Q2 2023 Earnings Report: Tata Motors, Adani Enterprises, Dabur, and More

02 Nov, 2023

Q2 2023 Earnings Report: Tata Motors, Adani Enterprises, Dabur, and More

Q2 Earnings Season Continues with 132 Companies Set to Release Results

This week, a flurry of companies has unveiled their Q2 earnings, with a sense of uncertainty looming over corporate India's performance. Today, an additional 132 companies are scheduled to release their financial results for the September quarter. Analysts are apprehensive as the Q2 results thus far have failed to impress, and investors may soon contend with mounting pressures stemming from rising interest rates, inflation, and a potential economic slowdown.

On Wednesday, Indian benchmark equity indices closed in the red for the second consecutive session. This decline can be attributed to persistent foreign fund outflows and weakness in banking, finance, and metals stocks. Despite this, the Indian stock market is expected to open on a positive note today, tracking positive global cues.

Among the notable companies set to disclose their Q2 results today are Tata Motors, Adani Enterprises, and Dabur, alongside many others. Let's take a closer look at Tata Motors:

Tata Motors Expects Profitable Q2FY24

Tata Motors anticipates a positive performance in Q2FY24, marking a significant turnaround from the net loss it reported in the corresponding quarter of the previous fiscal year. According to the estimates from six brokerages, Tata Motors is expected to announce a net profit of ₹3,994 crore in the second quarter of FY24. This turnaround can be attributed to several key factors:

Lower Commodity Prices: Tata Motors has benefitted from lower commodity prices, which have positively impacted its cost structure.
Operating Leverage: The company has leveraged its operational efficiencies to improve its profitability.
Jaguar Land Rover (JLR) Volume Growth: The volume ramp-up at JLR has contributed significantly to Tata Motors' profitability. The easing chip shortage situation and the continued success of new models at JLR have driven growth in its volumes.
Mixed Performance in India Business: In the domestic market, Tata Motors experienced a mixed performance. Commercial vehicle (CV) volumes increased by 3.5% YoY, while passenger vehicle (PV) volumes saw a 3% YoY decline.
As the earnings season unfolds, investors eagerly await these corporate results, which will provide insights into the health and resilience of the Indian economy and its key players in the face of the evolving global economic landscape