In Dec 2010 quarter, Tata Motors - India's largest automobile company, outbeat the market expectations with significant 273% growth in consolidated net profit of Rs. 2424.38 crore. This outstanding growth was aided by healthy volumes in domestic and JLR, benefits from cost reduction measures, favorable forex movement, product mix & market mix, supportive non operating performance and earning profit on investment (against EO expenses in Dec 09 quarter). The operating profit margin (OPM) grew by 270 bps lifting the operating profit by robust 51% to Rs. 4488.60 crore. The topline grew by 22% to Rs. 31685.20 crore exceeding the market expectation thanks to demand for JLR and healthy domestic sales. The consolidated operating income grew by 22% to Rs. 31685.20 crore on healthy volumes at domestic side as well as JLR. The JLR sales grew by 26% to Rs. 18834.42 crore driven by better whole sales and retail volumes, product mix, stronger demand for 10MY product portfolio and XJ as well as improvement in general economic conditions. The wholesale volumes of JLR grew by 11% to 63155 vehicles. The sales of tata vehicles, spares and finance rose by 23% to Rs. 12717 crore.
Better product and market mix, favorable exchange movement and cost reduction measures enabled 270 bps hike in OPM to 14.2% thereby lifting the operating profit by robust 51% to Rs. 4488.60 crore. The PBIT margin of JLR grew by whopping 820 bps to 11% lifting its PBIT by significant 347% to Rs. 2157.52 crore. On the other hand, the PBIT margin of tata vehicles, spares and finance reduced by 270 bps to 8% resulting in 7% degrowth in its PBIT to Rs. 1071.65 crore.
The company's PBT before EO grew by whopping 173% to Rs. 2723.72 crore thanks to decline in non operating expenses i.e. depreciation cost and interest costs and crash in forex loss (by 74%). Further the PBT after EO grew by substantial 207% to Rs. 2727.73 crore on accounting profit of investment of Rs. 4.01 crore against EO expense of Rs. 107.14 crore in Dec 09 quarter. On accounting tax provision, minority interest and share of associates, the net profit settled with outstanding 273% growth to Rs. 2424.38 crore.
On standalone basis, the operating income grew by 28% to Rs. 11519.55 crore. High commodity prices lowered the OPM by 240 bps to 10.1% thereby limiting the operating profit growth to flat 3% to Rs. 1168.27 crore. The net profit grew by meager 2% to Rs. 410.06 crore.
Nine Month Performance In nine months ended Dec 10, the consolidated topline grew by healthy 38% to Rs. 87522.77 crore on back of 36% growth in tata vehicles, spares and finance and 45% in JLR. Increase in OPM by 630 bps to 14.1% boosted the operating profit by whopping 148% to Rs. 12345.63 crore. Fall in interest cost, marginal growth in depreciation cost and growth in forex gains lifted the PBT before EO to whopping Rs. 7506.55 crore from Rs. 377.71 crore in nine month ended Dec 09. Though crash in EO income by 96% constrained the profits; the tax provision, fall in minority interest and growth in profit of associates offset the impact, thereby resulting in outstanding net profit of Rs. 6636.10 crore against Rs. 343.26 crore in nine month ended Dec 09.
On standalone basis, the operating income grew by robust 43% to Rs. 33439.88 crore. Fall in OPM by 220 bps to 10.2% limited the operating profit growth to 18% to Rs. 3418.65 crore. The net profit declined by 25% to Rs. 1238.48 crore.
During the quarter ended December 31, 2010,, the Company has issued shares aggregating US$ 750 million, comprising 'A' Ordinary Shares aggregating US$ 550 million and Ordinary Shares aggregating US$ 200 million through Qualified Institutional Placement (QIP). Consequently, the Company has allotted 32,165,000 'A' Ordinary Shares at a price of Rs. 764 per 'A' Ordinary Share (including a premium of Rs. 754 per 'A' Ordinary Share) and 8,320,300 Ordinary Shares at a price of Rs. 1,074 per Ordinary Share (including a premium of Rs. 1,064 per Ordinary Share) aggregating to a total issue size of Rs. 3,351.01 crores.
The scrip closed at Rs. 1144.65 on BSE.
Tata Motors: Consolidated Results
| Particulars | 1012 (3) | 0912 (3) | Var (%) | 1012 (9) | 0912 (9) | Var (%) | 1003(12) | 0903(12) | Var (%) |
| Operating Income | 31685.20 | 25974.19 | 22 | 87522.77 | 63535.61 | 38 | 92519.25 | 70880.95 | 31 |
| OPM (%) | 14.2 | 11.4 | 14.1 | 7.8 | 8.8 | 2.6 | |||
| OP | 4488.60 | 2971.75 | 51 | 12345.63 | 4980.52 | 148 | 8115.96 | 1848.75 | 339 |
| Other income | 5.89 | 2.00 | 195 | 44.68 | 38.40 | 16 | 41.58 | 80.80 | -49 |
| PBDIT | 4494.49 | 2973.75 | 51 | 12390.31 | 5018.92 | 147 | 8157.54 | 1929.55 | 323 |
| Interest | 499.33 | 545.75 | -9 | 1592.20 | 1688.30 | -6 | 2239.71 | 1930.90 | 16 |
| PBDT | 3995.16 | 2428.00 | 65 | 10798.11 | 3330.62 | 224 | 5917.83 | -1.35 | LP |
| Depreciation | 1238.75 | 1307.20 | -5 | 3345.15 | 2999.37 | 12 | 3887.13 | 2506.77 | 55 |
| PBT Before Notional Forex Gain/Loss | 2756.41 | 1120.80 | 146 | 7452.96 | 331.25 | 999 | 2030.70 | -2508.12 | LP |
| Notional exchange (loss) / gain (net) on revaluation of foreign currency borrowings, deposits and loans given | -32.69 | -124.38 | -74 | 53.59 | 46.46 | 15 | 84.47 | -339.29 | LP |
| PBT Before EO | 2723.72 | 996.42 | 173 | 7506.55 | 377.71 | 999 | 2115.17 | -2847.41 | LP |
| EO | 4.01 | -107.14 | LP | 19.31 | 528.98 | -96 | 1407.47 | 718.16 | 96 |
| PBT After EO | 2727.73 | 889.28 | 207 | 7525.86 | 906.69 | 730 | 3522.64 | -2129.25 | LP |
| Tax Provision^ | 318.86 | 242.87 | 31 | 927.98 | 596.55 | 56 | 1005.75 | 335.75 | 200 |
| PAT | 2408.87 | 646.41 | 273 | 6597.88 | 310.14 | 999 | 2516.89 | -2465.00 | LP |
| EO after Tax | 0.00 | 0.00 | 0 | 0.00 | 0.00 | 0 | 0.00 | 0.00 | 0 |
| Share of Minority Interest | -10.82 | -15.53 | -30 | -28.37 | -6.21 | 357 | -30.33 | 11.48 | PL |
| Profit in respect of investments in Associate Companies | 26.33 | 19.38 | 36 | 66.59 | 39.33 | 69 | 84.50 | -51.73 | LP |
| Net profit attributable to consolidated group | 2424.38 | 650.26 | 273 | 6636.10 | 343.26 | 999 | 2571.06 | -2505.25 | LP |
| EPS (Rs)* | 152.8 | 46.0 | 139.3 | 3.4 | 24.7 | -52.7 |
| Particulars | 1012 (3) | 0912 (3) | (%) of Total | Var (%) | 1012 (9) | 0912 (9) | (%) of Total | Var (%) | 1003(12) | 0903 (12) | (%) of Total | Var (%) |
| Segment Revenue | ||||||||||||
| (i) Automotive and related activity: tata vehicles/spares & financing thereof | 12717.00 | 10367.84 | 23 | 36661.73 | 26887.13 | 36 | 40359.29 | 28606.37 | 41 | |||
| Jaguar & Landrover business | 18834.42 | 14947.16 | 26 | 50393.79 | 34772.70 | 45 | 49344.21 | 39270.70 | 26 | |||
| Less: Inter Segment Elimination | 98.04 | 45.17 | 117 | 192.44 | 67.04 | 187 | 88.43 | 0.00 | 100 | |||
| Total Automotive | 31453.38 | 25269.83 | 99 | 24 | 86863.08 | 61592.79 | 99 | 41 | 89615.07 | 67877.07 | 96 | 32 |
| Others | 377.13 | 854.12 | 1 | -56 | 1092.77 | 2337.05 | 1 | -53 | 3437.96 | 3465.59 | 4 | -1 |
| Total Segment Revenue | 31830.51 | 26123.95 | 100 | 22 | 87955.85 | 63929.84 | 100 | 38 | 93053.03 | 71342.66 | 100 | 30 |
| Less : Inter-Segment Revenue | 145.31 | 149.76 | -3 | 433.08 | 394.23 | 10 | 533.78 | 461.71 | 16 | |||
| Net Sales | 31685.20 | 25974.19 | 22 | 87522.77 | 63535.61 | 38 | 92519.25 | 70880.95 | 31 | |||
| Segment Results | ||||||||||||
| PBIT | ||||||||||||
| (i) Automotive and related activity: tata vehicles/spares & financing thereof | 1071.65 | 1155.03 | -7 | 3224.93 | 2510.55 | 28 | 3758.12 | 958.40 | 292 | |||
| Jaguar & Landrover business | 2157.52 | 482.38 | 347 | 5689.78 | -633.94 | LP | 53.84 | -1777.35 | LP | |||
| Less: Inter Segment Elimination | 8.48 | 10.63 | -20 | 10.63 | 13.11 | -19 | 9.77 | 0.00 | 100 | |||
| Total Automotive | 3220.69 | 1626.78 | 99 | 98 | 8904.08 | 1863.50 | 98 | 378 | 3802.19 | -818.95 | 93 | LP |
| Others | 45.95 | 93.39 | 1 | -51 | 142.79 | 172.40 | 2 | -17 | 288.99 | 217.54 | 7 | 33 |
| Total Segment Results | 3266.64 | 1720.17 | 100 | 90 | 9046.87 | 2035.90 | 100 | 344 | 4091.18 | -601.41 | 100 | LP |
| Less : Inter-Segment Elimination | 16.79 | 55.62 | -70 | 46.39 | 54.75 | -15 | 101.38 | 56.61 | 79 | |||
| Net Segment Results | 3249.85 | 1664.55 | 95 | 9000.48 | 1981.15 | 354 | 3989.80 | -658.02 | LP | |||
| Less: | ||||||||||||
| Interest Expense (net) | 499.33 | 545.75 | -9 | 1592.20 | 1688.30 | -6 | 2239.71 | 1930.90 | 16 | |||
| Other Unallocable Income net off Unallocable (Expenditure) | 9.90 | 4.69 | 111 | 63.99 | 732.48 | -91 | 1793.12 | 798.96 | 124 | |||
| Notional exchange (loss) / gain (net) on revaluation of foreign currency borrowings, deposits and loans given | 0.00 | 0.00 | 0 | 0.00 | 0.00 | 0 | 84.47 | -339.29 | LP | |||
| PBT before EO | 2760.42 | 1123.49 | 146 | 7472.27 | 1025.33 | 629 | 3627.68 | -2129.25 | LP | |||
| EO | -32.69 | -234.21 | -86 | 53.59 | -118.64 | LP | -105.04 | 0.00 | -100 | |||
| PBT after EO | 2727.73 | 889.28 | 207 | 7525.86 | 906.69 | 730 | 3522.64 | -2129.25 | LP | |||
| Capital Employed | ||||||||||||
| (Segment Assets less Segment Liabilities) | ||||||||||||
| (i) Automotive and related activity: tata vehicles/spares & financing thereof | 28158.42 | 23477.76 | 20 | 28158.42 | 23477.76 | 20 | 22929.91 | 22019.48 | 4 | |||
| Jaguar & Landrover business | 21450.89 | 15304.79 | 40 | 21450.89 | 15304.79 | 40 | 19403.80 | 15115.34 | 28 | |||
| Less : Inter-Segment Elimination | 20.63 | 10.97 | 88 | 20.63 | 10.97 | 88 | 9.77 | 0.00 | 100 | |||
| Total Automotive | 49588.68 | 38771.58 | 98 | 28 | 49588.68 | 38771.58 | 98 | 28 | 42323.94 | 37134.82 | 98 | 14 |
| Others | 840.67 | 1602.93 | 2 | -48 | 840.67 | 1602.93 | 2 | -48 | 764.56 | 1923.05 | 2 | -60 |
| Total Capital Employed | 50429.35 | 40374.51 | 100 | 25 | 50429.35 | 40374.51 | 100 | 25 | 43088.50 | 39057.87 | 100 | 10 |
| Add/Less: Inter Segment Eliminations | 390.28 | 265.20 | 47 | 390.28 | 265.20 | 47 | 287.71 | 160.82 | 79 | |||
| Aggregate for the company | 50039.07 | 40109.31 | 25 | 50039.07 | 40109.31 | 25 | 42800.79 | 38897.05 | 10 | |||
| LP: Loss to profit; PL: Profit to loss Var. (%) exceeding 999 has been truncated to 999 EO: Extraordinary item Figures in Rs. crore Source: Capitaline Corporate Database | ||||||||||||
