YoY (+58% QoQ) to INR27.4b.

- We have cut our FY14E/FY15E EPS by 7%/5.2% respectively.

- The stock trades at 8x/6.9x FY14E/FY15E EPS respectively. Maintain Buy.

Source : Equity Bulls

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