BackTata Motors likely to announce dividend along with its Q4 results
Tata Motors told stock exchanges on 4 May that its board will meet on 12 May to consider declaring dividend for shareholders.
PremiumAuto major Tata Motors may declare dividend along with its March quarter results on May 12. The company would declare a dividend for the first time since 2016, as it returned to profitability in the December quarter after two consecutive years of losses.
The company told stock exchanges on 4 May that its board will meet on 12 May to consider declaring dividend for shareholders.
“We hereby inform that the Board of Directors of Tata Motors Limited ('the Company') at its Board Meeting scheduled to be held on Friday, May 12, 2023 will consider. inter alia, the proposal of recommending declaration of a dividend on the Ordinary Shares and 'A' Ordinary Shares of the Company for the financial year ended March 31 , 2023, for approval of the shareholders at the forthcoming 78th Annual General Meeting of the Company," said Tata Motors in its regulatory filing.
Tata Motors’ domestic commercial vehicle and passenger vehicle sales rose 35 per cent and 45 per cent in FY23 compared to the previous year.
The company had posted its first quarterly profit in two years on rising in December quarter on demand for passenger cars as well as medium and heavy commercial vehicles. It had reported a consolidated net profit of ₹2,957.71 crore for the third quarter ending December (Q3FY23).
Tata Motors announced its plan last December to take Tata Technologies, an engineering and digital services company, in which it holds a 75% stake, public and to use the cash flow the IPO will generate to achieve its debt reduction target.
Tata Motors is expected to report healthy numbers for the quarter ended March on Friday, led by margin expansion across divisions and also strong India and tracking a recovery in wholesale volumes at JLR.
According to brokerage Motilal Oswal, India business performance remains healthy, led by strong growth in PVs and CVs in 4Q. While, JLR volumes are expected to grow YoY due to easing chip shortages.
“We estimate an EBIT margin of 5.3% for JLR in 4QFY23, supported by mix, softening RM costs and cost control," it said.
“EBIT margin for CV likely to expand 210 bps QoQ to 8.1% driven by operating leverage, while it is likely to contract by 20 bpS QoQ to 1.5% for PVs," it added.
Tata Motors shares touched new 52-week high ahead of its Q4FY23 results on Friday. It touched a new 52-week high of ₹520.40. The company's scrip was up 0.63 per cent at ₹514.85 on BSE.
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