Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

In our view, Tata Motors’ Q4/18-19 results were acceptable and helped to ameliorate the otherwise weak full-year results. JLR reported positive earnings and FCF during the quarter, which likely eased creditors’ concerns over the rate of cash burn. Key market China remained depressed, albeit the situation did not deteriorate. The operating environment in the rest of the world too remains challenging, with uncertainty in the UK and Europe in relation to diesel vehicles and Brexit, and a cyclically weaker market in the US (though this should only get slightly worse). Positively, even with the challenging markets, JLR is on track to deliver on its GBP 2.5 bn cost-saving programme. Negatively, the financial risk profile worsened significantly relative to FYE 2017-18, though liquidity remains adequate for the next year. The sudden resignation of CFO Ken Gregor does not bode for the situation at JLR. We expect JLR to continue facing pressure until FYE 2019-20, owing to: [1] a global downturn in the luxury segment; [2] its sales strategy in China, which does not seem to be working well; and [3] uncertainty over Brexit. While India is doing relatively better, the strong sales growth seen in early FY 2018-19 did not continue into Q4, which was weak. In addition, the Indian business cannot entirely compensate for issues at JLR, which accounts for the majority of Tata Motors' EBITDA. Overall, we anticipate that FY 2019-20 performance will be marginally better than in FY 2018-19, but not at the level of FY 2017-18. We expect a small improvement in the credit profile by FYE 2019-20.

   In our view, Tata Motors’ Q4/18-19 results were acceptable and helped to ameliorate the otherwise weak full-year results. JLR reported positive earnings and FCF during the quarter, which likely eased creditors’ concerns over the rate of cash burn. Key market China remained depressed, albeit the situation did not deteriorate. The operating environment in the rest of the world too remains challenging, with uncertainty in the UK and Europe in relation to diesel vehicles and Brexit, and a cyclically weaker market in the US (though this should only get slightly worse). Positively, even with the challenging markets, JLR is on track to deliver on its GBP 2.5 bn cost-saving programme. Negatively, the financial risk profile worsened significantly relative to FYE 2017-18, though liquidity remains adequate for the next year. The sudden resignation of CFO Ken Gregor does not bode for the situation at JLR.    We expect JLR to continue facing pressure until FYE 2019-20, owing to: [1] a global downturn in the luxury segment; [2] its sales strategy in China, which does not seem to be working well; and [3] uncertainty over Brexit. While India is doing relatively better, the strong sales growth seen in early FY 2018-19 did not continue into Q4, which was weak. In addition, the Indian business cannot entirely compensate for issues at JLR, which accounts for the majority of Tata Motors' EBITDA. Overall, we anticipate that FY 2019-20 performance will be marginally better than in FY 2018-19, but not at the level of FY 2017-18. We expect a small improvement in the credit profile by FYE 2019-20. 

Tata Motors - Earnings Flash - FY 2018-19 Results - Lucror Analytics

Tata Motors Ltd

Tata Motors - Earnings Flash - FY 2018-19 Results - Lucror Analytics