Q3 Results Preview: Tata Motors set to report profit; Bajaj Auto's December quarter net profit to jump over 12%

Both auto companies are likely to report healthy Q3 earnings helped by easing in raw materials prices, higher realisations and healthy demand during the reporting quarter.

Earlier today, Maruti Suzuki set the stage for auto sector earnings by registering nearly 130 per cent YoY growth in Q3 net profit - Image Source: Reuters

Auto majors Tata Motors and Bajaj Auto will announce their earnings for the October-December quarter of FY23 on Wednesday, January 25, 2023.

Both auto companies are likely to report healthy Q3 earnings helped by easing in raw materials prices, higher realisations and healthy demand during the reporting quarter.

Tata Motors Q3 Results Preview

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On a consolidated basis, Tata Motors’ loss during the December quarter of FY23 is expected to report a profit of Rs 530 crore from Rs 1,516 crore the company reported in the year ago period. Meanwhile, revenue may jump by 14.5 per cent to Rs 82,710 crore in Q3FY23 against Rs 72,229 crore in Q3FY22, as per Zee Business research.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Tata Motors may grow around 31 per cent to Rs 8,850 crore in the third quarter of FY23 against Rs 6,764 crore in a year ago quarter, whereas the margins are likely to surge by 130 basis points to 10.7 per cent from 9.4 per cent YoY.

Also Watch: Tata Motors Q3FY23 Results: How Much Profit Is Possible In The December Quarter?

Tata Motors’ total volumes grew by 17.9 per cent year-on-year to 2,23,365 units in the December quarter from 1,89,531 units in the corresponding period in FY22.

Realisations are likely to increase by 4.5 per cent for Jaguar and Land Rover brands on improvement in chip availability; Commercial and passenger vehicles realizations for India business is expected to increase by 27 and 2.3 per cent aiding growth in top line.

Bajaj Auto Q3 Results Preview

Bajaj Auto’s profit after tax (PAT) may rise by 12.4 per cent YoY to Rs 1,365 crore from Rs 1,214 crore, while revenues may come flat YoY at Rs 8,950 crore in Q3FY23 against Rs 9,022 crore in the December-ended quarter of the previous fiscal.

The EBITDA could surge by 16.17 per cent YoY to Rs 1,595 crore in Q3FY23 as compared to Rs 1,373 crore in Q3FY22 while margins may grow by 260 bps to 17.8 per cent from 15.2 per cent YoY due to easing of raw material prices and currency benefits.

Also Watch: Bajaj Auto Q3FY23 Results: How Will Be The Results Of Bajaj Auto In Q3?

Tata Motors' shares ended as top Nifty and Sensex gainer. The stock grew more than 3 per cent to Rs 422 apiece, whereas Bajaj Auto's share price jumped over 1.5 per cent to Rs 3,684.05 per share on the NSE.

Earlier today, Maruti Suzuki set the stage for auto sector earnings by registering nearly 130 per cent year-on-year (YoY) growth in the net profit to Rs 2,351 crore in the December-end quarter of FY23, while the revenues surged by almost 25 per cent and margins too expanded on YoY basis.

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