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Tata Motors' shares slip nearly 5% ahead of its Q4 earnings

Tata Motors' shares slip nearly 5% ahead of its Q4 earnings

Tata Motors' shares slip nearly 5% ahead of its Q4 earnings
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By Mousumi Paul  Jun 15, 2020 1:06:47 PM IST (Published)

Tata Motors' shares slipped neary 5 percent on Monday ahead of its March quarter earnings. CNBC-TV18 poll expects the car manufacturer to report weak performance across segments due to the lockdown imposed on account of COVID-19. 

Tata Motors' shares slipped neary 5 percent on Monday ahead of its March quarter earnings. CNBC-TV18 poll expects the car manufacturer to report weak performance across segments due to the lockdown imposed on account of COVID-19.

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The stock fell as much as 4.65 percent to Rs 100.40 per share on the NSE. At 11:30 am, the shares traded 4.13 percent lower to Rs 100.95. The auto stock has plunged 46 percent this year to current levels, but has recovered from its March low levels, by 61 percent.
According to the CNBC-TV18 poll, the consolidated revenue for the March quarter ended 2020 is expected at Rs 60,951 crore.
During the same quarter last year, the company had reported a revenue of Rs 86,422 crore.
The net loss expected in Q4FY20 is Rs 2,305 crore as compared to the profit of Rs 2,216 crore made last year.
The EBITDA (earnings before interest, tax, depreciation and amortization) is expected to decline 48 percent year-on-year (YoY) to Rs 4,365 crore.
The auto industry was already under a lot of pressure since 2018 and the recent lockdown added to that pain resulting into a massive slip in car sales and revenues. The management also lowered its guidance for this year due to the COVID-19.
Higher discounting levels and negative operating leverage will hit margins. Expect forex losses of 40 million pounds in Q4 v/s 127 million pounds loss in Q3FY20, said the CNBC-TV18 poll.
 
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