Tata Motors’ July-Sept net profit speeds up 71% on JLR drive
9 Nov 2013 7:51 PM GMT
Auto major Tata Motors on Friday reported 70.71 per cent increase in its consolidated net profit to Rs 3,541.86 crore for the second quarter ended September 30. The company had posted a consolidated net profit of Rs 2,074.73 crore in the same period last fiscal, Tata Motors said in a statement. However, the company’s standalone results highlighted a quarterly loss before and after tax of Rs 984 crore and Rs 804 crore respectively against profit before and after tax of Rs 1,024 crore and Rs 867 crore respectively for the same quarter of the previous fiscal.
First half revenues stood at Rs 17,973 crore compared to Rs 23,068 crore for last fiscal’s corresponding period, while the six-month loss before and after tax for was Rs 230 crore and Rs 100 crore respectively against Rs 1,261 crore and Rs 1,072 crore for same period last year.
The consolidated financial results showed a growth of 31.1 per cent in consolidated revenues of Rs 56,882 crore for the second quarter of 2013 over the same period last year. The weak environment in Indian business was offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR).
Jaguar Land Rover’s second quarter wholesale and retail volumes grew 31.6 per cent and 21.1 per cent respectively over the corresponding quarter of FY13 with 101,931 units over 103,644 units last year and revenues of £4,612 million (growth of 40.3 per cent) over £3,288 million in Q2 of FY13. Operating profit (EBITDA) of £823 million in Q2 of FY14 represented a growth of 69.3 per cent over £486 million in Q2 of FY13.
Tata Motors Managing Director Karl Slym said that while business passengers car performance was as expected, the country’s impacted economy witnessed medium and heavy duty truck business down by 50 per cent in the last two years with volumes being halved despite the market share remaining the same.
‘Our volumes have been impacted greatly and we are selling less than expected. About Tata Motors’ standalone, we have made huge amount of adjustments in our cost structure. It’s up to us to support the Industry in lobbying at Government level about the power of the auto industry and for providing incentives alongside expected support,’ he said.
Asked whether further slippages are expected, Slym replied, ‘With today’s environment, we are trying to convert the cost structure. We are continuing to spend money on new products and recognize opportunities while focusing on long term — despite the present environment — to keep our business in healthy condition.’
Tata Motors Chief Financial Officer C Ramakrishnan said that the continued slowdown in economic activity, low level of transport freight and infrastructure activity, frequent diesel price increases and tight financing environment impacted the industry during the quarter.
Commercial vehicle industry declined in July-September 2013 with a fall of 34 per cent in the cyclical MHCV Truck segment and while competitive pressures in pricing in certain segments impacted the operating margins, the company’s products and market initiatives enables it to sustain its market share, he said.
He added that while the above average monsoon was expected to improve rural consumption growth, government approval of stalled projects worth Rs 3.20 lakh crore after June 13 would spur manufacturing activity and generate truck demand in the near term.
Replying to a question, JLR Chief Executive Officer Dr Ralf Speth said that while China was the biggest market on earth today, growing JLR’s global footprint was necessary and included opening a cluster in Saudi Arabia as a good opportunity to be the premium manufacturer there.
‘We have 20 to 22 per cent volume sales in China where Land Rover is the premium player there with enough room to grow further,’ he said.
Tata Motors Executive Director (Commercial Vehicles) Ravi Pisharody said that where truck buyers were concerned, their fleets have always demanded discounts and got it — even in the best of times.’But truck sales are declining year on year due to financing restrictions and also due to cargo segment (long distance transportation) requirements going down,’ he said.
Tata Motors President (Passenger Vehicles) Ranjit Yadav said that the Nano is being positioned as a ‘smart city’ vehicle and enjoying a good demand ‘even as we go forward’. Shares of Tata Motors closed at Rs 385 apiece on the Bombay Stock Exchange (BSE) on Friday, up 1.29 per cent from the previous close.
First half revenues stood at Rs 17,973 crore compared to Rs 23,068 crore for last fiscal’s corresponding period, while the six-month loss before and after tax for was Rs 230 crore and Rs 100 crore respectively against Rs 1,261 crore and Rs 1,072 crore for same period last year.
The consolidated financial results showed a growth of 31.1 per cent in consolidated revenues of Rs 56,882 crore for the second quarter of 2013 over the same period last year. The weak environment in Indian business was offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR).
Jaguar Land Rover’s second quarter wholesale and retail volumes grew 31.6 per cent and 21.1 per cent respectively over the corresponding quarter of FY13 with 101,931 units over 103,644 units last year and revenues of £4,612 million (growth of 40.3 per cent) over £3,288 million in Q2 of FY13. Operating profit (EBITDA) of £823 million in Q2 of FY14 represented a growth of 69.3 per cent over £486 million in Q2 of FY13.
Tata Motors Managing Director Karl Slym said that while business passengers car performance was as expected, the country’s impacted economy witnessed medium and heavy duty truck business down by 50 per cent in the last two years with volumes being halved despite the market share remaining the same.
‘Our volumes have been impacted greatly and we are selling less than expected. About Tata Motors’ standalone, we have made huge amount of adjustments in our cost structure. It’s up to us to support the Industry in lobbying at Government level about the power of the auto industry and for providing incentives alongside expected support,’ he said.
Asked whether further slippages are expected, Slym replied, ‘With today’s environment, we are trying to convert the cost structure. We are continuing to spend money on new products and recognize opportunities while focusing on long term — despite the present environment — to keep our business in healthy condition.’
Tata Motors Chief Financial Officer C Ramakrishnan said that the continued slowdown in economic activity, low level of transport freight and infrastructure activity, frequent diesel price increases and tight financing environment impacted the industry during the quarter.
Commercial vehicle industry declined in July-September 2013 with a fall of 34 per cent in the cyclical MHCV Truck segment and while competitive pressures in pricing in certain segments impacted the operating margins, the company’s products and market initiatives enables it to sustain its market share, he said.
He added that while the above average monsoon was expected to improve rural consumption growth, government approval of stalled projects worth Rs 3.20 lakh crore after June 13 would spur manufacturing activity and generate truck demand in the near term.
Replying to a question, JLR Chief Executive Officer Dr Ralf Speth said that while China was the biggest market on earth today, growing JLR’s global footprint was necessary and included opening a cluster in Saudi Arabia as a good opportunity to be the premium manufacturer there.
‘We have 20 to 22 per cent volume sales in China where Land Rover is the premium player there with enough room to grow further,’ he said.
Tata Motors Executive Director (Commercial Vehicles) Ravi Pisharody said that where truck buyers were concerned, their fleets have always demanded discounts and got it — even in the best of times.’But truck sales are declining year on year due to financing restrictions and also due to cargo segment (long distance transportation) requirements going down,’ he said.
Tata Motors President (Passenger Vehicles) Ranjit Yadav said that the Nano is being positioned as a ‘smart city’ vehicle and enjoying a good demand ‘even as we go forward’. Shares of Tata Motors closed at Rs 385 apiece on the Bombay Stock Exchange (BSE) on Friday, up 1.29 per cent from the previous close.
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