Tata Motors (TMCV) Q4 15/16 earnings summary

Executive summary

• FY2015-16 marked a return to standalone profitability and continued consolidated growth, led by Jaguar Land Rover and a recovery in domestic M&HCVs.

• Consolidated revenue rose 4.7% to ₹275,561 crore, while profit for the year fell 21.2% to ₹11,024 crore; standalone PAT recovered to ₹234 crore from a ₹4,739 crore loss.

Financial highlights

• Consolidated net revenue was ₹275,561.11 crore, up 4.7% YoY; PAT was ₹11,023.75 crore, down 21.2%, and PBT declined to ₹13,980.87 crore from ₹21,702.56 crore.

• Standalone net revenue rose 16.7% to ₹42,369.82 crore; PAT was ₹234.23 crore versus a ₹4,738.95 crore loss in FY2014-15.

• Standalone operating profit was ₹2,740.15 crore versus a loss of ₹800.01 crore; EBITDA margin recovered to 6.5% from negative 2.2%.

• JLR revenue rose 1.6% to £22,208 million, while PBT fell 40.4% to £1,557 million and PAT fell 35.6% to £1,312 million.

Outlook and guidance

• FY2017 M&HCV truck demand was expected to grow on fleet replacement and infrastructure and industrial demand; LCVs were also expected to post positive growth.

• Faster growth and improved consumer sentiment were expected to support Indian passenger cars and utility vehicles; tight pricing and competition put emphasis on cost management to protect margins.

• The transformation programme was expected to take 2–3 years, targeting growth, improved market share, quality, cost-efficient operations and higher productivity.

• JLR expected FY2017 capital expenditure of £3.75 billion, with 43% for R&D and 57% for tangible fixed assets and other investments.