Tata Motors - Q1FY12 Standalone & Consolidated Result

Tata Motors Limited

NSE: TATAMOTOR

BSE:  500570

NYSE: TTM

Nasdaq: TTM

Standalone & Consolidated result for the Q1 FY12.

Standalone Result

• The standalone gross revenue of the Tata Motors Ltd increased 14.4 % to Rs. 12925 Cr for the quarter ended 30th Jun 2011 against Rs. 11297 Cr for the quarter ended 30th Jun 2010. But the same is significantly lower by 17.9% than the previous quarter (Quarter ending 31st Mar 2011 has net sales of Rs. 14,632 Cr).  
• The standalone net profit of the Tata Motors increased insignificantly by 1.4% to Rs. 401.28 Cr for the quarter ended 30th Jun 2011 against Rs. 395.72 Cr for quarter ended 30th Jun 2010. But the same is significantly lower by  30.0 % than the previous quarter (Quarter ended 31st Mar 2011 has net profit of Rs. 573 Cr).

Our analysis on standalone result of Tata Motors:

1. The standalone revenue & net profit has always declined for Tata Motors in the first quarter of the Financial Year in the past 4 Years. Hence it is not a major issue.
2. Tata Motors said cost pressures, including commodity price increase, resulted in a reduction in the operating margins to 8.4% (against 11.28 % in the same quarter of previous financial year),  and an Operating Profit (EBITDA) of Rs. 999 crores in the quarter, declining by 15.0% over Rs. 1,175 crores in the corresponding quarter of the previous year.
3. Tata Motors' sales (including exports) of commercial and passenger vehicles for the quarter stood at 197,606 units, representing a growth of 3.8 %.
4. In the domestic market, commercial vehicles sales increased 13 per cent to 113,186 units as against 100,186 units in the same quarter of previous financial year. The company's market share in commercial vehicles reduced to 60.1% as against 61% in the same quarter of the previous financial year.
5. In the domestic market, Passenger vehicles sales (including Fiat, Jaguar & Land Rover vehicles) declined  10.7 % to 69,529 units as against 77,858 units in the same quarter of previous financial year. The company's market share in commercial vehicles reduced to 11.9 % as against 13.3 % in the same quarter of the previous financial year. 

Consolidated Result

• The net revenue of the group increased by 24.1 % to Rs. 33572 Cr for the quarter ended 30th Jun 2011 as against Rs. 27056 Cr for the quarter ended 30th Jun 2010. But the same has declined against the previous quarter by 6.1 % (Net sales for the quarter ending 31st Mar 2011 stood at Rs. 35848 Cr).
• The net profit of the group increased by 0.55 % to Rs. 1999.62 Cr for the quarter ended 30th Jun 2011 as against Rs. 1988.73 Cr for the quarter ended 30th Jun 2010. Net profit declined by 24.47 % QoQ (Net profit for the quarter ending 31st Mar 2011 stood at Rs. 2638 Cr).

Our analysis on consolidated result of Tata Motors:

1. Similar to the standalone case, the net profit of the group has always declined in the first quarter of the financial year from past 3 yrs, though this may be the biggest fall. 
2. JLR revenue rose 19.9% to 2.712 billion Pounds in Q1 FY12 against 2.262 billion Pounds in Q1 FY11. Cost pressures and impact of exchange rates resulted in a marginal reduction in the operating margins to 15.1%. EBITDA rose 16.9% to 408 million pounds in Q1 June 2011 over Q1 June 2010. Profit after tax fell 3.09% to 219 million pounds in Q1 June 2011 over Q1 June 2010. 
3. n May 2011, JLR successfully completed issue of 7-year and 10-year Bonds aggregating GBP 1 Billion, part of which has been used for refinancing of existing loans and general corporate purposes.
4. A new vehicle assembly plant was inaugurated in Pune, India, in May 2011. The facility at present is assembling Land Rover's Freelander 2 vehicles supplied in Complete Knock Down (CKD) form, from the Halewood manufacturing plant in Liverpool.
5. Tata Daewoo Commercial Vehicles Company reported net revenues of Rs. 880 crore and a profit after tax of Rs. 16 crore for Q1 June 2011.  
6. Tata Motors Finance, the company's captive financing unit, reported net revenue of Rs. 240 crore and a profit after tax of Rs. 49 crore for Q1 June 2011.
7. JLR sold 62090 units in quarter against 57,153 units (rise of 8.63 %).
8. Jaguar has announced the new 2.2 litre diesel engine in the 2012 model year Jaguar XF and has also confirmed its decision to build the C-X75 hybrid supercars. The much awaited Range Rover Evoque, being launched in September 2011, has received significant expression of interest and around 18,000 bookings. It already received the "Car of the Year" award from the UK's largest auto magazine, AutoExpress.
9. The company incurred heavy more marketing expenses in the quarter for the promotion of new vehicle Range Rover Evoque.