Tata Motors (TMCV) Q4 06/07 earnings summary

Executive summary

• FY07 delivered record revenue and volumes: 580,280 vehicles sold, up 28% YoY; turnover reached Rs 31,885 crore, up 33%.

• Domestic CV share rose 2.6 percentage points to 63.8%; passenger-vehicle share held at 16.5%.

Financial highlights

• Net revenue, excluding excise, rose 33.3% to Rs 27,535.24 crore; operating profit increased to Rs 3,313.72 crore from Rs 2,575.68 crore.

• PBT increased 25.3% to Rs 2,573.18 crore; PAT rose 25.2% to Rs 1,913.46 crore; basic EPS was Rs 49.76, up 22.7%.

• Consolidated net revenue increased 36% to Rs 32,426.41 crore; consolidated PBT rose 31% to Rs 3,088.14 crore and PAT rose 26% to Rs 2,169.99 crore.

• Net cash from operations was Rs 2,210.13 crore versus Rs 221.03 crore used in FY06, after working-capital movements and vehicle-financing deployment.

Outlook and guidance

• FY08 industry growth outlook remained positive but lower than FY07; new products, wider geographic reach and expanded manufacturing were planned to support growth.

• Small-car launch remained targeted for H1 2008; the Singur plant was under construction with planned capacity of 250,000 vehicles annually.

• An aggressive new-product programme was planned over the next two years, including the small car targeted at around Rs 1 lakh.

• Rising materials costs, higher consumer interest rates, tighter liquidity and possible construction slowdown were cited as risks to demand and profitability.