Tata Motors (TMCV) Q4 13/14 earnings summary

Executive summary

• Consolidated FY 2013-14 revenue grew 23.3% YoY to ₹232,834 crore; PBT was ₹18,869 crore and PAT ₹13,991 crore, driven chiefly by Jaguar Land Rover (JLR).

• Domestic performance weakened sharply: sales fell 30.2%, market share declined to 16.6%, and standalone operating margin was -1.4% amid lower volumes, adverse mix and intense competition.

• Horizonext priorities included new products, quality improvement, customer experience, cost reduction and operational efficiency.

Financial highlights

• Consolidated gross turnover rose 22.2% YoY to ₹236,626 crore; net revenue grew 23.3% to ₹232,834 crore and EBITDA margin was 16.1%.

• Consolidated PBT increased to ₹18,869 crore from ₹13,647 crore; PAT rose to ₹13,991 crore from ₹9,893 crore.

• Standalone net revenue fell 23.4% to ₹34,288 crore; PBT was a loss of ₹1,026 crore, while PAT was ₹335 crore versus ₹302 crore.

• Standalone PAT included ₹1,966 crore profit on divestment of foreign subsidiary investments and ₹1,574 crore in subsidiary dividends; these items offset operating pressure.

• Adjusted for exceptional items, consolidated profit before tax, exceptional items and tax was ₹19,854 crore, up from ₹14,250 crore.

Outlook and guidance

• FY 2014-15 GDP growth was expected at 5%-5.5% in H1, with improvement anticipated in H2 as policy action and infrastructure spending support recovery.

• Domestic priorities: cost control, customer experience, refreshed products, operational improvement and selective international growth; pricing headroom remained limited by intense competition.

• JLR planned continued investment in new products, technologies and capacity, with China and other emerging markets central to expansion.