Tata Motors Q1 net slumps nearly 49% to Rs2,765 crore

Tata Motors has reported a 48.7-per cent decline in its consolidated net profit for the quarter ended June 2015 at Rs2,769 crore compared to Rs5,398 crore for the corresponding quarter of the previous year.

Consolidated profit before tax stood at Rs4,359 crore, compared to Rs7,528 crore in the corresponding quarter of the previous year.

Consolidated revenues (net of excise) for the quarter stood at Rs61,020 crore against Rs64,683 crore for the corresponding quarter of the previous year, due mainly to lower sales and weaker geographic mix at Jaguar Land Rover (JLR).

This, however, was partially offset by strong revenue growth in standalone business on the back of continued M&HCV growth, Tata Motors stated in a release.

Fleet replacement demand, mainly in the high tonnage segment, continued to support the company stand-alone sales growth of 20.7 per cent in the domestic MHICV segment in the quarter.

However, the domestic LCV segments (mainly the SCV) continued to remain weak, witnessing a de-growth of 19.0 per cent year-on-year, which the company attributed to the tough financing environment and lack of last mile load availability.

Exports of the commercial vehicles saw strong growth of 38 per cent in the quarter, which helped overall CV sales to remain almost flat in the quarter.

In the passenger vehicles segment, Zest, Bolt and newly launched GenX Nano, supported the sales growth in the quarter. The domestic passenger vehicles segment of the company grew 27.4 per cent year-on-year in the quarter with car segment growth of 42.2 per cent in the quarter.

Tata Motors expects to continue its volume growth with full year of Zest, Bolt, new GenX Nano and other new and exciting products that will be launched in the coming time period under the company's Horizonext strategy.

Sales (including exports) of commercial and passenger vehicles for the quarter, stood at 1,17,439 units, a growth of 6.2 per cent compared to the corresponding quarter of the previous year. Revenues (net of excise) for the quarter stood at Rs9,297 crore, compared to Rs7,705 crore for the corresponding quarter of the previous year.

Operating profit (EBITDA) for the quarter stood at Rs440 crore (4.7 per cent). Profit before and after tax for the quarter ended 30 June 2015 was Rs269 crore and Rs258 crore, respectively, against the profit before and after tax of Rs394 crore, for the corresponding quarter last year.

Profit before tax for the quarter ended 30 June 2015, includes other income (profit on sale of investments in subsidiary companies and dividends from subsidiary companies) of Rs805 crore (Rs1,549 crore for the corresponding quarter last year), Tata Motors said.

Profit before and after tax at Jaguar Land Rover stood at £638 million and £492 million, respectively (GBP £924 million and £693 million, respectively in the corresponding quarter last year).

Jaguar Land Rover wholesales were 110,648 units and retails (including from China JV) for the quarter were 114,905 units.

Revenues for the quarter stood at £5,002 million against £5,353 million for the corresponding quarter last year.

Operating profit (EBITDA) for the quarter stood at GBP 821 million (16.4 per cent), against GBP 1,087 million for the corresponding quarter last year.

Financial performance for the quarter was lower compared to the strong corresponding quarter last year due to softer sales in China, which was partially offset by strong performance in the UK, Europe and North America.

Land Rover maintained healthy sales in the quarter with Range Rover, Range Rover Sport Discovery and Defender all up compared to the corresponding quarter last year. Furthermore, the Discovery Sport performed well, already outselling the Freelander, which it replaced.

Evoque sales were lower due to the ramp up of localised production in China and softer market conditions there.

Jaguar sales volumes were down as the sales of XF and XJ fell ahead of the all new lightweight XF and the refreshed XJ 16MY, on sale in autumn this year, partially offset by the successful introduction of the new Jaguar XE.

Tata Daewoo Commercial Vehicles Co Ltd recorded a net profit of Korean won (KRW) 12 billion and net revenues of KRW 193 billion for the quarter ended 30 June 2015, compared to KRW 4 billion and KRW 222 billion, respectively, recorded in the corresponding quarter last year.

Tata Motors Finance Ltd, the company's captive financing subsidiary,  recorded consolidated net revenue from operations of Rs890 crore and a net profit of Rs91 crore for the quarter ended 30 June 2015.