Tata Motors registers profits and inducts Cyrus Mistry on Board: Stock price slumps over 9 percent

Tata Motors announced their quarterly results after the market closed yesterday. Even after announcing a positive report for Q4 FY 2011-2012, Tata Motors shares have declined by over 9% and are currently trading at day’s low of 250.20 (11:16 AM IST). Tata Motors closed at 275.75 on the NSE yesterday.

The main reason behind the drastic fall in Tata Motors share price is majorly because margins of Jaguar Land Rover failed to meet market expectations. Apart from that, Morgan Stanley, the Global Investment Bank, downgraded Tata Motors after two years of upgrades. These two blows has affected Tata Motors share price and resulted in a decline of over 9%.

According to Mr Mahantesh Sabarad, Senior VP, at Fortune Equity Brokers, “The Ebitda margins for JLR were weak, which markets were not factoring in, but the overall outlook for Tata Motors remains good.”

12:24 PM UPDATE : The stock has lowered even further, 247.10 being the low price of the day.

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Cyrus P. Mistry inducted to the Tata Motors Board

Mumbai, May 29, 2012: Mr. Cyrus P. Mistry, Deputy Chairman of Tata Sons, has been inducted to the Board of Tata Motors as a Director.

A Director of Tata Sons since 2006, he was appointed as Deputy Chairman of Tata Sons in November 2011. He is also a Director of Tata Industries Limited, Tata Steel Limited, Tata Power Company Limited, Tata Teleservices Limited and Tata Consultancy Services Limited.

Mr. Mistry is a graduate of Civil Engineering from the Imperial College, the UK, and has an M.Sc in Management from the London Business School.

Consolidated Net Revenue grows by 36°/o to Rs 165,655 crores in FY 2011-12
Consolidated Profit grows 46°/o to Rs. 13,517 crores (Rs. 9,274 crores in FY 2010-11)

Consolidated Financial Results for the Quarter and Year ended March 31, 2012

Mumbai, May 29, 2012: Tata Motors today reported consolidated revenues (net of excise) of Rs.50,908 crores for the quarter ended March 31, 2012, posting a growth of 44.3°/o over Rs. 35,287 crores in the corresponding quarter of the previous year on the back of strong growth in volumes across products and markets. The Consolidated Profit before Exceptional item and Tax was Rs.4,596 crores, posting a growth of 68.1o/o over Rs. 2,734 crores in the corresponding quarter of the previous year. The Consolidated Profit before Tax (PBT) for the quarter was Rs.4,424 crores, compared to Rs. 2,911 crores for the corresponding quarter of the previous year. The Consolidated Profit (after tax and post minority interest and profit in respect of associate companies) for the quarter was Rs.6,234 crores, as compared to Rs.2,638 crores in the corresponding quarter of the prev1ous year.

The consolidated revenue (net of excise) for FY 2011-12, was Rs. 165,655 crores posting a growth of 35.6% over Rs. 122,128 crores in the corresponding period last year. The Consolidated Profit before Exceptional item and Tax was Rs 14,366 crores, posting a growth of 40.8%, over Rs 10,206 crores in the corresponding period last year. The Consolidated Profit before Tax (PBT) for the year was Rs. 13,534 crores, compared to Rs. 10,437 crores for the corresponding period last year. The Consolidated Profit for the period (after tax and post minority interest and profit in respect of associate companies) was Rs.13,517 crores, as compared to Rs. 9,274 crores in the corresponding period last year.

Tata Motors Stand-alone Financial Results for the Quarter and Year ended March 31, 2012

Tata Motors standalone revenues (net of excise) for the Quarter ended March 31, 2012 of Rs. 16,391 crores represented a growth of 14.4°/o over Rs. 14,326 crores in the corresponding period last year. Growth in volumes, and reduction in marketing costs resulted in an improvement in Operating margins to 9.5o/o for the Quarter ended March 31, 2012 over 8.9°/o for the corresponding period last year. The Operating Profit (EBITDA) stood at Rs. 1,561 crores in the quarter, a growth of 22.1o/o over Rs. 1,278 crores in the corresponding period last year.

The PBT for the quarter is Rs. 652 crores as compared to Rs. 591 crores in the corresponding period last year and the PAT for the quarter is Rs. 565 crores as compared to Rs. 573 crores in the corresponding period last year.

The standalone revenues (net of excise) for FY 2011-12, at Rs. 54,307 crores posted a growth of 15.3% over Rs. 47,088 crores in the corresponding period last year. The Standalone Profit before Tax (PBT) for FY 2011-12 was Rs. 1,341 crores, compared to Rs. 2,197 crores for FY 10-11. The Standalone Profit after Tax for FY 2011-12 was Rs. 1,242 crores, as compared to Rs.1,812 crores in FY 10-11.

The Standalone Profit Before Tax and Profit After Tax for FY 2011-12 were impacted by Exceptional items of Rs 585 crores (Rs. 147 crores in FY 2010-11) on account of exchange loss (net) including on revaluation of foreign currency borrowings, deposits and loans arising from the depreciation of Indian Rupee (INR) and provision made for certain investments in 100°/o subsidiary Tata Hispano Motors Carrocera SA, Spain arising from continuous underperformance impacted by challenging market conditions.

Tata Motors’ sales (including exports) of commercial and passenger vehicles for FY 2011-12, stood at 926,353 units, representing a growth of 10.7% as compared to the corresponding period last year.

In the domestic market, the Company’s commercial vehicles sales for the Quarter ended March 31, 2012, stood at 155,672 units, an increase of 16.2%> over the corresponding period last year. The commercial vehicles sales during FY 2011-12 increased by 15.7 °/o to 530,204 units, as compared to the corresponding period last year. The Company’s market share in commercial vehicles was 59.4% for FY 2011-12.

Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 18.1°/o to 112,470 units in the domestic market for the Quarter ended March 31, 2012, as compared to the corresponding period last year. Sales for FY 2011-12 grew by 4.0°/o to 333,044 units, as compared to the corresponding period last year. Focused marketing initiatives and network actions have positively influenced sales. The market share in passenger vehicles stood at 13.1°/o for FY 2011-12 largely driven by sales in the recent quarters. The market share in Passenger vehicles for
Q4 FY12 stood at 14.2%.

Jaguar Land Rover PLC – (figures as per IFRS)

Jaguar Land Rover Sales for the Quarter ended March 31, 2012, grew 48.2°/o to 98,021 units. Of this, the Jaguar volumes for the period stood at 14,118 units and Land Rover volumes stood at 83,903 units. The recently launched new products continue to receive positive response. The newly launched Range Rover Evoque, clocked approximately 60,217 wholesale units till March 2012. Sales from the China region grew strongly and comprised 19.0°/o of total volumes for the Quarter ended March 31, 2012 as against 12.8°/o for the corresponding period last year.

Jaguar Land Rover sales for FY 2011-12, stood at 314,433 units, the highest ever, representing a growth of 29.1°/o as compared to the corresponding period last year supported by new product actions and strong demand in China and other developing markets. The Jaguar volumes for the period stood at 54,039 units and Land Rover volumes stood at 260,394 units.

Revenues for the Quarter ended March 31, 2012, of GBP 4,144 million represented a growth of 51.5°/o over GBP 2,735 million in the corresponding quarter last year. Operating margins for the Quarter ended March 31, 2012, stood at 14.6°/o and an Operating Profit (EBITDA) of GBP 605 million in the quarter, a growth of 61.5o/o over GBP 375 million in the corresponding quarter last year. Continued strong revenue and profit performance was supported by volume growth, market mix, product mix and favorable exchange rates. The PST for the quarter is GBP 530 million (GBP 299 million in the corresponding quarter last year) and the PAT for the quarter is GBP 696 million (GBP 262 million in the corresponding quarter last year). The PAT includes an amount of GBP 217 million (additional GBP 171 million through Reserves) of previously unrecognized deferred tax assets, due to uncertainty about future recoverability which have now been recognized due to sustained improvement in business performance and certainty of future profitability outlook.

The revenues for FY 2011-12, at GBP 13,512 million represented a growth of 36.9% over GBP 9,871 million in the corresponding period last year. Operating margins for the FY 2011-12, stood at 15.0°/o and an Operating Profit (EBITDA) of GBP 2,027 million, a growth of 35.0°/o over GBP 1,502 million in the corresponding period last year. The Profit before Tax (PBT) for FY 2011-12 is GBP 1,507 million as compared to GBP 1,115 million     for FY 10-11. The Profit After Tax for FY 2011-12 is GBP 1,481 million as compared to GBP 1,036 million in FY 10-11.

In March 2012, JLR successfully raised bonds of £500 million with a coupon of 8.25°/o and tenor of 8 years. The full proceeds were retained at JLR for future use in the company’s business. This was an opportunistic fund raising which enabled JLR reinforce its market acceptance and demonstrated the confidence of the investors while continuing to support steps taken towards strengthening capital structure and extending the debt maturity profile.

In March 2012, JLR announced that it has signed a joint venture agreement with Chery Automobile Company Ltd to build vehicles for the Chinese market which is currently under the process for regulatory approvals by the Chinese authorities.

In March 2012, JLR approved the consolidation businesses of Jaguar Cars Limited and Land Rover into one legal entity to be named Jaguar Land Rover Limited. The consolidation is expected to become effective later this year.

Tata Daewoo

Tata Daewoo Commercial Vehicles Co. Ltd. registered net revenues of KRW. 767     billion, and recorded a Net profit of KRW 3.6 billion in FY 2011-12.

Tata Motors Finance

Tata Motors Finance Ltd, the Company’s captive financing subsidiary, registered net revenues of Rs. 2,018 crores and reported a Profit After Tax of Rs. 240 crores in FY 2011-12.

Dividend

The Board of Directors has recommended dividend of Rs 4/- per Ordinary Share of Rs 2/- each and Rs 4.10 per ‘A’ Ordinary Shares of Rs 2/- each for the financial year 2011-12 (previous year Rs 20/­ per Ordinary Share of Rs 10/- each and Rs 20.50 per ‘A’ Ordinary Shares of Rs 10/- each), subject to approval of the Shareholders. Tax on dividend will be borne by the Company.