Tata Motors Combined Financial Results for the last Quarter and Nine months of 2011
On 14th February 2012, Tata Motors reported combined revenue (net of excise) of Rs. 45,260 crores for the period of October 2011 to December 2011. This marks growth of 44% over Rs. 31,442 crores recorded in the same period previous year. The growth is attributed to better products, market mix and rise in volumes. Excluding tax and exceptional item, the overall profit in the last quarter of 2011 was Rs. 4,658 crores against Rs. 2,760 crores during the same period in 2010. This increase in profit helped company to record 68.7% growth for the quarter ended on 31st December 2011. During the three months of the last quarter, the overall profit excluding tax (PBT) was Rs. 4,494 crores against Rs. 2,728 crores in 2010 in the same period. Including tax, profit distribution to associate companies and post minority interest, the company saw the consolidated profit rise to Rs. 3,406 crores in the last quarter of 2011 from Rs. 2,424 crores in 2010 during the same period.
Tata recorded a growth of 32.1% due to increase in combined revenue (net of excise), from Rs. 86,841 crores in the last nine months of 2010 to Rs.1,14,747 crores in 2011 during the same period. Excluding tax as well as exceptional item, Tata Motors earned a combined profit of Rs. 9,770 crores in 2011 during the same period. Due to this profit rise from Rs.7,472 crores in the same period last year, this auto giant achieved a growth of 30.7%.
The consolidated profit before tax (PBT) on 31st December, 2011 was Rs. 9,110 crores. This is the total figure of nine months; however, the PBT for the similar period was Rs.7,526 crores. There was a fluctuation of Rs. 714 crores due to exceptional item. The exceptional item signifies the exchange loss (net) including total revaluation of loans, foreign currency borrowings and deposits of Rs.660 crores in the initial three quarters of the current fiscal, in comparison to Rs.54 crores for the same period in the previous fiscal.
After post minority interest, tax and distribution of profit to associate companies, the consolidated profit for the last nine months of 2011 was Rs.7,283 crores. This figure was around Rs.6,636 crores for the same period in 2010.
Standalone Financial Results of the company for the Quarter and Nine months ended on 31st December, 2011
Increase in standalone revenue (net of excise) of Tata Motors from Rs.11,280 crores in 2010 to Rs.13,338 crores in 2011 represents 18.2% growth. Operating margins reduced to 6.7% in 2011 due to higher expenditure on marketing and consolidated cost pressures. Because of the same reasons, operating profit (EBITDA) came down from approximately Rs.1,217 crores in the last quarter of 2010 to Rs.897 crores in the same period in 2011. This reduction in operating profit marked a decline of 26.3%.
Tata Motors PBT came down from Rs.531 crores in the quarter ended on 31st December, 2010 to Rs.186 crores in the corresponding period in 2011. Company’s PAT for the last quarter of 2011 was Rs.174 crores, compared to Rs. 410 crores in the corresponding period in 2010.
Due to increase in standalone revenue (net of excise) from approximately Rs.32,763 crores in the last nine months of 2010 to Rs.37,916 crores in the corresponding period in 2011, Tata Motors attained 15.7% of growth.
For the same period, the company underwent an impact of Rs.282 crores of an Exceptional item in comparison to the exchange loss (net). The Rs.282 crores loss of an Exceptional item owing to nine months loss of Rs.375 crores for the current financial year, in comparison to the loss of Rs.93 crores during the corresponding period of the previous fiscal.
Owing to the impact of an exceptional item, the standalone profit excluding tax (PBT) for first three quarters of FY 2011-12 decreased to Rs. 689 crores from Rs.1,606 crores in the same period of the previous fiscal. After tax, the standalone profit for the initial nine months of current fiscal was Rs.677 crores against Rs.1,239 crores during the same period of previous financial year.
For the first nine months of the ongoing fiscal year, sales of Tata Motors including exports of passenger as well as commercial vehicles were 640,334 units. Further, sales of commercial vehicles in the domestic market for the last quarter of 2011 were 131,220 units, which is 15.5% more as compared to corresponding period of 2010. During the first nine months of current fiscal, Tata Motors sold 374,532 units of commercial vehicles, registering an increase of 15.5% as compared to the same period of 2010-11. Market share of the company in commercial vehicles for the initial three quarters of FY 2011-12 was 59.4%.
For the last quarter of 2011, sales of Fiat, Jaguar, Land Rover and other passenger vehicles in India increased by 33.2%. Sales during the same period in 2010 were 85,963 units. Tata Motors managed to sell 220,574 units during the initial nine months of FY 2011-12, which is 2% less as compared to the same period of FY 2010-11. Widely spread distribution network played a vital role in increasing retail sales. The company recorded impressive sales in the last quarter of FY 2011-12, due to which its market share for nine months in the ongoing fiscal year increased to 12.6%. For Q3 FY 2011-12, Tata Motors market share in the segment of passenger vehicles was 14.6%.
Jaguar Land Rover PLC
Sales of Jaguar Land Rover for initial three quarters of the ongoing fiscal year were 216,412 units. The reasons behind this growth of 21.9% over the corresponding period of previous fiscal year were improved product, mix market and impressive growth in Russia and China. Good response gained by the recent entrant Range Rover Evoque contributed towards the overall sales figures of the company in the last quarter of 2011 to 36.7% (86,322 units). Company witnessed a growth of 40.9% due to increase in profit from GBP 2,658 million in the quarter ended on 31st December, 2010 to GBP 3,746 million for the same period of the current year. Rise in demand of products and market mix were the reasons behind this profit increase.
Due to increase in operating profit from GBP 462 million in the last quarter of 2010 to GBP 752 million in the corresponding period of current year, the company saw a growth of 62.8%. During last three months of 2011, operating margin of Jaguar Land Rover was 20.1%. As compared to GBP 300 million in the last quarter of 2010, company’s PBT during the same period in 2011 was GBP 559 million. Further, PAT for the last three months of 2011 is GBP 440 million against GBP 280 million for the corresponding period of previous year. New products of the company are constantly gaining positive response. Until December 2011, the company had sold around 32,000 units.
Jaguar Land Rover signed the Revolving Credit Facility (RCF) with several banks for 3 to 5 years credit lines of GBP 610 million. From the time of formal agreement, this figure has been increased to GBP 710 million. Besides providing access to such funding whenever required, this increase will allow company to make judicious use of cash balance and consolidate its liquidity.
Tata Daewoo
In the last quarter of 2011, Tata Daewoo Commercial Vehicles Co. Ltd. recorded net profit of Rs.704 crores and net loss of Rs.1 crore. This was primarily because of economic slowdown which resulted in lower sales volume.
Tata Motors Finance
Tata Motors captive financing subsidiary, Tata Motors Finance Ltd, earned Rs.524 crores of net revenue and Rs.71 crores of after tax profit in the last three months of 2011.
