Tata Motors flat ahead of Q1 results; here’s what to expect

New Delhi: Shares of Tata Motors traded flat in Friday’s morning trade ahead of the company’s financial result for the quarter ended June 30 later in the day.

The scrip was up 0.10 per cent at Rs 103.75, while the benchmark BSE Sensex was down 0.11 per cent at 37,696 at around the same time.

An assessment by Emkay Global Financial Services projects a net loss of Rs 6,951 crore in Q1 FY21 for the auto major against net loss of Rs 3,452 crore in the corresponding quarter last year. The brokerage also sees around 51.70 per cent YoY drop in net sales during the same period.

“We expect consolidated revenues to decline YoY due to a fall in JLR and standalone revenues. JLR’s GBP revenues are expected to decline by 47 per cent due to a 42 per cent drop in volumes,” Emkay said.

Edelweiss Securities sees a net loss of Rs 8,713 for Tata Motors in Q1 FY21.

“We expect consolidated revenue to fall around 62 per cent YoY due to weakness across India and JLR. EBITDA margins at JLR are expected to decline to around -4 per cent due to impact of impact of negative operating leverage mitigated slightly by the UK’s government’s salary support programme,” Edelweiss said in a report.