Motilal Oswal: Tata Motors Q1 Results - Expect Gradual Recovery In FY21, But Positive Free Cash Flows From Q2
A logo sits on the front of Tata Motors Ltd.’s new Nexon sports utility vehicle SUV during a launch event in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

Motilal Oswal: Tata Motors Q1 Results - Expect Gradual Recovery In FY21, But Positive Free Cash Flows From Q2

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

Motilal Oswal Report

Tata Motors Ltd. had its toughest quarter ever with net consolidated losses of Rs 84 billion as both Jaguar Land Rover and India business were badly hurt by Covid-19 related lockdowns.

Unwinding of working capital and weak operating performance led to consolidated (auto) free cash flow (FCF) being negative at approximately Rs 182 billion.

However, it expects positive FCF in both businesses Q2 FY21 onwards. Recovery in both businesses is critical for net debt reduction (Rs 678 billion, increase of Rs 196 billion QoQ).

Sharp volume decline, adverse mix and higher fixed cost led to the fourth consecutive quarter of Ebitda loss (approximately Rs 7 billion versus estimate approximately Rs 11.7 billion).

The beat was led by 10% YoY increase in realizations (due to higher spare contribution) and cost savings of Rs 5.4 billion. Adjusted net loss was at approximately Rs 21.4 billion (and approximately Rs 13.6 billion in Q1 FY20).

Consolidated net debt (auto) increased by Rs 196 billion QoQ to Rs 678 billion.

Click on the attachment to read the full report:

Motilal Oswal Tata Motors Q1FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.