Tata Motors - 4QFY2013 Result Preview - Angel Broking

Tata Motors (TTMT) will be announcing its 4QFY2013 results today. On a standalone basis, we expect TTMT's revenues to register a decline of ~39% yoy to Rs. 9,989cr following a ~30% yoy decline in volumes. The net average realization too is expected to decline by ~13% yoy on account of higher discounts and adverse product-mix. Led by lower volumes, adverse product-mix and higher levels of discounting, we expect the EBITDA margins to decline ~800bp yoy leading to a net loss of ~Rs. 490cr. Nevertheless, led by Jaguar and Land Rover (expected to post a strong revenue growth of ~17% yoy driven by a ~13% yoy growth in volumes), TTMT's consolidated revenue is expected to remain flat on a yoy basis at Rs. 50,605cr. Further, on the consolidated front, we expect the bottom-line (adjusted) to post a decline of ~35% yoy to Rs. 2,298cr as operating margins are expected to decline by ~70bp yoy to 12.5%. A higher depreciation expense and a higher tax rate are also expected to impact the bottom-line.

At the CMP of Rs. 296, the stock is trading at 7.5x FY2015E earnings. Currently, we have an Accumulate rating on the stock with a target price of Rs. 324.

Source : Equity Bulls

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