Tata Motors likely to announce dividend along with its Q4 results

The company told the stock exchanges on May 4 that its board would meet on May 12 to consider declaring a dividend for shareholders.

“We hereby inform that a Board meeting of the Board of Directors of Tata Motors Limited (‘the Company’) is scheduled to be held on Friday, the 12th May, 2023. Proposing, inter alia, to recommend declaration of dividend on the Ordinary Shares and ‘A’ Ordinary Shares of the Company for the financial year ending March 31, 2023 for the approval of the shareholders at the forthcoming 78th Annual General Meeting of the Company, ” Said Tata Motors In its regulatory filing.

Tata Motors’ domestic commercial vehicle and passenger vehicle sales grew by 35 per cent and 45 per cent in FY23 over the previous year.

The company posted its first quarterly profit in two years in the December quarter on increased demand for passenger cars as well as medium and heavy commercial vehicles. It reported a consolidated net profit of 2,957.71 crore for the third quarter ended December (Q3FY23).

Tata Motors last December announced its plan to take Tata TechnologiesAn engineering and digital services company, in which it has a 75% stake, is public and will use the cash flows the IPO will generate to achieve its debt reduction target.

Tata Motors is expected to report good numbers for the quarter ended March on Friday, led by margin expansion across all divisions and tracking a recovery in wholesale volumes in strong India and JLR.

According to brokerage Motilal Oswal, India business performance remains healthy led by strong growth in PV and CV in 4Q. Whereas, JLR volumes are expected to increase year-on-year due to easing chip shortages.

“We forecast an EBIT margin of 5.3% for JLR in 4QFY23, supported by mix, easing RM costs and cost controls,” it said.

EBIT margin for CV is likely to expand by 210 bps QoQ to 8.1%, driven by operating leverage, while it is likely to contract by 20 bps QoQ to 1.5% for PV.