Tata Motors (TMCV) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue from operations rose 7.6% YoY to ₹295,409 crore; EBITDA margin was 10.6%, and PAT after JV/associate profit was ₹9,091 crore vs ₹7,557 crore.

• Reported PBT of ₹11,155 crore included a ₹3,609 crore JLR pension credit and a ₹1,641 crore impairment charge.

• Standalone revenue net of excise rose 31.6% to ₹58,457 crore; net loss narrowed to ₹1,035 crore from ₹2,430 crore.

Financial highlights

• Consolidated income from operations increased to ₹295,409 crore from ₹274,492 crore; adverse GBP-to-INR translation reduced revenue by ₹3,192 crore.

• Consolidated attributable net income reached ₹8,989 crore vs ₹7,454 crore; reported EBIT, under the defined measure, was ₹13,478 crore vs ₹11,846 crore.

• Consolidated cash from operations was ₹23,857 crore vs ₹30,199 crore; capital expenditure was ₹42,672 crore vs ₹31,751 crore.

• Standalone EBITDA margin increased to 5.8% from 3.4%; standalone PBT before exceptional items and tax improved to ₹20 crore from a ₹2,015 crore loss.

Outlook and guidance

• FY19–FY21 EBIT targets, post product-development cost policy changes: standalone 3–5%, JLR 4–7%; long-term targets are 5–7% and 7–9%, respectively.

• India PV industry growth was expected at 8–10% in FY19, with CV growth at low double digits.

• JLR plans an electrified option across all new vehicles from 2020 and targets 16 nameplates by FY24, up from 12 in FY18.

• Turnaround 2.0 priorities: win decisively in CV, win sustainably in PV, and embed turnaround practices across the organization.