Tata Motors Q4 net falls over 56% to Rs1,717 crore

Tata Motors has reported a 56.17-per cent decline in its consolidated net (after tax) profit at Rs1,717 crore for the quarter ended 31 March 2015, against Rs3,918 crore during the corresponding quarter of the previous financial year.

Consolidated revenues (net of excise) for the quarter ended 31 March 2015 stood at Rs67,576 crore, a growth of 3.5 per cent over Rs65,317 crore during the corresponding quarter of the previous year. The company attributed the increase in revenue to an increase in wholesale volumes and better product mix both in the standalone business and Jaguar Land Rover (JLR).

Consolidated profit before tax for the quarter also stood lower at Rs2,771 crore, against Rs5,053 crore for the corresponding quarter of the previous fiscal. The decline, according to the company, was due to higher depreciation and amortisation and adverse mark-to-market of un-matured  hedges not eligible for hedge accounting.

For the financial year 2014-15 ended 31 March 2015, Tata Motors reported consolidated net profit (post minority interest and profit / loss in respect of associate companies) of Rs13,986 crore, against Rs13,991 crore for the corresponding period of the previous year.

Consolidated revenue (net of excise) for the year ended 31 March 2015 was up 12.9 per cent at Rs2,62,796 crore compared to Rs2,32,834 crore for the corresponding period last fiscal.

Consolidated profit before tax for the year stood at Rs21,703 crore, against Rs18,869 crore for the corresponding period last year.

Tata Motors saw some buoyancy in the MHICV segment, due mainly to improved freight availability and improved profitability of truck operators, fleet replacement demand mainly in the high tonnage segment.

The company sales in this segment grew 26.4 per cent in Q4 FY15. However, LCV segments (mainly the SCV) continued to remain weak. As a result, the overall CV sales were almost flat in Q4 FY 2014-15.

In passenger vehicles, Zest and the newly launched Bolt, continued to receive encouraging response from the customers. This led to the passenger vehicles segment of the company showing a growth of 19.1 per cent Y-o-Y in Q4 FY 2014-15 with car segment growing at 33.0 per cent.

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

Jaguar Land Rover wholesales and retails for the year ended 31 March 2015 were 470,523 units and 462,209 units, respectively (129,205 units and 124,307 units respectively for Q4 FY 15).

Revenues for the quarter ended 31 March 2015 rose 8.9 per cent to £5,826 million from £5,349 million in the corresponding quarter last year.

Operating profit (EBITDA) for the quarter ended 31 March 2015 stood at £1,016 million (with operating margin of 17.4 per cent), representing a growth of 10.4 per cent over £920 million in the corresponding quarter last year.

Profit before tax of £396 million for the quarter ended 31 March 2015 was down 31.3 per cent over the corresponding quarter last year (£576 million in the corresponding quarter last year) due to higher depreciation and amortization and unfavourable revaluation of foreign currency debt and unrealised hedges.

Revenues for the year ended 31 March 2015 of £21,866 million were up 12.8 per cent over £19,386 million in the corresponding period last year.

Continued strong revenue and operating performance were driven by increased wholesale volume, solid product mix supported by the ongoing success of Range Rover Sport, Range Rover and Jaguar F-Type and strong market mix with sales growth in the UK, US, China, Europe and Asia Pacific partially offset by unfavourable operational foreign exchange net of realised hedges.

Profit before tax for the year ended 31 March 2015 grew 4.5 per cent over the corresponding period last year to £2,614 million (£2,501 million in the corresponding period last year).

Profit after tax for the year ended 31 March 2015 grew 8.5 per cent over the corresponding period last year to £2,038 million (£1,879 million in the corresponding period last year).

Tata Daewoo Commercial Vehicles Co Ltd reported net revenues of KRW 301 billion and recorded a net profit of KRW 14 billion for the quarter ended 31 March2015.

Consolidated net revenue and net profit at Tata Daewoo for the year ended 31 March 2015 stood at KRW 988 billion and KRW 54 billion, respectively. Net profit for the year ended 31 March 2015 includes reversal of provision under Korean GAAP due to favourable court judgment.

Tata Motors Finance Ltd, the company's captive financing subsidiary, on a consolidated basis, registered net revenue of Rs670 crore and reported a after-tax loss of Rs397 crore for the quarter ended 31 March 2015. Net revenue and loss after tax, on a consolidated basis, for the year ended 31 March 2015 stood at Rs2,743 crore and Rs611 crore, respectively.

Considering the continued weak operating environment in the standalone business, and in view of the losses for the year no dividend is permitted to be paid to the members for FY 2014-15, Tata Motors said.