ICICI Securities: Tata Motors’ Focus Is On Deleveraging And Profitability
A pedestrian walks past a Tata Motors Ltd. showroom in Chennai, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Tata Motors’ Focus Is On Deleveraging And Profitability

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Tata Motors Ltd.’s Q2 FY21 operational performance was better than consensus estimates as consolidated Ebitda margins came in at 10.5% (down approximately 160 basis points YoY) even as revenue dropped 16% YoY.

Strong net debt reduction aspiration led by free cash flow generation (Q2 FCF approximately Rs 67 billion) is top priority (ahead of capex) for the management.

We believe improving capex efficiency across businesses would be critical; access to incremental capital should be contingent on the business segments right to win.

Click on the attachment to read the full report:

ICICI Securities Tata Motors Q2FY21 Results Update.pdf


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