ms, the company’s notional exchange loss in the first quarter fell to Rs 5.54 crore, compared with Rs 162 crore in the previous year. The rules were relaxed to help companies on mark-to-market losses on foreign currency loans, in a market deeply affected by a volatile forex market.
Although Tata Motors had been able to raise its operating margin to 11.4% from 7.1% in the previous year, the market was mixed on whether the company could maintain it. “The company may be able to sustain the margin, provided the volumes don’t dip,” said HDFC Securities head of retail research Deepak Jasani.
“Since Tata Motors is largely dependent on commercial vehicle sales, for the margin to improve significantly, there has to be a major contribution from CVs,” he said.
Centrum Broking’s auto analyst Mahantesh Sabarad said the company’s volume outlook was looking better. “We expect a margin pressure in the next quarter coming from its new range of products such as the Nano, World truck and the Indigo Prima,” he said.
Although Tata Motors had been able to raise its operating margin to 11.4% from 7.1% in the previous year, the market was mixed on whether the company could maintain it. “The company may be able to sustain the margin, provided the volumes don’t dip,” said HDFC Securities head of retail research Deepak Jasani.
“Since Tata Motors is largely dependent on commercial vehicle sales, for the margin to improve significantly, there has to be a major contribution from CVs,” he said.
Centrum Broking’s auto analyst Mahantesh Sabarad said the company’s volume outlook was looking better. “We expect a margin pressure in the next quarter coming from its new range of products such as the Nano, World truck and the Indigo Prima,” he said.
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