Tata Motors net vrooms 102-fold

Healthy growth in volumes at its Jaguar Land Rover operations pulled up Tata Motors consolidated revenues by 36% to Rs 28,782 crore for the quarter ended September 30,2010,against Rs 21,088.45 crore for the same period last year.

Healthy growth in volumes at its Jaguar Land Rover (JLR) operations pulled up Tata Motors consolidated revenues by 36% to Rs 28,782 crore for the quarter ended September 30,2010,against Rs 21,088.45 crore for the same period last year. The company beat Street expectations with a more-than-expected consolidated net profit of Rs 2,222.99 crore for the quarter ended September 30,2010,against Rs 21.78 crore during the same period last year. The company also appointed Ralf Speth,CEO,JLR on its board.

JLR has witnessed a growth of 21% in its retail volumes in the September quarter to 56,420 units as against 46,793 units. The brands saw a significant growth in volumes on a year-on-year basis with markets like China at 72%,North America at 27%,Russia at 52% and Europe excluding Russia at 14%. UK saw a minimal growth of 3% and other markets,2%. JLRs profit after tax for the quarter ended September 30,2010,stood at £2 38.1 million against a loss of £60.4 million during the same period last year. The brands saw a significant improvement in the EBITDA margins at 16.6% for the quarter under consideration as against 2.9% in the same period last year. This was on the back of better product mix,market expansion,exchange fluctuations and impact of cost control measures adopted by the company. However,C Ramakrishnan,chief financial officer,Tata Motors,said,Exchange rates could impact the profitability of JLR going ahead while the engine supply constraints continue to impact production.

Recently,Tata Motors announced its plans to retain all the three plants in the UK region and said it was on the back of the revived demand for its products. It is planning to set up an assembly line in India and China. On a standalone basis,Tata Motors net profit was down by 41% to Rs 432.70 crore for the September quarter of 2010 against Rs 729.14 crore for the same period last year. Total income of the company stood at Rs 11,504.07 crore for the said quarter against Rs 79,77.76 crore. During the September quarter last financial year and first half of last financial year,the company had Rs 369.71 crore and Rs 688.61 crore respectively as profits on sale of investments which was not liable to tax. Therefore,excluding the above,the year-on-year growth in net profit for Q2 FY’11 and H1 FY’11 was 21% and 50% respectively,the company said. Tata Motors EBITDA margins stood at 9.7% for September quarter as against 13.4%. The net automotive debt / equity stood at 1.73 as on September 30,2010 (1.16 on a proforma basis post QIP issuance.)

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Overall capex spend of Rs 4,300 crore in H1 FY11. Of which,JLR £410 million and Tata Motors Rs 1,200 crore. The consolidated automotive debt on Tata Motors accounts is Rs 26,000 crore. On a standalone basis,it is Rs 16,000 core,said Ramakrishnan.

Talking to the media persons here,PM Telang,managing director India operations,Tata Motors,said,We are seeing some stability in the commodity prices and will continue to look at right measures in terms of price hikes when required. It also said it will be making additional investments to ramp up capacity to 300,000 units in Pantnagar,Uttarakhand plant on a two shift basis in Q4 FY 11.

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