Tata motors product-cars

The stock gained 38 percent during the June quarter following recovery in equity markets and value buying due to a sharp fall in March crash.

Covid-19 pandemic adversely impacted sales of Tata motors both in India and abroad as it reported a consolidated loss of Rs 8438 crores for the June quarter on Friday. The home-grown auto major forecasts an uncertain outlook for the year citing increasing infections and intermittent lockdowns in many countries. However, it expects a gradual recovery of demand and supply in the coming months.

Total revenue from operations fell significantly to Rs 31983.1 crore in Q1 FY21 from Rs 61,467 crore in Q1 FY20 and due to higher gross borrowing in the same period Finance cost increased by Rs 165 crore to Rs 1877 crore.

EBITDA margins impacted due to adverse mix and negative operation leverage, the company said.

In the Tata Motors segment, CV retails stood at 3.1K. Market share in MHCV rose 1,440 bps as compared with FY20.

PV retails stood at 18.6K. Market share in passenger cars rose 840 bps and UVs rose 50 bps as compared with FY20.

Jaguar Land Rover’s (JLR’s) net revenue declined 44 percent to 2.9 billion pounds in Q1 FY21, company said COVID-19 resulted in temporary retailer and plant shutdowns, significantly impacting sales and profits.

Retail sales of 74,067 vehicles in the segment declined 42.4 percent YoY but improved month by month through the quarter with June down 24.9 percent, said the company.

A cash improvement program of Rs 6000 crore along with a cost improvement program of Rs 1500 crore has been announced by Tata motors. The company expects the CAPEX to be around Rs 1500 crore for FY21.

These actions taken by the company is expected to improve the cash flows of the company for the remaining year and expects to end the FY21 with positive free cash flows.

Guenter Butschek, CEO and MD, said in an earnings release. The Covid-19 pandemic has deeply affected the auto industry in Q1FY21. We see some disturbance due to the intermittent shutdowns and supply chain blockages. We have noticed some green shoots arising in PV owing to some pent up demand pre COVID, and are optimistic for a full recovery of the CV industry by end of the fiscal year, with a gradual
pickup of demand, aligned to the economic recovery,


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