Views on Tata Motors 4QFY2015 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Tata Motors 4QFY2015 Results:

Tata Motors 4QFY2015 results were below estimates on account of lower than expected operating performance at JLR and MTM loss provisioning at JLR (on commodity hedges and revaluation of foreign currency debt). Consolidated revenues at INR 67,576 cr were in line with estimates. However, Tata Motors disappointed on the operating front reporting a margin of 12.5% as against our expectations of 15.9%. Domestic operations surprised positively (with margins at 1.5% which is higher than our expectations of -1.9%). However, JLR margins at 17.4% were lower than our estimate of 19.2% which dragged the overall margin performance. Also, JLR realized MTM loss on commodity hedges and revaluation of foreign currency debt to the tune of GBP 220 mn (about INR 2,100 cr) which further dented profitability. Adj PAT at INR 1,824 cr was significantly lower than our estimate of INR 4,481 cr. currently, we have BUY rating on the stock but would review our estimates post interaction with the management.

Shares of TATA MOTORS LTD. was last trading in BSE at Rs.442.6 as compared to the previous close of Rs. 452.15. The total number of shares traded during the day was 1375054 in over 14458 trades.

The stock hit an intraday high of Rs. 448.65 and intraday low of 439.25. The net turnover during the day was Rs. 610309204.

Source : Equity Bulls

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