Swadeshi Auto Major Tata Motors Ltd. (TML) on Monday reported widening consolidated net loss ₹4,441 crore for the second quarter ended September 30, following a semiconductor shortfall due to higher spending and lower sales of its British arm JLR.
The company had reported a consolidated net loss of ₹314 crore in the same period of the previous financial year. Jaguar Land Rover’s (JLR) revenue in the second quarter was £3.9 billion and a pre-tax loss was £302 million.
“JLR believes that the worst of the chip is behind and volumes should gradually improve over 2H. It has good demand, strong order book and is expected to launch the next generation RR/RR-Sport. Volumes should pick up. India’s business should continue to improve sequentially on the back of improving demand, market share gains and better margins.’ ₹625.
JLR wholesale sales in the second quarter were 64,032 units, down 12.8% from the year-ago quarter, and retail sales, including the China joint venture, were 92,710 units, down 18.4%, due to a decrease in semiconductors and lower retailer inventory. reflecting, the company said.
“JLR’s order book remains strong at 125,000 units, while dealer inventory is at a historically low level. New generation products like RR/RR Sport are likely to be launched in the coming quarters. Chip supply should improve further, but at a slower pace than expected,” said Emkay. The brokerage has a buy rating on the stock with a target price. ₹550 per share.
However, Emkay sees production delays due to supply issues, lackluster luxury car demand in target markets, slow macro recovery in India, failure of new launches, and unfavorable currency/commodity prices as key risks for Emkay Semiconductors. Is.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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