Tata Motors consolidated Q1 net rises 42% to Rs3,200 cr

09 Aug 2017

Tata Motors has reported consolidated net (after-tax) profit of Rs3,200 crore for the fiscal first quarter ended 30 June 2017, against a consolidated net profit of Rs2,260 crore for the corresponding quarter of the previous year, a 41.59 per cent increase year-on-year.

For the quarter ended 30 June 2017, Tata Motors reported consolidated revenues (net of excise) of Rs58,651 crore, against Rs65,115 crore for the corresponding quarter last year. Consolidated revenues for the quarter are lower by Rs7,761 crore due to the impact of conversion from UK pound to Indian rupee, the company said.

Consolidated profit before tax for the quarter was Rs.3,737 crore, against Rs2,551 crore for the corresponding quarter of fiscal 2016-17. Tata Motors said its consolidated profit before tax for the quarter included one-time gain of Rs3,609 crore (£437million) relating to the changes made to the Jaguar Land Rover pension plans.

Tata Motors said the operating performance broadly reflected lower wholesale volumes in Jaguar Land Rover business except in the China JV, and continuation of higher competitive incentive levels and launch and growth costs seen in FY17.

In standalone business, Tata motors reported significant de-growth in the M&HCV segment, flat LCV segment and moderate growth in passenger vehicle segment.

Tata Motors reported a standalone net loss of Rs467 crore for the quarter ended 30 June 2017 weighed down by a 11.8 per cent decline in sales (including exports) of commercial and passenger vehicles.

''Sales (including exports) of commercial and passenger vehicles for the quarter ended 30 June 2017, stood at 111,860 units, a de-growth of 11.8 per cent, compared to the corresponding quarter last year, with M&HCV de-growth of 34.8 per cent Y-o-Y , LCV growth of 0.2 percent Y-o-Y and passenger vehicles segment growth of 4.7 per cent Y-o-Y.

Standalone revenues (net of excise), including joint operations, for the quarter ended 30 June 2017 stood at Rs9,207 crore, compared to Rs10,393 crore for the corresponding quarter last year.

Standalone operating profit (EBITDA), including joint operations, for the quarter stood at Rs3 crore.

Loss before and after tax for the quarter ended 30 June 2017 was Rs467 crore, against profit before and after tax of Rs38 crore and Rs26 crore, respectively, for the corresponding quarter last year.

In the commercial vehicles business, the company said it has gained month-on-month improvement in sales and market share. The company is confident of further building on this trend with increased focus on stakeholders' engagement and on the ground marketing activities.

In the passenger vehicles business, the company's new cars- Tiago, Hexa, Tigor- continue to show strong sales. The company plans to launch its new compact SUV Nexon in September.

''While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our commercial and passenger vehicle businesses. Our focus on top line, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months,'' Guenter Butschek, MD & CEO of Tata Motors, said.

Jaguar land Rover
Retail sales of Jaguar Land Rover for the quarter reached 137,463 vehicles, up 3.5 per cent on the previous year, led by the 2017 World Car of the Year, World Car Design of the Year and Women's Car of the Year award- winning Jaguar F-PACE (up 86 per cent year on year), and a sequence of successful market launches.

Continuing strong demand was seen for well-established models such as the flagship Range Rover (up 14 per cent) and Jaguar XF (up 22 per cent), reflecting the successful launch of the long wheelbase model in China, the company said.

Sales were up year-on-year in China (30 per cent) and North America (16 per cent), while remaining stable in Europe (no change) and down in the UK (14 per cent) due to the time impact of vehicle excise duty introduced in April 2017.

Revenue for the quarter was £5.6 billion, up £244 million. Profit before tax was £595 million, up from £399 million in Q1 2016, including a £437 million one-off credit relating to recent changes designed to improve the sustainability of the Company's defined benefit pension plans. This was offset by the expected seasonality of sales in Q1 following a strong Q4 of 2016/17, plus the continuation of launch and growth costs.

Ralf Speth, Jaguar Land Rover Chief Executive Officer, said: "The foundation of our journey of sustainable, profitable growth continues to be our investment in products, plants and people as we become a technology-driven company. We continue to deliver rising volumes and revenues across the business, reflecting strong demand for new models such as the Range Rover Velar and established global award winners such as Jaguar F-PACE.''

Tata Daewoo
Tata Daewoo Commercial Vehicles Co Ltd reported a net profit of KRW 18 billion (approx. Rs103 crore) and net revenues of KRW 253 billion (approx Rs1,443 crore) in the quarter ended 30 June 2017.