Tata Motors’ disappointed the market by posting a profit of Rs 2,245 crore for June 2012 lower than expectation of Rs 2,570 crore. The stock, however, after an initial fall has rebounded and closed the day at Rs 239.35, down 0.9%.
While net profit has jumped from Rs 2,000 crore in June 2011 there has been a deterioration in its numbers from March 2012 quarter. These numbers hide the dismal performance of its Indian unit.
Following are the key takeaways from the company’s results:
- Tata Motors posted consolidated sales of Rs 43,323.61 crore in June 2012 as compared to Rs 33,288 crore in June 2011 and Rs 50,907.90 crore in March 2012.
- On a standalone basis Indian unit continued to be impacted by the slowdown, posting a sales of 10,588.41 crore as compared to Rs 11,624.15 crore in June 2011 and Rs 16,390.72 crore in March 2012.
- Net profit on a standalone basis stood at Rs 205.34 crore a sharp drop from Rs 401.26 crore in June 2011 and Rs 565.26 crore in March 2012.
- Standalone numbers would have been lower but for an ‘other income’ component of Rs 447.07 crore in June 2012 as against Rs 177.39 crore in June 2011 and Rs 134.29 crore in March 2012.
- JLR sales in volume terms grew by 34.4% to 83,452 units. Of this, Jaguar sales were 11,774 units while Land Rover clocked 71,678 units.
- JLR has declared it maiden dividend worth 150 million Pound on a profit of 236 million Pound.
- Higher demand from China resulted in Range Rover Evoque growing by 91%. China now accounts for 22.2% of the sales.
- Contribution of domestic business has further gone down and now account for 27.5% of sales in June 2012 as compared to 41% in June 2011 and 35% in March 2012.
- Further, domestic business contributes even lesser at the EBIT (earnings before interest and tax) level, with contribution of 18.5% as against a 30% contribution in June 2011 and 29.5% in March 2012. This indicates deterioration in margins of the domestic business.
- Tata Motors incurred a forex loss of Rs 440 crore for June 2012 quarter.
