What Is The Revenue And EBITDA Breakdown For Tata Motors

-62.32%
Downside
25.14
Market
9.47
Trefis
TTM: Tata Motors logo
TTM
Tata Motors

Around 50% of the vehicles sold by Tata Motors (NYSE:TTM) belong to the standalone business, but still the Jaguar Land Rover division contributes more than 90% of the group’s valuation, as per our estimates. This is because of the higher price points, broader margin, and higher anticipated growth rate for the luxury division Jaguar Land Rover, compared to the standalone business.

For example, the average revenue per model for the Jaguar Land Rover division is expected to be 4x the figure for the standalone business, as the luxury sedans and SUVs offered by JLR operate at high price points. Furthermore, JLR’s profitability is also higher as it is a premium brand offering. This is why despite a high volume for the standalone business, JLR is expected to constitute 80% of the top line in fiscal 2017 (ending March 2017) and 87% of the EBITDA.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Tata Motors

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