Tata Motors — ✅ خرید وی پی ان ❇ ip ثایت vPn آی پی اختصاصی ◐

جولای 28, 2022

Tata Motors expects JLR demand to stay strong

Tata Motors Ltd expects its British luxury brands Jaguar Land Rover to post a five-quarter-high production in the September quarter (Q2FY23), outweighing a “disappointing” performance in the first quarter of the financial year, according to a senior company executive. Demand for JLR’s premium and luxury brand of cars are expected to remain strong in the UK, Europe and even China, despite concerns of high inflation and geopolitical uncertainties. Wholesales or factory dispatches of JLR vehicles suffered in the June quarter due to a slower-than-expected ramp up of production of the new Range Rover and Range Rover Sport range, and severe supply constraints emanating from a chip shortage and lockdowns in China. A 6% sequential decline in wholesales swelled the company’s order book further to 200,000 units. On Wednesday, Tata Motors reported a widening consolidated net loss to ₹4,951 crore for the June quarter, from a ₹4,450.92 crore loss a year earlier, primarily on account of pressures faced by JLR. “The loss before tax in the quarter was £524 million before a £155 million favourable exceptional pension item. The loss primarily reflects lower wholesale volumes with weaker mix, as well as unfavourable inflation £161 million and currency and commodity revaluation £236 million year-on-year. The EBIT margin was (4.4)% reflecting the lower volumes and unfavourable mix. Free cashflow was negative in the quarter £769 million, primarily reflecting £616 million of unfavourable working capital movements,” Tata Motors said in a statement. However, with the worst of the China lockdowns and supply chain disruptions behind, JLR is expected to ramp up production to 90,000 units in the September quarter, the highest in the last five quarters. P.B. Balaji, group chief financial officer, Tata Motors, said demand is expected to hold up well for JLR even as inflation concerns play out as the twin brands’ customer base in the premium and luxury segments is better shielded from the shocks. Moreover, Balaji said, the company is well-catered to as far as demand is concerned because of its massive backlog of orders. Back home, Tata Motors is in advanced stages of closing a deal to acquire Ford India’s manufacturing facility in Sanand, Gujarat, for the production of its passenger vehicles. The factory will give Tata Motors an additional annually production capacity of 240,000 units .
Tata Motors is expanding production at its existing plants to nearly 50,000 units a month. The company also has “much better visibility in terms of chip availability”, Balaji told reporters during a conference call. The additional capacities will give Tata Motors the runway to produce its upcoming EV platforms Curvv (an EV-first platform) and the AVINYA ground-up EV in the next two-three years. For commercial vehicles, Tata Motors expects demand to improve as commodity prices stabilize and construction activity rebounds. “We are expecting things to come back to normal mid- August onwards. High fuel prices and interest rates were some factors on the negative side, but we see commodity prices stabilizing and a pause in price increases, which we saw in the last two years, adding to demand stability. We are also seeing buses come back strongly now, and the M&HCV and construction segment is doing well,” Balaji said.

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ژوئن 17, 2022

Tata Motors taking right actions to navigate challenges: N Chandrasekaran

In his address to shareholders in the company’s annual report for 2021-22, he said the company’s three independent business units — commercial vehicles, passenger vehicles and Jaguar Land Rover — are self-sustaining and the automaker is confident that it would get to near zero net automotive debt by FY24.

“Recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages and more. Decades of experience has been squeezed into two dizzying years. Businesses have had to cope with this unprecedented sequence of events with speed and agility,” Chandrasekaran wrote.

He pointed out supply chain issues and runaway commodity inflation as major hurdles among the multiple challenges faced.

“While the near-term outlook is fluid with multiple challenges that I outlined above, the business is taking the right actions to navigate them, and I am confident that we will emerge stronger,” the Chairman added.

Asserting that Tata Motors is “taking concerted actions to be future ready and create a virtuous cycle of growth and returns for our shareholders”, he said, “I would like to welcome you on this journey.”

Despite margins being impacted by supply chain issues and runaway commodity inflation, he said, “Our India business ended with strong free cash flows of ₹1,879 crore. We are committed to restoring the profitability of this business as it returns to competitive growth and inflation stabilises.”

With Tata Motors Group now operating as three independent business units of commercial vehicles, passenger vehicles and Jaguar Land Rover, he said it has offered differentiated value propositions to their different customer segments whilst leveraging backend and corporate synergies wherever possible.

“This has made Tata Motors lean, nimble and customer centric. Each of these businesses are self-sustaining, which gives me the confidence that we will get to near zero net automotive debt by FY24,” Chandrasekaran said.

Looking beyond the near-term challenges, he said, “Jaguar Land Rover is in a strong position with a portfolio of attractive premium luxury products, a healthy customer order bank, low break-evens, and the right future ready strategy to support its distinctive and renowned British brands in a rapidly changing legislative and commercial landscape.”

Chandrasekaran noted that the global shortage of semiconductors had a disproportionately adverse impact on JLR’s production and sales compared to its competitors. “Even though we took various steps to address the issue, the situation continues to remain challenging. This is a key issue facing Jaguar Land Rover and we are working assiduously to address the same during FY23. This should aid a gradual recovery in performance through the year,” he stated.

On JLR outlook, Tata Motors said while the COVID-19 lockdowns in China as well as the new Range Rover Sport model changeover are expected to limit volume improvements in Q1 of FY23, the company expects volumes to improve progressively thereafter, and “we target to achieve a 5 per cent EBIT margin and (over) 1 billion pound positive free cash flow in FY23.”

On the passenger vehicles business outlook, the homegrown auto major said the vertical is expected to deliver strong improvement in margins and profitability in FY23 and the company will continue to drive strong sales performance whilst improving profitability and managing supply bottlenecks.

The PV business will continue to step-up new product launches and enhance capacities to cater to increasing demand, it said, adding that despite significant step-up in investments, the business is expected to remain self-sustaining.

As for commercial vehicles (CV), Tata Motors said the industry is poised for further growth on the back of increased activity in road construction, mining and improved infrastructure spending. The supply situation continues to show gradual improvement.

Despite uncertainties, business sentiments continue to be positive with increasing fleet utilisation levels and freight rates, it added.

However, sharp commodity inflation continues to remain a challenge.

The company said it will continue to step-up its investments in products and new business models to deliver customer value while ensuring profitable growth.

“Despite near-term supply challenges and inflation concerns, the business aims to deliver strong margins recovery and profitability in FY23,” it added.

Tata Motors Executive Director Girish Wagh said in FY22, unprecedented commodity inflation impacted the CV business margins and the company responded to the challenge by accelerating and intensifying cost reduction efforts, reviewing every cost element and taking pricing actions, towards profitability improvement. Improving profitability is an important priority.

Reiterating Tata Motor Group’s commitment to sustainable mobility, Chandrasekaran noted that the shift is irreversible and the company will be amongst the leaders of green mobility globally as it targets net-zero emissions by 2039 for JLR, 2040 for PVs and 2045 for CVs.

“Actions are already underway to deliver the same,” he informed the company members.

In India, EV penetration in the company’s portfolio is likely to increase further to 25 per cent in five years from 7.4 per cent as of Q4 of FY22, Chandrasekaran said. By 2025, Tata Motors will have 10 EVs, he added.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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می 31, 2022

Converting old cars into electric vehicles to be made simpler

To make retrofitting of vehicles easy, transparent and accessible to the public, the Delhi transport department is planning to make the entire process online — from applying for fuel conversion to details about manufacturers, products, cost, dealers and how to apply for kits.
Following the orders of the National Green Tribunal, the Delhi government had last year announced scrapping of 15-year-old petrol vehicles and 10-year-old diesel vehicles. In January, around 1 lakh diesel vehicles were de-registered, and the transport department gave three choices — to get the vehicle scrapped from empanelled dealers, or to get it converted to electric with government-approved retrofitting kits, or to obtain a no-objection certificate and sell such vehicles outside the national capital.
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“The retrofitting will allow people to continue to use their costly vehicles rather than getting them scrapped, and will also be beneficial for the environment,” said an official.Best of Express PremiumPremiumPremiumPremiumPremium
However, some officials cautioned that the kits are costly, and come at different prices for different vehicle models. For instance, a kit for a car like Swift Dzire is Rs 5 lakh.
According to a senior official, the processes will be taken online and updated on the Vahan software. The transport department also held a meeting with the Nation Informatics Centre (NIC) in this regard on Monday.
“Vendors for manufacturing the retrofitting of old petrol and diesel vehicles have been approved by the International Centre for Automotive Technologies (ICAT) and Automotive Research Association of India (ARAI). These companies will be regulators, and will establish dealers and centres where the public can apply for the conversion of vehicles. To make the process easy and transparent, a mapping of all manufacturers and approved kits, details about the engine and its make, dealers and workshops, etc will be made available online,” said Ashish Kundra, principal secretary cum commissioner, transport department.
Kundra said ICAT and ARAI have approved 11 retrofitting kit manufacturers. “We are preparing a framework and master data to make the process hassle-free,” he added. He said the scheme will be approved in 10-15 days, and Vahan software will be updated.
Explaining the process, a transport department official said, “There are two processes, one is about what is available and the other is how to use it. The first one is for the suppliers or manufacturers. They will put details, like their location, products, the type of vehicles they are supplying the engines/kits for, and approved kits.”
The second is for consumers, where they get information on how to apply, product suitable for their vehicle, dealers and workshops. “After getting details about empanelled kits, consumers can apply online, visit nearby centres, see the model and pay if they are happy with the product. Even after getting the vehicle retrofitted, vehicle owner will not have to go to the motor licensing officer for in-person approval. The approval will be done online, ” said the official.

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می 27, 2022

How 2021’s Most Popular Stocks Have Fared In 2022 So Far…

A strong recovery from the Covid-19 downturn, record-high initial public offerings (IPOs), coupled with extra liquidity in the economy drove the markets.

Although, an interesting change in dynamic was witnessed in 2021. Retail investors enthusiastically made up for the heavy selling observed by foreign institutional investors (FIIs).

FIIs remained net sellers for six out of twelve months in 2021 and have continued their downward trend in 2022 so far.

In spite of substantial FII outflows, India’s benchmark BSE Sensex reached its highest level in October 2021 and logged a whopping 21% return for the year.

This tells us retail investors and DIIs were the only large buyers in the market. In other words, if retail investors stop or reduce their buying activity, the market will face a very tough time.

Some of this was witnessed in May 2022 when retail investors pulled money out of the markets to apply for Life Insurance Corporation (LIC) IPO.

Nonetheless, in 2021 a good number of stocks saw a sharp rally. But which were the most popular stocks of 2021?

Have these stocks performed well in 2022? Or have they eroded massive investor wealth?

Read on to find out how the most popular stocks of 2021 are performing now…

#1 Zomato

No surprises here.

Being the second largest public offer of the year in terms of money raised, Zomato was unarguably one of the most buzzing IPOs in Indian history.

It was also the first tech company which laid out the groundwork for other tech companies to launch their IPOs.

Zomato launched its IPO in July 2021 asking for investments of up to ₹93.75 bn. Though the company was making losses and had rich valuations, the IPO got oversubscribed 38.25 times.

Zomato got listed at a premium of 51% to its issue price. The upward momentum continued for the next few months before going down a slippery slope in 2022.

Have a look at the chart below which will show you the journey of Zomato since listing.

View Full ImageEquitymaster

Since the start of 2022, Zomato is down 52.7%.

In early 2022, Zomato shares went into heavy correction amid the meltdown in stocks of other major new-age companies like Nykaa, CarTrade Tech, and Paytm.

Investor sentiment further dampened by weak financial results reported for the December 2021 quarter. The Russia-Ukraine war accelerated the market selloff.

The company, like its peers, is facing cash flow problems. The operational costs run quite high and it’s unable to bring it below its cash inflows. Thus, it’s reporting huge losses.

Moreover, the business model of Zomato provides little scope for increasing prices to meet the operational costs.

The recent scenario of interest rate hikes has also impacted the new-age tech stocks. In volatile times like these, investors prefer to hold stocks with good profitability and high cash flows instead of growth companies.

Zomato has wiped out half of investor wealth in the current financial year.

#2 Restaurant Brands India

Restaurant Brands India (erstwhile Burger King India) operates as a franchisee of Burger King. It’s one of the fastest growing international quick service restaurant chains in the country.

As the national master franchisee of the Burger King brand in India, the company has exclusive rights to develop, operate, and franchise Burger King branded restaurants.

Incorporated in 2013, the company has established nearly 260 restaurants across major cities.

Restaurant Brands’ shares made their stock market debut on 14 December 2020 and were listed at a 92% premium whereas the stock closed 130% higher on its first day of trading.

The issue was the second most subscribed IPO of 2020 as it was subscribed 156 times.

Take a look at the chart below which presents the stock price performance of the scrip since 2021.

View Full ImageEquitymaster

The stock is down 33% in 2022 so far.

Primarily, the shares took a dive in February 2022, as fresh shares allotted by the company to qualified institutional buyers (QIBs) started trading on the exchanges on 18 February.

The company had raised ₹14 bn through qualified institutional placement (QIP) by issuing 108.5 m equity shares to eligible QIBs.

In subsequent three trading sessions, the stock dropped 23% and fell below the QIP’s issue price of ₹129.95 apiece.

The company intended to partly use the QIP funds to purchase Burger King Indonesia, which is the second major reason for the plunge.

The financials of Burger King Indonesia are not promising. Their earnings have been steadily decreasing amid tough competition in the Indonesian market.

Although there’s one noteworthy aspect, Restaurant Brands Asia currently has no debt on its balance sheet, which is rare for a loss-making growth company.

#3 Adani Green

The list would be incomplete without featuring at least one Adani group company.

Headquartered in Ahmedabad, Adani Green Energy is an Indian renewable energy company.

The company has a project portfolio of 13,990 MW and 20,284 MW of locked-in growth from under-construction assets as of December 2021.

Interestingly, Adani Green is also one of the best performing stocks since the March 2020 crash, giving around 1,379% returns in two years.

The stock is up over 60% in 2022 so far.

View Full ImageEquitymaster

The hike in April 2022 is due to the 56% year-on-year surge in operational capacity during the fourth quarter of fiscal 2022. The YoY energy sale jumped 84% during the same quarter.

Although, the stock has been consolidating for the last month. This could majorly be attributed to interest rate hike by the central bank to combat inflation.

Adani Green funds all its capital expenditure through debt from holding companies, debentures, and foreign currency loans.

With further hikes in sight, Adani Green might feel the burden on its books. The company failed to generate positive free cash flows in the 2021 fiscal.

#4 Tata Motors

Neither the global semiconductor shortage nor the battering by the second covid wave could hamper the near 160% rise in Tata Motors’ stock in 2021. The stock outperformed the benchmark indices by a mile.

Tata Motors witnessed a hike despite the company reporting consolidated net losses led by weakness in its subsidiary Jaguar Land Rover.

The success of US-based Tesla Inc and the central government’s push towards electrification of the automobile sector nudged investors to search for companies that could benefit from the technological disruption.

Tata Motors’ electric vehicle plans got a huge boost on the back of nearly US$ 1 bn investment by TPG Rise in its EV subsidiary.

Take a look at the chart of Tata Motor’s share price performance.

View Full ImageEquitymaster

Post a steep rally in October 2021, Tata Motors is down 15% in the current calendar year.

The plunge could be attributed to the weak financial results of December 2021 quarter.

Finally, the semiconductor shortage weighed in on the automaker as retail sales for the October-December 2021 quarter remained constrained.

On quarterly basis, retail sales were down 13.6% while on a yearly basis sales were down 37.6%.

Further, the anticipated economic slowdown could heavily impact the already lagging industry.

#5 Nazara Technologies

2021 had been an astronomical period for the Indian primary market with 63 companies collectively raising ₹1.2 bn through their maiden offers – the highest amount ever raised in a single calendar year.

Nazara Technologies was one such company to come out with its IPO. It is backed by ace investor Rakesh Jhunjhunwala.

The company is the leading India based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America.

The company derives revenues mainly from subscription fees paid by users for accessing gamified early learning content, as well as, from the eSports business.

It made a stellar debut on the bourses on 30 March 2021 as the shares of the firm listed at ₹1,990, an 81% over its issue price of ₹1,101 on the National Stock Exchange (NSE). Post-listing, it moved higher to ₹2,026.9, up 84%.

Have a look at the chart below which will show you the company’s journey since listing.

View Full ImageEquitymaster

In September 2021, Nazara Technologies outperformed the benchmark indices, rallying 20.3%.

A strong smallcap rally coupled with strong growth projections for the mobile gaming market in India with competition only from unlisted players had led to a bullish trend.

However, the stock has tumbled in 2022. Headwinds caused by a change in Apple policies and regulatory environment in real money gaming in India and the negative impact of Covid-19 in the e-sports segment may have soured investors’ sentiment.

Despite such challenges, the revenue from operations increased by 42% while the consolidated profit increased by 17% in March 2022.

Nazara Technologies is down 48.6% in 2022 so far.

The anticipated global economic slowdown could heavily impact the industry going forward.

But remember that the gaming addiction in India has just started. We haven’t seen anything yet.

Nazaara technologies, the only listed player in the online gaming industry, has a massive market waiting to be captured. There are many unlisted firms in this space too.

Keep this equation in mind…

Favourable demographics + internet penetration + smart phone coverage + purchasing power = Huge Long-Term Profits.

The takeaway?

The stock market is an expensive place to learn investing. The market takes away your money first and then gives you the lesson.

This has been the story of many popular scrips. Stocks riding high on easy money have come crashing down.

As we’ve written before, 2022 will be a difficult year for investors. There is a higher chance of losing money over the coming months compared to any period since March 2020.

And that’s exactly what has been happening. Currently, the markets are extremely volatile. So you must be extremely careful in selecting the best stocks to invest.

Here’s what Co-head of Research at Equitymaster Tanushree Banerjee has to say about selecting stocks…

The profits hereon won’t be easy money. You will need to carefully select your stocks, assess the risks, insist on a margin of safety, and make timely exits. The reason I say this is because, the trend of too much money chasing too few good stocks is reversing. The rising interest rate cycle could now reverse the direction of fund flows globally. Also, the post pandemic recovery is well factored into earnings projections and market valuations. So from now on, I believe the earnings recovery could be disproportionately high only in rare economic circumstances.

Do remember that opportunity can be found in any adversity. Hence, you can gain from the current environment if you invest carefully.

Now if you do plan to invest, then aim at investing for a long term to reap maximum benefits.

Happy investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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