Tata Motors Q2 Group PAT up 70 percent; standalone loss of Rs 804 crore

Mumbai, November 8, 2013: Tata Motors has reported consolidated revenues (net of excise) of Rs 56,882 crore for the quarter ended September 30, 2013, up 31 percent over Rs 43,403 crore for the corresponding quarter of the previous year, despite a weak operating environment in the India business which was more than offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR).

The consolidated PBT for the quarter was Rs 4,752 crore, a growth of 53.9 percent over Rs 3,089 crore for the corresponding quarter of 2012-13. Consolidated PAT (post minority interest and profit/loss in respect of associate companies) for the quarter was Rs 3,542 crore, up 70 percent over Rs 2,074 crore for the corresponding quarter of the previous year.

The consolidated revenues (net of excise) for H1 ended September 30, 2013 was Rs 1,03,667 crore, a growth of 19.5 percent over Rs 86,727 crore for the corresponding period last year. The consolidated profit before tax for the half-year ended September 30, 2013 was Rs 7,679 crore, a growth of 22.5 percent over Rs 6,271 crore for the corresponding period last year. The consolidated profit after tax (post minority interest and profit/loss in respect of associate companies) for the half-year ended September 30, 2013, was Rs 5,268 crore, a growth of 22 percent over Rs 4,320 crore for the corresponding period last year.

As far as standalone figures go, sales (including exports) of commercial and passenger vehicles for the quarter ended September 30, 2013, stood at 1,50,930 units, a fall of 32.5 percent as compared to the corresponding quarter last year. The revenues (net of excise) for the quarter ended September 30, 2013 stood at Rs 8,868 crore as compared to Rs 12,481 crore for the corresponding quarter last year. The company posted a loss of Rs. 804 crore during the quarter.

A continuing slowdown, low level of transport freight and infrastructure activity, frequent diesel price increases and tight financing environment, impacted the industry, the company said.

The commercial vehicle industry – the company’s strongest connect with the automobile market, declined in the July-September, 2013 quarter over the corresponding period last year, led by a fall of 34 percent in the M&HCV segment. Further, competitive pressures on pricing in certain segments affected operating margins. However, product and market initiatives enabled it to sustain its strong market share. The OM for the quarter ended September 30, 2013 stood at 2.0 percent. Loss before and after tax for the quarter ended September 30, 2013, was Rs 984 crore (after considering dividend from the subsidiaries amounting to Rs 10 crore and loss on account of exceptional item of Rs 282 crore) and Rs 804 crore, respectively, against profit before and after tax of Rs 1,024 crore and Rs 867 crore, respectively, for the corresponding quarter last year.

The revenues (net of excise) for the half-year ended September 30, 2013, stood at Rs 17,973 crore as compared to Rs 23,068 crore in the corresponding period last year. Loss before and after tax for the half-year was Rs 230 crore and Rs 100 crore, respectively, against the profit before and after tax of Rs 1,261 crore and Rs 1,072 crore, respectively, for the corresponding period last year.

Tata Motors says it is taking steps to restructure its cost structure to be more competitive in the market. As part of the company’s strategy to improve its financial performance, it will restructure some of its overseas businesses. Tata Motors currently has a net debt of Rs 19,000 crore.