Tata Motors’ PAT halves in Q3

Mumbai, February 15, 2013: Tata Motors’ consolidated profits after tax (PAT) have halved to Rs 1,628 crore as compared to Rs 3,406 crore for the year-earlier quarter. Consolidated revenues (net of excise) were Rs 46,090 crore for Q3, up just 1.8 percent over Rs 45,260 crore for the year-earlier period as a result of strong demand and increasing volumes and products mix at Jaguar Land Rover.

On a standalone basis, Tata Motors recorded a loss of Rs 458 crore in the third quarter as against a profit of Rs 174 crore in the year-earlier period. The company’s revenues, net of excise, were Rs 10,630 crore as compared to Rs 13,338 crore in the year-earlier period. Operating margins fell to 2.2 percent as compared to 6.7 percent in the previous year.

In the local market, sales of CVs and cars (including exports) for Q3 were 205,291 units, down 11 percent over year-earlier numbers. In the CV segment, sales in Q3 were 138,963 units, driven largely by LCV sales, while passenger car sales stood at 54,675 units. Market shares for the quarter were 62 percent and 10 percent respectively for CVs and cars.

JLR sales for the quarter were up 10 percent to 94,828 units with Jaguar accounting for 15,043 units and Land Rover, 79,785 units. Growth has been driven by sales in China and in terms of models, the Evoque and Freelander. Addressing a press conference at a new flagship Mumbai dealership, managing director Karl Slym said the company has reduced its stock in the field by about 33 percent and is now operating in a build- and-sell environment. He added that the company has recently kicked off an initiative to re-organise purchasing activities and this would, in time, offer a range of cost and other efficiencies.

He said the macro-environment in India is currently stressed and for now, the company plans to improve the distribution and efficiency of the network. On the CV front, head of the CV business unit, Ravi Pisharody said that sales have been affected by the lack of investment in sectors like mining which have been virtually wiped out. The sales performance in the last quarter, normally good for CVs, has remained unchanged, he said indicating that a revival does seem likely in this quarter.

BRIAN DE SOUZA