Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 105286.96 Crore) operating in Auto sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 89319.34 Crore, up 16.96 % from last quarter Total Income of Rs 76365.79 Crore and up 41.65 % from last year same quarter Total Income of Rs 63057.43 Crore. Company reported net profit after tax of Rs -7510.85 Crore in latest quarter.
Investment Rationale
Chip manufacturing was impacted by fire incident with Japanese supplier (potentially Renesas electronics) and issues due to snow storm in Texas based suppliers (potentially Infineon technologies, NXP Semiconductors, Samsung). JLR expects these issues to be resolved in H2. However, resolution of industry wide chip shortage issue could take longer (12-18 months) as new capacities start in CY22. New launches (new RR likely in Q4FY22/Q1FY23) are unlikely to be delayed. Management would prioritize production of higher margin vehicles for chip supply available as well as make product specification changes to mitigate the impact.
Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of March 31, 2021, while FIIs held 13.8 per cent, DIIs 12.1 per cent and public and others 27.8 per cent.
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