Tata Motors (TMCV) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 delivered record vehicle sales of 454,129 units and turnover of Rs.24,293.23 crore; sales volume rose 14% and turnover 18% YoY.

• Standalone PAT rose 24% to Rs.1,528.88 crore; consolidated PAT increased 24.74% to Rs.1,728.09 crore.

• Performance outpaced a challenging domestic market, supported by commercial vehicle leadership, exports, new launches and expanded vehicle financing.

Financial highlights

• Standalone net revenue, excluding excise duty, rose 18.8% to Rs.20,891.31 crore; operating profit was Rs.2,579.69 crore and EBITDA was Rs.2,868.80 crore.

• Standalone PBT rose 24.3% to Rs.2,053.38 crore; PAT increased 23.6% to Rs.1,528.88 crore, with basic EPS of Rs.40.57, up 18%.

• Consolidated net revenue rose 21.43% to Rs.23,718.17 crore; PBT increased 27.10% to Rs.2,348.98 crore and PAT advanced 24.74% to Rs.1,728.09 crore.

• Recommended dividend was Rs.13 per ordinary share, versus Rs.12.50 including special dividend in FY 2004-05.

• Export volumes reached a record 50,223 vehicles, up 65% YoY; overseas sales represented 11.1% of total sales, versus 7.6%.

Outlook and guidance

• FY 2006-07 plans include further commercial vehicle sales growth through cargo and passenger launches, increased overseas volumes and passenger vehicle growth supported by a healthy product pipeline.

• Planned investment of ~Rs.10,000 crore over 3-4 years for product development, capacity expansion, plant renewal and modernization, and acquisitions or alliances.

• Proposed resource raising of up to Rs.3,000 crore through domestic or international securities to support growth investment and other permitted corporate purposes.

• Small car styling and design were complete, with plant testing underway; launch expected in early 2008 at ~Rs.100,000, with a manufacturing site planned near Kolkata.