Tata Motors may Struggle to Rev Up with Hedging a Drag
price fluctuations. With significant sales coming from the UK, China, and the rest of Europe, Tata Motors has significantly greater currency exposure than its India-listed peers. The clean EBITDA margin, computedafterremovingallnonrecurringitems,stoodat10.1%in the December quarter. In the first nine months of FY17, clean EBITDA margin for JLR stood at 12.9%: The Street estimated EBITDA margin of 13.2% and 15.8% for FY17 and FY18, respectively, before the December quarter results. The consensus EBITDA margins are now likely to be trimmed after the management commentary on future earnings.