Tata Motors lost 2.21% to Rs 290.15 at 9:17 IST on BSE after consolidated net profit fell 52.2% to Rs 1628 crore on 1.8% growth in revenue to Rs 46090 crore in Q3 December 2012 over Q3 December 2011.
The company announced Q3 results after market hours on Thursday, 14 February 2013.
Meanwhile, the BSE Sensex was down 45.42 points or 0.23% at 19,451.76.
On BSE, 80,000 shares were traded in the counter as against average daily volume of 11.75 lakh shares in the past one quarter.
The stock hit a high of Rs 291.80 and a low of Rs 288 so far during the day. The stock had hit a record high of Rs 337.05 on 10 January 2013. The stock had hit a 52-week low of Rs 202.95 on 26 July 2012.
The stock had underperformed the market over the past one month till 14 February 2013, sliding 9.54% compared with the Sensex's 2.06% fall. The scrip had, however, outperformed the market in past one quarter, surging 6.96% as against Sensex's 4.72% rise.
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The large-cap automobile major has equity capital of Rs 637.95 crore. Face value per share is Rs 2.
Tata Motors' earnings before interest, taxation, depreciation and amortization (EBITDA) declined 14.93% to Rs 6144 crore in Q3 December 2012 over Q3 December 2011. EBITDA margin dropped to 13.3% in Q3 December 2012 from 16% in Q3 December 2011.
Tata Motors attributed the small growth in revenue to strong demand, growth in volumes and favourable market mix at Jaguar Land Rover (JLR). The company said JLR's revenue for the quarter ended December 2012 of GBP 3,804 million represented a growth of 1.5% over GBP 3,749 million during the corresponding quarter last year. JLR's operating profit (EBITDA) stood at GBP 533 million in the quarter, lower than GBP 639 million during the corresponding quarter last year. JLR's operating margin for the quarter ended 31 December 2012 stood at 14%, lower than a strong quarter a year ago period, reflecting product mix, the ongoing effect of higher marketing costs compared to the low levels experienced in Q3 of the prior year, launch costs of the all-new Range Rover, run out of the earlier Range Rover, and continued growth in product investments and related costs to support future business growth. JLR's profit before tax for the quarter ended 31 December 2012 was GBP 404 million, lower than GBP 509 million in the corresponding quarter last year. JLR's profit after tax for the quarter was GBP 296 million, lower than GBP 393 million in the corresponding quarter last year.
JLR issued new 10 year bond of $500 million at 5.625% per annum during January 2013.
With regard to the future business plan of JLR, Tata Motors said that JRL will focus on continuing the launch of new Range Rover, full launch of the new Jaguar engine and AWD options, XF Sportbrake, and F-TYPE. JRL will continue its focus on both refreshed and new Jaguar and Land Rover products. JRL will continue to focus on profitable volume growth and improving efficiencies to sustain the growth momentum, Tata Motors said. Given the significant growth in sales and profitability with strong liquidity, JLR's capex and product development spending is expected to increase in FY 2014 in the region of 2.75 billion to develop new products and technologies and for expanding the manufacturing foot print to realize increased market opportunities.
Tata Motors reported net loss on standalone basis in Q3 December 2012. The standalone financial operations represent mainly the India operations of Tata Motors. Revenue on standalone basis (net of excise) stood at Rs 10630 crore for the quarter ended 31 December 2012, which was lower than Rs 13338 crore for the corresponding quarter of the previous year. The operating margin was 2.2% for the quarter ended 31 December 2012, sharply lower than 6.7% for the corresponding quarter last year. Tata Motors reported a net loss of Rs 458 crore on standalone basis in Q3 December 2012, as against net profit of Rs 174 crore in Q3 December 2011.
Tata Motors said that the external environment and overall economic activities remain stressed, resulting in the overall demand continuing to remain under pressure, mainly for the medium and heavy commercial vehicles. Sluggish economic activity and weak macro outlook have impacted freight availability, Tata Motors said. The company said that competitive intensity is resulting in higher marketing costs. The company said that demand in the small commercial vehicles (SCV) segment remains strong. Tata Motors said that the company continues to leverage on its strengths in the commercial vehicles business, which include strong understanding of the domestic market, wide and compelling product portfolio, strong brand and customer support, widespread distribution network and economies of scale.
Tata Motors said that several initiatives are under aggressive implementation by the company in the passenger car business to achieve performance improvement. For the overall passenger car industry, raw material and component prices are expected to be under control going ahead, Tata Motors said. For the company, cost and expense optimization focus will continue in the passenger vehicles business, Tata Motors said.
Tata Motors is India's largest automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is the market leader in commercial vehicles in India and among the top three in passenger vehicles. It is also the world's fourth largest truck and bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America.
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