Tata Motors (TMCV) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated net revenue rose 12.9% to ₹262,796 crore; net profit was nearly flat at ₹13,986 crore, as strong JLR results offset losses in standalone operations.

• Standalone net revenue increased 5.9% to ₹36,295 crore, but the net loss widened to ₹4,739 crore from profit of ₹335 crore; no dividend was recommended.

• JLR delivered a fifth consecutive year of growth, while domestic market-share losses and intense competition weighed on Indian operations.

Financial highlights

• Consolidated revenue from operations, net of excise, reached ₹262,796 crore, up 12.9% YoY; gross turnover rose 12.6% to ₹266,345 crore.

• Consolidated PBT increased to ₹21,703 crore from ₹18,869 crore; profit for the year was ₹13,986 crore versus ₹13,991 crore.

• Standalone operating loss was ₹800 crore versus ₹467 crore; reported net loss was ₹4,739 crore versus profit of ₹335 crore.

• Standalone other income fell to ₹1,881 crore from ₹3,833 crore; FY14 included a ₹1,966 crore gain on subsidiary investment divestments.

• Consolidated capital expenditure was ₹34,890 crore, up from ₹28,279 crore; operating cash flow was ₹35,183 crore versus ₹36,151 crore.

Outlook and guidance

• FY16 India M&HCV trucks expected to grow, supported by fleet replacement and infrastructure and industrial demand; passenger-car and utility-vehicle sales outlook also improved.

• Competitive pressure and limited pricing headroom keep cost management central; priorities include customer experience, quality, product launches and growth in selected international markets.

• JLR plans to ramp up China production and continue investing in new products, Ingenium engines and strategic capacity; Brazil production was expected to begin in 2016.

• FY16 investment plan was ~₹388bn for new products and technologies, with most funding expected from operating cash flow and available liquidity.