Tata Motors (Q1 FY13)

India Infoline News Service | Mumbai |

Operating margin for the quarter was at 14.5% in comparison to 13.4% in Q1 FY12 and 14.6% in Q4 FY12, slightly better than our and street estimates.

CMP Rs239, Target Rs250, Upside 4.4%

  • Consolidated net sales jumped 30% yoy aided by robust 35.5% growth in JLR
  • JLR OPM was at 14.5% better than ours and street estimates, a rise of 109bps yoy
  • OPM for standalone business at 6.6% was lower than our expectation mainly on adverse product mix
  • Volumes at JLR to weaken in Q2 FY13 as production of old Range Rover is discontinued
  • Margins at JLR to be lower in FY13 vis-à-vis FY12
  • Consolidated earnings to remain flat over the next couple of years
  • Downgrade to Market Performer on absence of near term triggers to earnings. Cut our 9-month price target to Rs250
Result table (Consolidated)
(Rs m) Q1 FY13 Q1 FY12 % yoy Q4 FY12 % qoq
Net sales 433,236 332,888 30.1 509,079 (14.9)
Material costs (248,355) (193,418) 28.4 (304,895) (18.5)
Purchases (29,139) (25,934) 12.4 (29,097) 0.1
Personnel costs (37,897) (25,925) 46.2 (36,332) 4.3
Other overheads (55,499) (42,994) 29.1 (66,965) (17.1)
Operating profit 62,346 44,617 39.7 71,791 (13.2)
OPM (%) 14.4 13.4 99 bps 14.1 29 bps
Depreciation (15,659) (11,432) 37.0 (15,354) 2.0
Product development (4,797) (2,259) 112.4 (4,346) 10.4
Interest (8,044) (8,556) (6.0) (7,721) 4.2
Other income 2,386 1,658 43.9 1,586 50.5
PBT 36,232 24,028 50.8 45,956 (21.2)
Tax (8,688) (3,519) 146.9 18,261 (147.6)
Effective tax rate (%) 24.0 14.6   (39.7)  
Minority int (690) 57 (1,305.6) (164) 320.5
Adjusted PAT 26,854 20,566 30.6 64,052 (58.1)
Adj. PAT margin (%) 6.2 6.2 2 bps 12.6 (638) bps
Extra ordinary items (4,405) (570) 673.0 (1,713) 157.2
Reported PAT 22,449 19,996 12.3 62,340 (64.0)
Ann. EPS (Rs) 28.2 25.2 11.7 78.6 (64.2)
 Source: Company, India Infoline Research

Cost analysis (Consolidated)
As a % of net sales Q1 FY13 Q1 FY12 bps yoy Q4 FY12 bps qoq
Material costs 57.3 58.1 (78) 59.9 (257)
Purchases 6.7 7.8 (106) 5.7 101
Personnel Costs 8.7 7.8 96 7.1 161
Other overheads 12.8 12.9 (11) 13.2 (34)
Total costs 85.6 86.6 (99) 85.9 (29)
Source: Company, India Infoline Research

JLR results table
(in £ mn) Q1 FY13 Q1 FY12 yoy (%) Q4 FY12 qoq (%)
Jaguar wholesale volumes   13,638   12,557   8.6   15,431   (11.6)
Land Rover wholesale volumes   72,120   50,719   42.2   83,177   (13.3)
Total wholesale volumes    85,758   63,276   35.5   98,608   (13.0)
Realization (£/vehicle)   42,422   42,718   (0.7)   42,025   0.9
Net Sales   3,638   2,70
BSE 407.20 2.05 (0.51%)
NSE 407.45 2.35 (0.58%)

***Note: This is a NSE Chart

 

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