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Tata Motors’ Q2 results: Weakness in JLR business to affect topline

Updated : October 31, 2018 11:13:08 IST

Auto major Tata Motors is set to announce its quarterly results on Wednesday. The stock has been the worst performing stock in the auto sector this year, with a loss of more than 60 percent odd. It is expected that the company will see another weak quarter this time.

Here is what one should expect from the company today:
  • The Q2 earnings are expected to be much muted due to slowdown in Jaguar-Land Rover (JLR). The volumes are likely to be down 20 percent year-on-year(YoY) for JLR as the Chinese market has slowed down substantially. All of this will put pressure on the topline.
  • EBITDA margins are expected to fall 300 basis points, led by negative operating leverage YoY. One basis point is a hundredth of a percentage point.
  •  The operating cost has increased due to fixed cost inflation, higher R&D and higher raw material cost.
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