How Has Tata Motors’s Revenue And EBITDA Composition Changed Over FY12-FY17?
There has been a gradual shift in the revenue and EBITDA contribution for Tata Motors (NYSE:TTM). The luxury division Jaguar Land Rover formed a combined 63% of the group’s net revenue in fiscal 2012, but is now estimated to form 80% of the top line in fiscal 2017. On the other hand, the standalone business comprising Tata and other branded vehicles has shrunk in comparison to the British marquee brands.
Jaguar Land Rover is the most important division for Tata Motors, as it contributes over 90% of the group’s valuation as per our estimate. This is because of the higher price points, broader margin, and higher anticipated future growth in sales for this division compared to the standalone division. As can be seen from the chart, JLR’s EBITDA contribution is estimated at a whopping 87% of Tata Motors’s overall EBITDA in fiscal 2017, seven percentage points more than its top line contribution.
- Tata Motors Stock Up After Announcement Of Investment In EV Business, Will It Sustain?
- Will Tata Motors Achieve Pre-Corona Stock Price?
- Can Tata Motors Stock Grow After A Slowdown Warning?
- Is Jaguar Land Rover 50%, 70%, Or 80% Of Tata Motors?
- Why Tata Motors Stock Has Rallied 30% Over The Last Week
- How Does Tata Motors Compare Against A Giant Like Toyota Motors?
JLR is also headed for more growth in the future, especially considering the automaker has opened its Brazilian production plant, and is planning a new plant in Slovakia, which will augment its supply. Trefis estimates Jaguar’s unit sales to grow at a CAGR of 9% between fiscal 2017 (ending March 2017) and fiscal 2024, and Land Rover’s unit sales to grow at a CAGR of 10%. On the other hand, Tata branded vehicles are expected to grow only moderately in comparison.
Have more questions on Tata Motors? See the links below.
- Tata Motors’s Q2 Results Were Marred By FX Revaluation And Hedging Losses
- Three Reasons Why Trefis Is Bullish On Tata Motors
- Tata Motors’ India Business Is Heading In A Positive Direction
- Tata Motors’ 50% Drop In Profits In Q1 Is Not All Bad News
- Brexit Could Be Good Or Bad News For Jaguar Land Rover
- New Compact Models Boost Jaguar Land Rover’s First Half Volumes
- Tata Motors Rides On Strong Q4 Performance By Jaguar Land Rover To Boost Fiscal 2016 Results
- Jaguar Land Rover Steps Up Unit Sales In Crucial Markets
- How Will Tata Motors’ Valuation Be Impacted If Jaguar Land Rover Sells Fewer Cars Than Estimated?
- What Will Be The Jump In Tata Motors’ Valuation If Jaguar Land Rover Sells More Cars Than Expected?
- Where Does Jaguar Land Rover Stand Relative To The German Top 3 In Crucial Markets?
- What’s Tata Motors’s Fundamental Value Based On Expected Fiscal 2017 Results?
- How Has Tata Motors’s Revenue And EBITDA Composition Changed Over FY12-FY17?
- By What Percentage Have Tata Motors’s Revenues And EBITDA Grown Over The Last Five Years?
- What Is Tata Motors’s Revenue And EBITDA Breakdown?
- Where Will Tata Motors’s Revenue And EBITDA Growth Come From Over The Next Three Years?
- Why Jaguar Land Rover Forms More Than 90% Of Tata Motors’ Valuation
Notes: