JLR dividend is lifeline for Tata Motors, standalone Q2 PAT is Rs 703 crore

Mumbai, August 7, 2013: Helped by a dividend that amounted to Rs 1,537 crore from JLR and subsidiaries, Tata Motors reported a Profit After Tax (PAT) of Rs 703 crore for the first quarter of 2013-14 as against a PAT of Rs 205 crore in the year-earlier period. In the year-earlier quarter, Tata Motors was also helped by a Rs 253 crore dividend from its subsidiaries. According to Tata Motors’ CFO, C Ramakrishna, while the JLR dividend was announced in the first quarter this year, last year it was announced in the second quarter.

On a standalone basis, the company’s sales of CV and cars for the quarter stood at 154,352 units a fall of 19 percent as compared to the year-earlier period. On a consolidated basis, the company reported revenues (net of excise) of Rs 46,785 crore for the quarter, up 8 percent over Rs 43,324 crore in the year-earlier quarter. Consolidated PAT for the quarter was Rs 1,726 crore as compared to Rs 2,245 crore in the year-earlier period.

Meanwhile, JLR reported revenues of GBP 4,097 million (Rs 38,249 crore) for the first quarter, up 13 percent over the year-earlier GBP 3,638 million in Q1 of 2012-13 (Rs 33,964 crore). Retail sales rose 10 percent to 94,719 units with positive growth across all regions. Sales in Asia-Pacific rose the highest at 37 percent while those in its home market -- the UK -- were up 13 percent. JLR sold 2,521 units in 2012-13 in India.

Ramakrishnan said that margins would be under pressure in the coming year. While the CV division is functioning at 60 percent capacity, the passenger vehicle division is much lower, he said without giving a figure. The company, he said, has aligned both its wholesale and retail sales and in reference to the company’s decision to rationalise staff at the Pantnagar plant, it was due to prevailing market conditions.

On the product front, senior officials said that the company will look at trucks of the order of 380hp and will bring in its Ultra range as part of a focus on new products. The launch of Ultra buses is expected to take place in the fourth quarter of this year once talks on the government’s JnNURM are concluded.

Summing up, Ramakrishna said the company would continue its focus on new products and that there would be no change in its capex plans for both sectors, CVs and cars, which is about Rs 3,000 crore.

In mid-June 2013, Tata launched a range of eight refreshed vehicles including its e-max range for the Nano and Indigo. A whole lot of initiatives at the service have been launched in a move to improve overall service experience across the range.