Tata Motors (TMCV) Q4 08/09 earnings summary

Executive summary

• Standalone FY09 net revenue was Rs. 25,660.79 crore and PAT Rs. 1,001.26 crore; consolidated net revenue was Rs. 70,938.85 crore and PAT was a loss of Rs. 2,505.25 crore, with JLR acquisition limiting comparability.

• Vehicle sales totaled 506,421, down 13.5% YoY; weak demand, lower exports and a steep commercial-vehicle downturn pressured performance.

Financial highlights

• Standalone gross revenue fell 13.6% to Rs. 28,599.27 crore; operating profit declined to Rs. 1,752.44 crore from Rs. 2,931.59 crore.

• Standalone PBT fell 60.7% to Rs. 1,013.76 crore and PAT fell 50.7% to Rs. 1,001.26 crore; basic EPS was Rs. 22.70 for Ordinary Shares and Rs. 23.20 for 'A' Ordinary Shares.

• Consolidated gross revenue reached Rs. 74,151.21 crore; consolidated PBT was a loss of Rs. 2,129.25 crore and PAT a loss of Rs. 2,505.25 crore.

• Consolidated profit before depreciation, interest, amortisation, exceptional items and tax was Rs. 2,996.36 crore, down from Rs. 4,517.60 crore; margin fell to 4.2% from 12.7%.

• Operating cash flow was Rs. 1,295.02 crore standalone versus Rs. 6,179.47 crore prior year; consolidated operating cash flow was Rs. 749.83 crore versus Rs. 5,595.55 crore.

Outlook and guidance

• Recovery signs emerged late in FY09 as liquidity improved, interest rates eased and customer confidence began to recover; heavy commercial-vehicle demand was expected to remain sluggish.

• Planned priorities included new product launches, strengthening in-house vehicle financing and cost reductions; softer raw-material prices were expected to support competitiveness.

• The Gujarat Nano plant was expected to be completed in FY10 Q4; interim production targeted 50,000–60,000 Nano cars over the following 12 months.

• World Truck sales were expected to begin in H1 FY10; the Delhi Transport Corporation's 1,625-bus order was scheduled for phased delivery in FY10.