Tata Motors Passenger Vehicles (500570) Q4 00/01 earnings summary

Executive summary

• FY2000-01 revenue fell 9% to Rs.8,164.22 crore; a Rs.500.34 crore net loss followed a Rs.71.20 crore profit in FY1999-00.

• Cost reductions and working-capital discipline generated savings and operating cash, but the commercial vehicle downturn, lower other income and higher charges weighed on results.

Financial highlights

• Sales and income from operations were Rs.8,164.22 crore, down 9%; net sales/income from operations were Rs.8,095.79 crore versus Rs.8,789.91 crore.

• Operating profit was Rs.429.44 crore versus Rs.614.54 crore; profit before interest, depreciation and amortisation was Rs.497.87 crore versus Rs.785.77 crore.

• Loss before exceptional items was Rs.430.44 crore versus Rs.59.14 crore; after Rs.69.90 crore of exceptional charges, loss before and after tax was Rs.500.34 crore.

• Exceptional items included Rs.48.99 crore of prior-year power costs and Rs.16.71 crore employee separation cost; prior-year exceptional items were a Rs.134.34 crore gain on sale of undertakings.

Outlook and guidance

• Expected road-network investment to support commercial vehicle demand from H2 FY2001-02; a revival depended on infrastructure projects and improved road-transport economics.

• FY2001-02 performance was expected to improve, with a healthier financial position; increased Indica acceptance and capacity utilisation were key factors.

• New CV models and variants were planned for larger volumes in FY2001-02; early market feedback was encouraging.