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TATA MOTORS LTD.

NSE : TATAMOTORSBSE : 500570ISIN CODE : INE155A01022Industry : Automobiles-Trucks/LcvHouse : Tata
BSE197.25-0.25 (-0.13 %)
PREV CLOSE ( ) 197.50
OPEN PRICE ( ) 198.15
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 804157
TODAY'S LOW / HIGH ( )195.85 199.45
52 WK LOW / HIGH ( )106 239.3
NSE197.30-0.25 (-0.13 %)
PREV CLOSE( ) 197.55
OPEN PRICE ( ) 197.25
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 197.30 (37287)
VOLUME 18204088
TODAY'S LOW / HIGH( ) 195.70 199.45
52 WK LOW / HIGH ( )106 239.35
AnalystEmailIdnaveen.dubey@narnolia.com
AnalystNameNaveen Kumar Dubey
BSECode500570
CP1DesignationCEO & MD
CP1NameMr. Gunter Butschek
CP2DesignationCEO, JLR
CP2NameMr. Ralf D. Speth
CP3DesignationGroup CFO
CP3NameMr. P B Balaji
CallDate25 Oct 2019
DescriptionJLR: China has seen improvement and retails were up by 24%YoY whereas other geographies have seen a decline of 19%YoY. Retail stock levels have reduced to lowest levels since 2017. The company has new product launch pipeline in order to improve sales mainly in China, including Range Rover Evoque and Defender. The company is expected to achieve the GBP 2.5 bn Project Charge benefits ahead of March 2020 as it has already achieved GBP 2.2 bn by 1HFY20. (GBP 1.3 bn from Investment, GBP 0.5 bn from working capital and GBP 0.5 bn from cost & profits). Outlook: The demand outlook continues to remain challenging led by Brexit and trade war. The management expects the situation to improve gradually going ahead. EBIT margin to remain in the range of 3-4% for FY20-21, 4-6% for FY22-23 and 7-9% beyond FY23. Investment spending for FY20: GBP 3.8bn, FY21: GBP 4bn, FY22-23: upto 4bn and 11-13% of revenue beyond FY23. Free cash flow is expected to remain negative till FY21 and it will be positive beyond FY21. Gross Debt/EBITDA will remain less than 2.8x in FY20-23 and it will come down to 2x beyond FY23. Standalone Business: Lower MHCV volumes and adverse product mix led to sharp decline in profitability of the company. In addition to that company has reduced Rs. 3400 crores of stocks from the system to minimise BS-IV obsolescence risk. (Rs.900 crores at Tata Motors Limited and Rs.2500 crores at dealer levels). The capex will be around Rs.1200 crores in FY20 and it will largely be tilted towards new product development and BS-VI transition. Dealer stock levels in CV stands at 35 days. The company has gained 120bps market share in MHCV space while lost 290bps market share in SCV space in 1HFY20 over FY19. The Eastern corridor of DFC will have muted impact on truck sales as large part of commodity transportation happens through rails only while Western corridor may see single digit market share shift towards railways from roadways due to large container traffic. On the PV side the company lost 200 bps market share in passenger cars and 90bps in UVs. Dealer stocks at PV stands at 48 days and the management expects it to reduce to 30-32 days. Outlook: The demand situation has improved on retail side but it will be wait and watch for post festive season. EBIT margin to remain volatile for FY20-21, 4-6% for FY22-23 and 5-7% beyond that. Free cash Flows to become positive from FY22 onwards. On Electric Vehicles: The company has partnered Tata Power to set up Charging infrastructure and set up 40-50 chargers across 5 cities. The company will launch Nexon Ev in next 6 months.
SubjectQ2FY20 EARNING CONFERENCE CALL

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