Tata Motors (TMCV) Q4 04/05 earnings summary

Executive summary

• FY05 vehicle sales reached a record 399,566 units, up 27.15% YoY; reported sales and other income were Rs.20,648.66 crore and standalone PAT hit Rs.1,236.95 crore.

• Domestic market shares rose to 59.7% in commercial vehicles and 16.9% in passenger vehicles; exports increased 38.3% by volume.

Financial highlights

• Standalone net revenue excluding excise rose 32.4% to Rs.17,585.22 crore; operating profit increased 15% to Rs.2,171.09 crore.

• Standalone PBT grew 27.8% to Rs.1,651.90 crore; PAT rose 52.7% to Rs.1,236.95 crore.

• Consolidated net revenue increased 40% to Rs.19,532.84 crore; consolidated PBT rose 28% to Rs.1,848.09 crore and PAT increased 51% to Rs.1,385.34 crore.

• Operating cash flow was Rs.1,249.82 crore, down from Rs.2,719.11 crore, mainly due to higher year-end inventories and receivables amid strong sales.

Outlook and guidance

• CV industry growth is expected to moderate for a fourth year; passenger-vehicle growth may slow but remain among the stronger automotive markets.

• New products in development are expected to support market presence; demand for personal mobility is expected to remain strong over market cycles.

• Higher steel and rubber costs, emissions and safety requirements, supply-chain adjustments, diesel prices and slower road works may weigh on FY06 production, sales and profitability.