HOME > BUSINESS > AUTO > Reliance Securities sees JLR sales growth at 15%, sees margin pressures

Reliance Securities sees JLR sales growth at 15%, sees margin pressures

Despite the recent decline in profit margins, Tata Motors’ Jaguar Land Rover business will grow at an average rate of 15% in the current financial year and the next, said Reliance Securities. It also said the domestic business has surprised on the upside with recent results.

It said it expects JLR business to “remain on a strong footing” due to 1) new product pipeline remains very strong, 2) demand from China to pick-up 3) capacity expansion/JV with Chery and 4) expansion of the sales network.

tmp_18401-bolt804725371

Tata Motors reported a weak fourth-quarter with JLR missing margin estimates. In contrast, the company’s India business, which has seen new launches such as the Bolt and the Zest, surprised on the upside.

JLR reported weak EBITDA margin at 17.4%, down 1.14 percentage points when compared to the third quarter, because of negative movement in realized hedges and new launch related costs.

However, standalone division, largely the India business, posted a positive EBITDA margin after 5 consecutive quarters of losses. EBITDA or operating profit margin was 2.8%. Analysts were looking 0% margin, or break even.

Revenue for the standalone division increased by 27% yoy, led by strong realization growth owing to better product mix.

“Management highlighted that demand outlook for its products remain strong, however, the company remains in a transition phase impacting near-term performance,” Reliance Securities said.

Medium and heavy commercial vehicle revival has been on a robust footing with strong replacement demand aiding growth and management expects this trend to continue in FY16E, pointed out the broker.

“However, main revival would be seen once economic activity pick up pace; we build in a slow revival in its domestic business and forecast CV volumes to grow by 20% in FY16E. Overall, we expect the domestic standalone business to be profitable by FY16.”

Reliance Sec however trimmed its estimates due to what it called “some slowdown as well as margin pressures due to currency and launch related expenses.”

Follow ULTRA.news
Tata Motors reports strong wholesale numbers for November vs October The Tata Motors Group global wholesales in November 2017, including Jaguar Land Rover, rose 22% to 1.12 lakh. In October, it had risen 2.7% to 1.04 lakh and by 14% in September to 1,16,419.Wholesales of commercial vehicles rose 51% to 40,845. In October, it had risen 1.3% to...
Land Rover sales up 17%, Jaguar down 6% in November – Tata Motors Jaguar Land Rover said its retail sales in November rose 10% on year to 52,332 vehicles, driven primarily by the introduction of the new Land Rover Discovery and the Range Rover Velar.Out of these, Jaguar sales were 13,688 vehicles, down 6.3% compared to the same month ...
Tata Motors wholesales up 2.7% YoY in Oct, down MoM The Tata Motors said group global wholesales in October 2017, including Jaguar Land Rover, rose 2.7% to 1.04 lakh in October. In September, group global wholesale had risen 14% to 1,16,419.Wholesales of commercial vehicles, including Tata Daewoo, rose 1.3% to 37,400.Whol...
Tata Motors’ JLR retail sales flat in October as UK, US markets slow Tata Motors said its overseas subsidiary Jaguar Land Rover saw retail sales grow 0.2% in October to 46,418 vehicles.Jaguar retail sales were down 14.3% to 12,336 vehicles in October, primarily reflecting lower sales of the Jaguar XE, said Tata Motors.Land Rover retailed ...
Tata Motors’ pick-ups drive 5% increase in October sales Tata Motors Limited said it saw a 5% increase in the number of vehicles sold in India during October, driven by the commercial vehicle segment.Total sales were at 48,886 units.However, most of the growth came from light CVs and pick-ups. Both commercial and personal pass...
Tata Motors wholesales up 14% in Sept, Passenger up 10% The Tata Motors said group global wholesale rose 14% in September to 1,16,419, including numbers for Jaguar Land Rover.Commercial vehicle wholesales, including Tata Daewoo, rose 20% to 41,503.Global wholesales of all passenger vehicles in September 2017 were at 74,916, h...
Jaguar Land Rover retail sales up 6.6% in September – Tata Motors Tata Motors said retail sales for Jaguar Land Rover were 65,097 vehicles in September, up 6.6% compared to September 2016.This was primarily because of continued "solid sales" of the F-PACE as well as the introduction of the Range Rover Velar, Jaguar XF Sportbrake and long wh...
Tata Motors says strike over, no impact on Sept production Tata Motors has denied media reports that the production of commercial vehicles at its Jamshedpur plant was disrupted last week due to a strike.Media had reported that around 6,000 of the 10,000 workers at the company's Jamshedpur plant were protesting, and that this had bro...
Tata Motors’ Jaguar Land Rover sales up 4.3% in August Total retail sales for Jaguar Land Rover increased 4.3% to 38,519 in August, the company said.The increase was "primarily reflecting the introduction of the new Range Rover Velar and the long wheel base Jaguar XFL in China as well as continuing strong sales of Discovery Spor...
Hexa helps Tata Motors post 26% India sales growth in August Tata Motors passenger and commercial vehicles total sales including exports rose 14% in August, while domestic sales rose 26%.The company sold 48,988 vehicles in the month, out of which 45,906 were sold in India.It said it found "growing demand across segments and increa...
TVS Motor reports strong auto sales for July, Tata modest TVS Motor Company reported strong auto sales numbers for July, while Tata Motors had a more modest growth in the same month.TiagoTVS domestic scooter sales grew by 35.8% to 92,378 in July 2017.Motorcycles grew by 15.1% 109,427 in July 2017.However, moped sales ...
Tata Group wholesales down 2% in June, passenger up 1% The Tata Motors Group reported a 2% decline in global wholesales in June 2017.Total global wholesales for the month was at 90,966.The decline came from the commercial vehicle segment.Sales of commercial vehicles, including from Tata Motors and Tata Daewoo fell 8% ye...
Tata Motors domestic car sales up 27% in May, CV sales down 13% Tata Motors said it saw a 4% decline in its total passenger and commercial vehicle sales volumes in May 2017.Total number of vehicles sold (including exports) in the month was 38,361.The company’s domestic sales fell 3% to 34,461 nos.However, sales of domestic passeng...
Tata Motors global wholesale down 4% in April; cars up The Tata Motors Group global wholesales in April 2017, including Jaguar Land Rover, were at 73,691 nos., lower by 4%, over April 2016, the automaker said.Within this, commercial vehicle wholesales including Tata Daewoo were at 18,844, lower by 36%, over April 2016.Global...
Fitch Ratings upgrades Tata Motors on improving business performance JLR contributes most of the company's profitsFitch Ratings has upgraded its rating on Tata Motors by one notch, pointing to the automaker's improving business performance."The upgrade reflects the sustained improvement in TML's Indian automotive business over the last tw...
Jaguar Land Rover reports strong February 2017 sales Tata Motors reported its best ever sales performance for its UK unit for the month of February in 2017, with total retail sales up 9.3% on year for the month.Jaguar Land Rover, one of the world's top manufacturers of luxury vehicles, sold of 40,978 vehicles in the month, th...
Jaguar Land Rover sales up 11% in October Tata Motors' subsidiary Jaguar Land Rover reported its best-ever October retail sales of 46,325 vehicles, up 11% compared to October 2015."The month’s performance has been driven by strong sales of the Land Rover Discovery Sport, Range Rover Evoque, Jaguar XF and the introduc...
Tata Motors’ JLR credit rating upgraded by Moody’s Tata Motors said Moody´s Investors Service has upgraded the credit rating of its unit Jaguar Land Rover Automotive Plc. by one notch.The company´s overall family corporate rating has been moved from Ba2 to Ba1. Outlook remains positive.The Jaguar Lannd Rover is Tata Motor...
Jaguar launches second generation Jaguar XF sedan in India at Rs 49.5 lakhs Jaguar Land Rover India launched the new Jaguar XF sedan in five variants starting from ₹ 49.50 lakh (ex-Delhi) in Mumbai.The new Jaguar XF is powered by the new Ingenium 2.0 l 4-cylinder turbocharged diesel engine that delivers a power output of 132 kWand is upto 20 kg l...
Tata Motors global wholesale up 16% in August Tata Motors said its global wholesales rose 16% in August to 86,288 compared to August last year. Wholesales of all passenger vehicles rose by 25% to 56,104.Land Rover wholesales for the month were at 29,222 vehicles. Jaguar wholesales for the month were 13,038 vehicles....