Tata Motors combined net revenue and profit surged by 36 per cent and 46 per cent, respectively in fiscal year 2011-12

Wednesday 30 May 2012, 23:27 PM by

Tata Motors, the largest auto manufacturer of South Asia, reported its combined revenues (net of excise) for the first quarter this year at Rs. 50,908 crores. The figures reported by the company marked a growth of 44.3 per cent as compared to the figures of corresponding period in previous year which stood at Rs. 35,287 crores. The consolidated earnings of the company before exceptional item and tax stood at Rs. 4,596 crores, registering a growth of 68.1 per cent. These figures are compared with the data of last year that marked Rs. 2,734 crores during the same tenure.

For the first quarter, the cumulative Profit Before Tax (PBT) of Tata Motors stood at Rs. 4,424 crores, whereas the figures of previous year’s corresponding period were Rs. 2,911 crores. However, the first quarter’s combined profit (after tax and post minority interest and profit of related companies) was Rs. 6,234 crores, whereas the figures of same period last year stood at Rs. 2,638 crores.

In fiscal year 2011-12, the cumulative revenue (net of excise) of Tata Motors was reported at Rs. 165,655 crores, registering a growth of 35.6 per cent when evaluated with Rs. 122,128 crores; the figures of corresponding tenure last year. The cumulative profit before exceptional item and Tax stood at Rs. 14,366 crores, reporting a growth of 40.8 per cent over Rs 10,206 crores under the review of same period previous year.

The Consolidated Profit before Tax (PBT) for the year was Rs. 13,534 crores, compared to Rs. 10,437 crores for the corresponding period last year. The Consolidated Profit for the period (after tax and post minority interest and profit in respect of associate companies) was Rs. 13,517 crores, as evaluated against Rs. 9,274 crores of the same period previous year.

Standalone revenues (net of excise) of Tata Motors were Rs. 16,391 crores at the end of March 31st 2012, showing a growth of 14.4 per cent as compared to Rs. 14,326 crores of previous year’s quarter. In the quarter which ended in March 2012, the facts like decrease in promotion costs and substantial growth in volumes has together resulted enhancement in operating margins to 9.5 per cent under the review of 8.9 per cent in the corresponding quarter last year.

Company’s operating profit (EBITDA) in first quarter was reported at Rs. 1,561 crores, which marked a growth of 22.1 per cent as compared to Rs. 1,278 crores of the same tenure last year. The PBT for quarter has been reported Rs. 652 crores over Rs. 591 crores of 2011, whereas the PAT for the quarter stood at Rs. 565 crores over Rs. 573 crores in corresponding tenure previous year.

In fiscal year 2011-12, the standalone revenues (net of excise) of Tata Motors were Rs. 54,307 crores which marked a growth of 15.3 per cent as compared to Rs. 47,088 crores; figures of same tenure previous year. However, the Standalone PBT of fiscal year 2011-12 stood at Rs. 1,341 crores over Rs. 2,197 crores of fiscal 2010-11. In fiscal 2012, the Standalone Profit After Tax of Tata Motors was reported at Rs. 1,242 crores as compared to figures of fiscal 2010-11, which stood at Rs. 1,812 crores.

Exceptional items are accounted for blowing the Standalone Profit Before Tax and Profit After Tax of Tata Motors in fiscal year 2011-12 mainly because of net exchange loss. Net exchange loss witnessed by the company included revaluation of international currency borrowings, deposits and the amount of loan which was continuously rising because of depreciation in the value of INR and certain provisions prepared for investments made in Tata Hispano Motors Carrocera SA, a completely owned subsidiary of Tata Motors. In fiscal year 2011-12, the Exceptional items were of Rs. 585 crores, whereas the figures of fiscal year 2010-11 stood at Rs. 147 crores.

In fiscal year 2011-12, the sales, including exports, of Tata Motors passenger and commercial vehicles reported at 926,353 units, marking a growth of 10.7 per cent under the review of same tenure last year. In the local market, the Q1 commercial vehicle sales of the company stood at 155,672 units, which showed an increase of 16.2 per cent as compared to same period of previous year. The sales of commercial vehicles in fiscal year 2011-12 expanded by 15.7 per cent amounting to 530,204 units, when compared to the same period of last year. Market share of Tata Motors in commercial vehicles segment stood at 59.4 per cent in fiscal year 2011-2012.

On the other hand, the passenger vehicles sold by the company in Q1 in local market, including the cars of Jaguar and Land Rover and Fiat, also registered an increase of 18.1 per cent. This growth resulted in an increase of 112,470 units when compared to figures of same period of previous year. The sales for fiscal year 2011-12 expanded by 4.0 per cent, amounting to 333,044 units under the review of figures registered in previous year. The sales were mainly driven because of set-up approach and targeted market schemes implied by the company. In fiscal 2011-12, Tata Motors acquired a market share of 13.1 per cent in passenger vehicles segment which was primarily encouraged with the sales figures of latest quarters. In the fourth quarter of fiscal 2012, the market share of Tata Motors in passenger vehicles segment stood at 14.2 per cent.

The sales of Jaguar Land Rover in first quarter of 2012 increased by 48.2 per cent and amounted to 98,021 units. Owing to this, Jaguar reported sales of 14,118 units in Q1, whereas volumes of Land Rover stood at 83,903 units during the period. The new launches made by the company have received a favourable response from all over the world. Till March 2012, the sales of recently introduced Range Rover Evoque reached an approximate figure of 60,217 units. Sales in China increased substantially and accounted for 19.0 per cent of the consolidated sales in Q1 as compared to 12.8 per cent of the same tenure in previous year.

In fiscal year 2011-12, the sales of Jaguar Land Rover stood at 314,433 units which accounted for the highest ever showing a growth of 29.1 pert cent over same period previous year. These figures were mainly influenced by the new launches of the company and the substantial increase in China’s auto industry as well as other growing markets across the globe. During the period, the sales of Jaguar stood at 54,039 units, whereas Land Rover reported 260,394 units.

At the end of first quarter this year, the revenues were 4,144 million British Pound (GBP) compared to GBP 2,735 million in the same period previous last year. The operating margins for quarter registered growth of 14.6 per cent, whereas Operating Profit (EBITDA) during the period stood at GBP 605 million, marking a growth of 61.5 per cent as compared to GBP 375 million in the same tenure last year.

The decent profit and revenue presentation of Tata Motors was boosted by the factors like market mix, sales growth, product mix and favourable currency fluctuation rates. PBT during the period is GBP 530 million, whereas figures of last year’s corresponding quarter stood at GBP 299 million. PAT for the first quarter of 2012 is GBP 696 million, whereas the figures of corresponding period last year stood at GBP 262 million. Amount of PAT includes GBP 217 million of earlier deferred tax assets which were unrecognised because of uncertainty in their recovery. However, they are now considered because of favourable development in company’s business and assurance of productive outlook in future.

In fiscal year 2011-12, the revenues of the company in GBP were 13,512 million, showing a growth of 36.9 per cent as compared to figures of same tenure last year which were GBP 9,871 million. The operating margins in fiscal 2011-12 stood at 15.0 per cent, whereas the Operating Profit (EBITDA) was GBP 2,027 million, marking an increase of 35.0 per cent when compared to GBP 1,502 million, the figures of same period last year. In fiscal year 2011-12, the Profit before Tax (PBT) stood at GBP 1,507 million over GBP 1,115 million which was reported in fiscal 2011. However, the Profit after Tax in fiscal year 2011-12 is recorded at GBP 1,481 million over GBP 1,036 million of the previous year.

Jaguar Land Rover effectively generated bonds of £500 million in March 2012 with a rate of 8.25 per cent for 8 years. The proceeds from these bonds were kept by JLR for future transactions initiated by the company. During the period, the company also announced its Joint Venture (JV) with Chery Automobile Company Limited. This agreement will lead the company to manufacture vehicles for the Chinese auto industry; however the approval by Chinese authorities is presently under process. In the same period, the company also expressed its consent upon the stronger performance of Jaguar Cars Limited and Land Rover in a single legal entity, named as Jaguar Land Rover Limited. However, the consolidation is anticipated to come into existence before the end of this year.

One of the associate corporations, in fiscal year 2011-12 Tata Daewoo Commercial Vehicles Company Limited reported net revenues of South Korean Won (KRW) 767 billion and registered Net profit of KRW 3.6 billion. In fiscal year 2011-12, the confined financing subsidiary of the company, Tata Motors Finance Limited reported net revenues of Rs. 2,018 crores and registered Profit After Tax of Rs. 240 crores.

For the financial year 2011-12, company’s Board of Directors have proposed a dividend of Rs. 4/- on every Ordinary Share of Rs. 21 and Rs. 4.10 on each ‘A’ Ordinary Shares of Rs. 21, all these amounts are subject to consent of the shareholders. However, the figures of last year’s dividend were Rs. 20 on every Ordinary Share of Rs. 10 each and Rs. 20.5 on every 'A' Ordinary Shares of Rs. 10 each. The tax paid by the company on dividend will be beard by the company itself.