Road ahead for Tata Motors depends on the pace of volume recovery

Tata Motors reported a 30 per cent year-on-year (YoY) growth in revenues while operating profit saw a 35 per cent jump

While September quarter results for the 2022-23 financial year (Q2FY23) of Tata Motors missed the Street estimates, making analysts cautious on the pace of recovery going ahead as supply conditions ease and commodity prices start coming off.

Some brokerages have cut their consolidated operating profit and net profit earnings estimates for FY23 and FY24 by up to 10 per cent to reflect slow volume recovery as well as unfavourable currency impact.

Jinesh Gandhi and Aniket Desai of Motilal Oswal Research say that the company’s Q2FY23 performance was an all-round miss. “Jaguar Land Rover (JLR) continues to struggle with semiconductor shortages,