Tata Motors on Monday reported a 49 percent decline in consolidated net profit to Rs 1,108.66 crore for the quarter ended March 31, mainly due to lower revenues and exceptional charge on account of its British arm Jaguar Land Rover.

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The revenue of the company fell Rs 86,422 crore in the fourth quarter compared to Rs 89,928.97 crore in the same quarter last year. The operating profit or EBITDA (Earnings before interest, tax, depreciation and amortisation) was at Rs 8,449.5 crore, while the margin stood at 9.8 percent.

JLR revenue for Q4 was at £7,134 million helped by rising sales in the UK and the US. This was, however, down £421 million year-on-year as weaker China market conditions were partially offset by growing demand in key markets like the UK and US.

Brokerages have a mixed view on the stock. Citi Research gave a 'buy' rating with a target price cut to Rs 220 from Rs 230 per share earlier. Meanwhile, Morgan Stanley and Motilal Oswal gave 'neutral' call on the stock.

CLSA recommended 'sell' with a target price at Rs 150 per share saying that the JLR (Jaguar Land Rover) outlook remains weak.

The research firm said, "Indian business margin slipped QoQ despite higher volume. JLR margin guidance cut and cash flow outlook for FY21 looks weak as guidance cut underlines challenges of improving profitability."

Thus, it cuts EPS (Earnings per share) estimates for FY20-21 by 18-22 percent.

Meanwhile, Citi Research recommended 'buy' with a target price cut to Rs 220 from Rs 230 per share.

The brokerage said that the domestic EBITDA of Rs 1,354 crore is 11 percent below estimates due to elevated capital expenditure. The domestic business balance sheet reflects improvement with declining inventory levels.

"H1FY20 outlook is expected to remain muted. In China, inventory is still high at 1.8 months despite volume cuts," it added.

First Published:May 21, 2019 9:30 AM IST