Tata Motors Passenger Vehicles (500570) Q4 05/06 earnings summary

Executive summary

• FY2005-06 delivered record sales and revenue; vehicle volumes rose 13.7% to 454,129, while profit after tax increased 23.6% to Rs.1,528.88 crore.

• Commercial-vehicle leadership strengthened and passenger-vehicle sales reached a record; exports rose 64.7% to 50,223 vehicles.

Financial highlights

• Sales of products and other income reached Rs.24,293.23 crore; net of Rs.3,401.92 crore excise duty, revenue was Rs.20,891.31 crore vs Rs.17,585.22 crore YoY.

• Operating profit was Rs.2,579.69 crore; profit before interest, depreciation and amortization was Rs.2,868.80 crore vs Rs.2,337.18 crore.

• PBT rose 24.3% to Rs.2,053.38 crore; PAT increased 23.6% to Rs.1,528.88 crore, with tax expense of Rs.524.50 crore.

• Exceptional items were a net Rs.5.65 crore expense vs Rs.13.85 crore income; separately, a Rs.164.30 crore gain arose from diluting the Telcon stake.

Outlook and guidance

• FY06-07 plans include further commercial-vehicle sales growth through new cargo and passenger products, plus increased overseas volumes.

• Passenger-vehicle industry growth was expected to be double digit; the product pipeline and small-car excise benefit were expected to support above-industry growth.

• The rear-engine, 4-5-seat small car was targeted for early 2008 launch at about Rs.100,000; manufacturing-site steps near Kolkata had begun.