Tata Motors Passenger Vehicles (500570) Q4 03/04 earnings summary

Executive summary

• FY2003-04 was a record year: vehicle sales reached 314,259 units, up 42.9% YoY; turnover was Rs.15,552.42 crore and standalone PAT Rs.810.34 crore.

• Consolidated revenue was Rs.16,341.04 crore and profit for the year Rs.915.29 crore, versus Rs.11,448.01 crore and Rs.297.12 crore in FY2002-03.

• Commercial vehicle leadership strengthened and passenger vehicle market share rose; the DWCV acquisition marked a major overseas expansion.

Financial highlights

• Standalone net revenue, excluding excise, rose 45.7% to Rs.13,282.12 crore; operating profit increased 65.2% to Rs.1,881.80 crore.

• Standalone PBT was Rs.1,292.34 crore versus Rs.510.37 crore; PAT was Rs.810.34 crore versus Rs.300.11 crore.

• Consolidated PBT was Rs.1,444.87 crore versus Rs.543.50 crore; PAT was Rs.915.29 crore versus Rs.297.12 crore.

• Operating cash flow rose to Rs.2,717.53 crore standalone from Rs.1,375.51 crore; consolidated operating cash flow was Rs.2,667.01 crore versus Rs.1,583.46 crore.

• Standalone total dividend was Rs.8 per share, including the Rs.4 interim dividend and proposed Rs.4 final dividend; prior-year dividend was Rs.4 per share.

Outlook and guidance

• FY2004-05 outlook centered on sustaining FY2003-04 performance, with continued road and infrastructure investment and implementation of the Draft Auto Policy viewed as supportive.

• New bus models spanning 12–60 seats were in development for introduction in FY2004-05; commercial vehicle engines were being upgraded to Bharat Stage III norms mandated from April 2005 in select cities.

• Planned product development and capital expenditure over the next five years was expected to aggregate approximately Rs.6,000 crore.