Tata Motors (TMCV) Q4 11/12 earnings summary

Executive summary

• FY 2011-12 consolidated revenue rose 35.6% to ₹165,654 crore; profit for the year reached ₹13,517 crore, led by strong Jaguar Land Rover growth.

• Standalone revenue increased 15.3% to ₹54,307 crore, but PAT fell 31.4% to ₹1,242 crore as input costs, marketing spend, and exceptional losses pressured earnings.

Financial highlights

• Consolidated gross revenue was ₹170,678 crore, up 35.0%; net revenue excluding excise was ₹165,654 crore, up 35.6% YoY.

• Consolidated operating profit was ₹23,700 crore versus ₹17,815 crore; profit before tax was ₹13,534 crore versus ₹10,437 crore.

• Standalone net revenue increased 15.3% to ₹54,307 crore; standalone PBT declined to ₹1,341 crore from ₹2,197 crore and PAT to ₹1,242 crore from ₹1,812 crore.

• Standalone exceptional items totaled ₹585 crore: ₹455 crore net exchange loss and ₹130 crore provision for a subsidiary loan; consolidated exceptional items totaled ₹832 crore.

Outlook and guidance

• Indian economic growth was forecast at 7.6% (±0.25%) for FY 2012-13; easing monetary policy and a good monsoon could support recovery, while liquidity remained a concern.

• Commodity costs and limited pricing power were expected to keep margins under pressure; priorities included cost reduction, new products, rural reach, and international CKD/SKD assembly opportunities.

• Jaguar Land Rover planned profitable volume growth, efficiency and cost management, continued technology investment, and expansion in China, Russia, India, and Brazil.