Latest news with #TataMotors'
Time of India
an hour ago
- Automotive
- Time of India
Tata Motors working with govt, looking alternate sources for magnets: Chandrasekaran
Mumbai: Tata Motors is working with the government and is also taking steps to procure magnets from alternate sources in the wake of China restricting exports of rare earth elements , company Chairman N Chandrasekaran told its shareholders on Friday. Responding to queries from shareholders on the impact of China's move to restrict exports of rare earth elements and shortage of magnets, he said, "As of now, this is not a concern, but this is something that we are watching very carefully." "As of now, we are okay. We are not facing are able to source the magnets that we need, and also we have plans for having the right level of inventory. We are working with the government. Also, we are working on sourcing from alternate sources," Chandrasekaran noted. China's restrictions on the export of rare earth elements and related magnets are affecting the domestic auto and white goods sectors. The automobile industry had sought government support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars. Live Events To another query on the impact of the ongoing Iran-Israel war on the company's business, he said, "It is very difficult to answer what will be a war kind of situation look like." However, he said Tata Motors group's three firms -- commercial vehicle, passenger vehicles and JLR -- have a very strong platform. "They will be able to tide over any of these geopolitical issues in the short term but are completely ready and poised for excellent growth and leverage the opportunity that this industry has to offer," Chandrsekaran asserted. Earlier in opening address, he said that going forward, volatility will continue to mark economic cycles -- from widespread geopolitical conflicts, military escalations, the redrawing of supply chains and tariff regimes, to AI and energy transition. Nowhere are all these disruptions visible more than in the automotive sector . "Given the enormous amount of work we have done over the past few years -- from simplifying the businesses to making big strategic bets to strengthening our financial position -- our businesses are structured to not just handle this environment, but to thrive," he asserted. Responding to a query on passenger vehicle business expansion in international markets, he said, "This is something that we are always in discussions but we are waiting for the right geopolitical environment to be able to launch but we are getting prepared." To another query on the completion of demerger of Tata Motors' commercial and passenger vehicle verticals into separate entities, Chandrasekaran said, "We think the demerger will happen in the last quarter of this year. "First, the PV company will list and then the CV company will list a couple of months later. It will happen, in our estimate, sometime around October-November-December quarter." Economic Times WhatsApp channel )
Economic Times
11 hours ago
- Automotive
- Economic Times
BNP Paribas gives Outperform call on Tata Motors; target price Rs 830
ET Online For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 121,012.00 Crore, up 4.89 % from last quarter Total Income of Rs 115,365.00 Crore and down .36 % from last year same quarter Total Income of Rs 121,446.15 Crore. Company has reported net profit after tax of Rs 8,442.00 Crore in latest quarter. The company's top management includes Mr.N Chandrasekaran, Wagh, Ramji, Puri, Sorensen, V Chowdary, Prakash Bhatt, Sangwan, Bhandarkar, Mr.P B Balaji, Kumar Gupta. Company has BSR & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 368.13 Crore shares outstanding. Investment Rationale Tata Motors has a diverse set of businesses that are at various stages of capex and have different accounting policies than peers. Hence, BNP Paribas thinks a blended valuation method taking the average of EV/sales, EV/EBITDA, EV/EBIT and P/E valuations normalises the impacts of these idiosyncrasies. Tata Motors' earnings are split into JLR, China JV, CV, PV, and India EV businesses. The brokerage's target valuation multiples for JLR are set by benchmarking to valuation multiples of BMW and Mercedes Benz. For the China JV, they use the valuation multiples of Brilliance China Automotive as the benchmark. Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel BNP Paribas Securities has outperform call on Tata Motors Ltd. with a target price of Rs 830.0. The current market price of Tata Motors Ltd. is Rs 674.4. Tata Motors, incorporated in 1945, is a Large Cap company with a market cap of Rs 2,46,742.40 crore, operating in the Auto sector. Tata Motors' key products/revenue segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Sale of services and Other Operating Revenue for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 121,012.00 Crore, up 4.89 % from last quarter Total Income of Rs 115,365.00 Crore and down .36 % from last year same quarter Total Income of Rs 121,446.15 Crore. Company has reported net profit after tax of Rs 8,442.00 Crore in latest company's top management includes Mr.N Chandrasekaran, Wagh, Ramji, Puri, Sorensen, V Chowdary, Prakash Bhatt, Sangwan, Bhandarkar, Mr.P B Balaji, Kumar Gupta. Company has BSR & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 368.13 Crore shares Motors has a diverse set of businesses that are at various stages of capex and have different accounting policies than peers. Hence, BNP Paribas thinks a blended valuation method taking the average of EV/sales, EV/EBITDA, EV/EBIT and P/E valuations normalises the impacts of these idiosyncrasies. Tata Motors' earnings are split into JLR, China JV, CV, PV, and India EV businesses. The brokerage's target valuation multiples for JLR are set by benchmarking to valuation multiples of BMW and Mercedes Benz. For the China JV, they use the valuation multiples of Brilliance China Automotive as the Paribas' target multiples for CV are similar to those of AL and for PV, it is at a 50% discount to BNP Paribas target multiple for MSIL, as Tata Motors' PV business margins reach the industry average. The brokerage values Tata Motors India EV business at the average of the valuation range of the last funding round, taken with a 60% discount to factor in the correction in global EV peers' valuation since then, weak sales and increasing competition. The company also has various subsidiaries and investments, which they value at a 30% holding company discount to the latest market price, where available, or at multiples similar to those of listed peers. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Hans India
2 days ago
- Automotive
- Hans India
Tata Motors bolsters presence in Qatar with launch of LPO 1622 bus
Doha: Tata Motors launched its all-new LPO 1622 bus in Qatar on Wednesday to strengthen its presence in the Middle East market. Developed specifically for staff transportation, the company's first Euro VI-compliant bus in the Middle East offers superior performance, enhanced passenger comfort, and low total cost of ownership, according to a company statement. The Tata LPO 1622 bus is powered by a reliable Cummins ISBe 5.6L Euro VI-compliant engine, delivering 220hp of power and 925Nm of torque. The bus is available in two seating configurations -- 65-seater and 61-seater -- offering flexibility for varied staff transport requirements. It features a full air dual-circuit braking system with ABS, tubeless radial tyres, and a heavy-duty suspension system to ensure safety, comfort, and road stability. The bus also comes equipped with a range of advanced features, including Electronic Stability Control, Hill Start Assist, Cruise Control, and a Multimode Switch to optimise performance across varied operating conditions. Asif Shamim, head of Tata Motors international business, said, 'The Middle East continues to be a strategic focus for Tata Motors, where our products have consistently delivered value across a range of applications. With Qatar being a key market, we are pleased to further strengthen our presence with the launch of the all-new LPO 1622 bus, designed to offer higher profitability to customers and superior comfort to passengers' Tata Motors also unveiled an enhanced range of world-smart, Euro-V compliant Prima range of heavy trucks designed and engineered to suit the country's growing infrastructure and construction requirements. The range includes the advanced Prima 4040.K, Prima 4440.S, Prima 4040.T and the Prima 6040.S. Tata Motors offers a wide commercial vehicle portfolio in over 40 countries, spanning sub-1-tonne to 60-tonne cargo vehicles and 9-seater to 71-seater mass mobility solutions. Backed by Tata Motors' advanced R&D capabilities, these vehicles are robustly engineered and rigorously tested to suit local market requirements, the statement added.
Mint
3 days ago
- Automotive
- Mint
Tata Motors' JLR navigates a tougher road in FY26
Tata Motors Ltd has started FY26 on a bumpy road, with its key subsidiary Jaguar Land Rover (JLR) navigating multiple headwinds — from US tariffs and tough market conditions in China to ongoing uncertainty around the electric vehicle (EV) transition. It's not entirely surprising, then, that at its latest investor day, JLR's management scaled back expectations on crucial parameters. It now expects an FY26 Ebit (earnings before interest and tax) margin of 5-7%, around 300-500 basis points lower than its earlier guidance. This is also well below the 8.5% margin recorded in both FY24 and FY25, its strongest performance in recent years, according to the company's presentation. 'The margin guidance at the mid-point assumes that the US-UK trade deal will be effective from the date of announcement (8 May 2025) and that the US-EU deal will be signed before the end of the 90-day tariff pause (14 July 2025)," said a report by BNP Paribas Securities, adding, 'Any delay on these deals poses a downside risk to the guidance." Read this | Incentives for JLR's senior executives are now linked to Tata Motors's market performance JLR's FY26 revenue guidance is at £28 billion, as against £29 billion clocked in FY25. A mix of lower margin and higher working capital needs are expected to weigh on free cash flow (FCF). JLR has lowered its FY26 FCF guidance to close to zero from £1.8 billion earlier. This is a significant drop from FCF of £1.5 billion in FY25 and £2.3 billion in FY24. In view of this, some analysts have cut their earnings estimates. 'While our estimates were already lower than the consensus, we have reduced our FY26 Ebit margin assumption for JLR to 6% (earlier 6.9%), which has led to a 10% cut in our FY26 earnings estimates," said a Motilal Oswal Financial Services report dated 17 June. The broking firm has maintained its FY27 estimates at this stage. In response, JLR is taking various initiatives to improve efficiencies across the firm, which should result in cost savings worth £1.4 billion annually over the coming years. With this, it aims to improve Ebit margin to 10% over time. What augurs well is that JLR has maintained its investment spends guidance of £18 billion over FY24-28, funded from its operating cash flow. Around 50% of this amount is expected to be invested in engineering and the rest in facilities, tooling, etc. JLR remains central to Tata Motors' overall performance, as it contributes a significant portion of the company's business. In FY25, JLR accounted for 71% of Tata Motors' total consolidated revenue and 80% of profit before exceptional items. Reflecting JLR's weak outlook, Tata Motors' shares have declined about 10% so far in 2025, compared with a 5% rise in the benchmark Nifty50. Read this | Jaguar Land Rover tariff hit compounds Tata Motors' domestic woes The company had held another investor meet recently to discuss its domestic businesses where it set targets to improve market share and margin in commercial vehicle (CV) and passenger vehicle (PV). But execution is paramount given the weak demand conditions and rising cost pressures. As per Kotak Institutional Equities, market share loss in domestic CV and PV businesses remains an area of concern. Tata Motors believes that the demerger of its CV and PV businesses will help sharpen the focus on each segment. The demerger of the CV business is expected to be completed sometime between September and December 2025. Also read | Tata Motors plans a premium push as competition intensifies in EV space Taken together, there is little for investors to get excited about at this stage. In the absence of clear triggers, Motilal Oswal has maintained its 'Neutral' rating on the stock, with a sum-of-the-parts-based target price of ₹690 based on FY27 estimates. Tata Motors shares closed at ₹675 on Tuesday.
New Indian Express
3 days ago
- Automotive
- New Indian Express
Tata Motors stock declines amid JLR margin concerns
CHENNAI: Tata Motors' stock experienced a notable decline over the past two trading sessions, driven by revised financial forecasts from its British subsidiary, Jaguar Land Rover (JLR). The stock fell 0.82% to a low of ₹681.20 on the BSE at 10.44 am in Tuesday's opening trade, marking a cumulative drop of approximately 8% over four consecutive sessions. On Monday (June 16), the shares declined by 5.2%, closing at ₹674.70 on the BSE. Key factors influencing the decline include JLR's revised financial outlook and the impact of U.S. tariffs. JLR lowered its EBIT margin forecast for FY26 to 5–7%, down from the previously expected 10%. The revision reflects increased capital expenditures, product transitions, and a stronger focus on electric vehicle (EV) development. In addition, the imposition of a 25% US import tariff on foreign-made vehicles has negatively impacted JLR's profitability. As a result, the company has temporarily halted shipments to the US—a market that accounts for more than a quarter of its sales—and is exploring alternative markets and pricing strategies.
