Tata Motors will report its fourth-quarter earnings on Monday and analysts expect the automaker to report a weak set of results this time.
- This time, in all likelihood, it could be the fourth consecutive quarter of a loss for Jaguar-LandRover (JLR). There has been no improvement as far as the year-on-year performance has concerned. The China pocket continues to be very weak and all of that will reflect in consolidated numbers.
- The street is expecting a revenue fall of 5.5 percent on a consolidated basis. The EBITDA to fall by about 16 percent. The profit range is very wide because there are several one-offs in this quarter’s numbers depending on who adjust which way, the profits could range anywhere from a loss of Rs 300 crore to a profit of Rs 2,100 crore. So it is important to look at the JLR numbers to get a sense of which way things are going.
- On that front, the analysts are expecting the revenues to fall by 5.7 percent for JLR at about 7.2 billion pounds. The margins will fall almost 300 basis points (bps) for JLR because of the problems that are being seen in China. So the overall volumes are down by 8 percent ex of China. China JLR numbers are down 50 percent year-on-year (YoY) and that has been the big problem pocket.
- Loss of 1 million pounds is expected for JLR versus the profit of 400 million pounds the same time last year. This loss will also be because of a onetime employee redundancy charge that the company had to incur this time around.