Earlier in July, JLR (Jaguar Land Rover), which accounts close to 80% of Tata Motors’ overall revenues, reported retail sales of 74,067 units, 42% YoY.
Following COVID-19 crises India’s largest commercial vehicle manufacturer, Tata Motors Ltd, is expected to report a sizable loss for the June Quarter with a massive drop in its topline.
HDFC Securities suggests the homegrown vehicle manufacturer is expected to post a consolidated loss of around Rs6,500 crore for the June quarter.
The margins at JLR, Tata Motors’ British luxury car subsidiary would decline 80bps QoQ to 4%, while the company’s standalone business would see revenue decline of 80% YoY due to sharp drop in sales, brokerage estimates suggest.
On last year’s June quarter revenues of Rs61,500 crore, the company had reported a net loss of Rs 3,700 crore.
ICICI Securities estimates that Tata Motors’ topline would decline 49% YoY for the period. The brokerage expects JLR to post revenues of around GBP 2.3 billion, down 49% YoY. It expects JLR to report an operating loss of GBP 614 million for the June quarter.
JLR had pointed out the sequential improvement of sales through the quarter as the pandemic caused the temporary closure of its manufacturing units and most Europe retailers in April followed by much of May. Which being said, the retail sales in China, one of its largest markets, witnessed strong recovery during Q1FY21 as the sales were down only 2.5% YoY. The lockdown measures in China were lifted earlier than in other regions globally.
Meanwhile, in its standalone business, at 23,845 units, Tata Motors’ total domestic vehicle sales declined 82% YoY during the June quarter, following the shutdown of plants and dealerships from the last week of March following a strict COVID-19 lockdown.
In an official note issued in July, the company had said its manufacturing units resumed operations from the end of May, thereby losing two months of production and sales.
“We expect the company to report Ebitda loss of Rs 1,250 crore in its standalone business,” HDFC Securities said in a note.
Brokerages revealed volume recovery trends in major markets such as China, Europe and the USA for JLR along with the India business outlook are the two key areas to look out for in the coming quarters.

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