Tata Motors (TMCV) Q4 12/13 earnings summary

Executive summary

• Consolidated net revenue rose 14% YoY to ₹188,818 crore; profit for the year fell to ₹9,893 crore from ₹13,517 crore, mainly reflecting a prior-year JLR tax credit.

• Strong JLR growth contrasted with weaker standalone performance: domestic demand, lower volumes, adverse mix and competition pressured margins and earnings.

Financial highlights

• Consolidated gross revenue increased 13.4% to ₹193,584 crore; EBITDA margin was 14.1%, versus 14.3% in FY 2011-12.

• Consolidated PBT was ₹13,633 crore versus ₹13,534 crore; PAT was ₹9,893 crore versus ₹13,517 crore.

• Standalone net revenue declined 17.6% to ₹44,766 crore; PBT fell to ₹175 crore from ₹1,341 crore, and PAT to ₹302 crore from ₹1,242 crore.

• Standalone EBITDA margin decreased to 4.8% from 8.1%; basic EPS was ₹0.93 for ordinary shares and ₹1.03 for 'A' ordinary shares.

Outlook and guidance

• FY 2013-14 outlook was cautiously optimistic, with expected marginal improvement in India; M&HCV recovery was expected to lag pending policy action and infrastructure spending.

• Focus areas included cost management amid pricing pressure, improved customer experience, international market growth, and JLR investment in products, technologies and capacity.

• Planned JLR launches included eight new or refreshed products during the year.