August 10, 2010

Tata Motors consolidated net revenue grows by 64.2 per cent in Q1 FY2010-11

Consolidated profit after tax at Rs1,988.73 crore (loss of Rs328.78 crore in Q1 FY2009-10)
Consolidated financial results for the quarter ended June 30, 2010
The Tata Motors group today reported consolidated revenues (net of excise) of Rs27,055.57 crore, posting a growth of 64.2 per cent over Rs16,472.97 crore in the corresponding quarter of the previous year, with strong volume growth globally in all major markets. The consolidated profit before tax (PBT) (post minority interest and profit in respect of associate companies) for the quarter was Rs2,275.44 crore, compared to a loss before tax of Rs269.86 crore for the corresponding quarter last year. The consolidated profit after tax (PAT) for the quarter was Rs1,988.73 crore, a significant turnaround from a loss of Rs328.78 crore in the corresponding quarter last year.

Tata Motors has reported a basic earnings per share (EPS) of Rs34.80 in Q1 FY2010-11 for its consolidated operations as against a loss per share of Rs6.40 in Q1 FY2009-10.
Tata Motors stand-alone financial results for the quarter ended June 30, 2010
Tata Motors gross revenue for the quarter ended June 30, 2010, was Rs11,296.80 crore (quarter ended June 30, 2009: Rs6,930.43 crore).

Revenues (net of excise) of Rs10,416.26 crore, represented a growth of 62.7 per cent over Rs6,404.02 crore in the corresponding quarter last year. Volume growth, cost efficiencies and better realisations have led to a double-digit operating margin of 11.28 per cent, resulting in an operating profit (EBITDA) of Rs1,174.67 crore in the quarter (quarter ended June 30, 2009: Rs728.00 crore). The PBT for the quarter is Rs537.65 crore (quarter ended June 30, 2009: Rs548.04 crore, which included profit of Rs318.94 crore on sale of investments, which were not liable to tax). The PAT for the quarter is Rs395.72 crore (quarter ended June 30, 2009: Rs513.76 crore).

Overall economic growth, robust IIP and availability of liquidity led to robust domestic demand during the quarter, resulting in volume growth comprising both new products and the existing portfolio. In the domestic market, the company’s commercial vehicles sales increased by 38.7 per cent to 100,186 units. The growth was mainly supported by medium and heavy commercial vehicles which grew by 62.4 per cent year-on-year. The company’s market share in commercial vehicles was 61 per cent.

Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 56.0 per cent in the domestic market to 77,858 vehicles driven by continued overwhelming response to the Tata Indigo Manza, the Tata Indica Vista and the Tata Nano. The market share for Tata passenger vehicles for the period stood at 13.3 per cent as compared to 11.2 per cent in Q1 FY2009-10. Driven by the Manza, the company’s market share in the entry-midsize segment has increased substantially to 39.5 per cent compared to 25.2 per cent in Q1 FY2009-10.

Subsidiary highlights

The Jaguar Land Rover business continued to show strong profitability, with increase in volumes coupled with significantly favourable currency movement in Q1 FY2010-11, reporting a profit before tax of GBP233.82 million (Rs1,590.25 crore). With the positive market reception of the enhanced product range in an improved market environment as well as continued cost reduction efforts, the business was able to show sustained quarter-on-quarter improvement towards solid profitability in the quarter.

Wholesale volumes for Jaguar Land Rover in Q1 FY2010-11 were 57,153 vehicles compared to 35,947 vehicles in Q1 FY2009-10. Its retail sales too improved favourably in the quarter, on the back of continued overwhelming response for Land Rover products and the newly launched XJ. There was a strong recovery across all the regions, with China standing out, registering a growth of 104 per cent.

Tata Daewoo Commercial Vehicles Company registered a 20.9 per cent growth in sales in the quarter. Tata Motors Finance, the company’s captive financing subsidiary, reported a net profit of Rs23.52 crore and improved its NPA performance through better collection efficiency.

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