Tata Motors' numbers for 2010-11 are a testimony to globalisation more than anything else. The diverse product offering across multiple regions has helped it to put up a good show in the financial year, despite the margin conundrum automakers face in the domestic market.
The company’s net profit zoomed 260 per cent to Rs 9,273 crore, from Rs 2,571 crore in 2009-10. Analysts say most of this is due to the turnaround in Jaguar and Land Rover operations. On a standalone basis, the fourth quarter results for the domestic market are below expectations.
Net revenues of the company in the domestic market grew 35 per cent to Rs 48,040 crore for 2010-11. Profit after tax has come in lower for domestic operations at Rs 1,812 crore, compared to Rs 2,240 crore in the previous year. The cost push is highly evident in the India market, as margins have shrunk from 11.7 per cent in 2009-10 to 9.9 per cent in 2010-11.Even as the market was expecting a sharp jump in Ebitda (earning before interest, taxes, depreciation and amortisation) and the company has managed a positive surprise there by clocking a 106.4 per cent growth in Ebitda at Rs 17,780 crore on a consolidated basis for the full year. It’s been a watershed year for the company, as it attained several milestones. The company’s global sales crossed the one million mark this year.
The figures have been driven by a handsome turnaround in Jaguar and Land Rover operations, on the back of demand revival in markets like China and USA.
In the domestic market, the company’s sold 836,629 units (including commercial and passenger vehicles), representing a growth of 25.2 per cent over the previous year. The company’s commercial vehicle sales increased 22.7 per cent annually to 458,828 units. The company’s market share in the commercial vehicle market stood at 61.8 per cent.
Passenger vehicles, including Fiat, Jaguar and Land Rover, distributed in India, grew 23 per cent year-on-year in the domestic market to 319,712 units. Nano has emerged as the best-selling vehicle, with annual sales touching 100,000. However, sales of Indica have remained flat, claim analysts.