JLR recovery to pace Tata Motors; deleveraging a key trigger
Tata Motors reported market share improvement in the passenger vehicles (PV) segment. In addition, improving freight demand and high truck fleet utilization auger well for commercial vehicles (CV) business.
Synopsis
The operating margin before depreciation and amortisation (EBITDA margin) of JLR dropped by 620 basis points sequentially to 6.3 per cent because of lower sales volume, lower production of superior margin products, volume reduction in the Chinese market and higher input costs.
ET Intelligence group: Tata Motors missed the street's earnings expectations by a wide margin for the June quarter. This was on account of the weak performance by its UK subsidiary Jaguar Land Rover (JLR) which contributed about 70% to the consolidated revenue. The reaction on bourses was measured however with the stock losing around 1% on Thursday, a day after the result declaration. This was driven by the company’s guidance of a substantial