Tata Motors shocked the market with a profit warning for Q1 (April-June) and also indicated that the current quarter for Tata Motors as well will be a tough one. Here is what Tata Motors conveyed to investors and shareholders-:
Q1 wholesale volumes came in at 84442, ex China JV, which is 30000 below plan and estimates due to chip shortage
Q1 EBIT margin to be negative and -ve free cash flow to firm (FCFF) of 1 billion pounds
Q2 situation will be worse than Q1 as volumes will be 50% below plan
Q1 EBIT also to be negative. Another 1 billion pound cash loss seen in Q2
Q2 retails may be hurt due to shortage.