Tata Motors (Q1 FY14)
Consolidated net sales grew by 8% yoy as 14% yoy fall in standalone sales was more than offset by 12% yoy jump in JLR sales
Aug 08, 2013 09:08 IST India Infoline News Service
- Consolidated net sales grew by 8% yoy as 14% yoy fall in standalone sales was more than offset by 12% yoy jump in JLR sales
- Growth in JLR revenues was driven by 8.6% yoy rise in volumes and 3.7% yoy increase in realizations
- JLR OPM was at 16.5% much ahead of ours and street estimates, a surge of 199bps yoy; the gains were driven by favorable currency movements and better product mix
- OPM for standalone business at 1.2% was lower than our expectation of 1.9% mainly on back of operating de-leverage
- JLR paid out a dividend of £150mn to Tata Motors
- Maintain Market Performer rating with a revised 9-month price target of Rs302
(Rs m) | Q1 FY14 | Q1 FY13 | % yoy | Q4 FY13 | % qoq |
Net sales | 467,847 | 433,236 | 8.0 | 560,016 | (16.5) |
Material costs | (267,463) | (248,355) | 7.7 | (320,902) | (16.7) |
Purchases | (21,392) | (29,139) | (26.6) | (30,889) | (30.7) |
Personnel costs | (44,612) | (37,897) | 17.7 | (44,224) | 0.9 |
Other overheads | (66,846) | (55,499) | 20.4 | (80,707) | (17.2) |
Operating profit | 67,533 | 62,346 | 8.3 | 83,294 | (18.9) |
OPM (%) | 14.4 | 14.4 | 4 bps | 14.9 | (44) bps |
Depreciation | (23,477) | (15,659) | 49.9 | (23,391) | 0.4 |
Product development | (5,341) | (4,797) | 11.3 | (5,279) | 1.2 |
Interest | (9,482) | (8,044) | 17.9 | (9,670) | (1.9) |
Other income | 1,823 | 2,386 | (23.6) | 1,775 | 2.7 |
PBT | 31,056 | 36,232 | (14.3) | 46,729 | (33.5) |
Tax | (11,642) | (8,688) | 34.0 | (8,827) | 31.9 |
Effective tax rate (%) | 37.5 | 24.0 | 18.9 | ||
Other provisions / minority etc | (367) | (690) | (46.7) | 1,338 | (127.5) |
Adjusted PAT | 19,047 | 26,854 | (29.1) | 39,240 | (51.5) |
Adj. PAT margin (%) | 4.1 | 6.2 | (213) bps | 7.0 | (294) bps |
Extra ordinary items | (1,786) | (4,405) | (59.4) | 215 | (932.8) |
Reported PAT | 17,261 | 22,449 | (23.1) | 39,455 | (56.3) |
Ann. EPS (Rs) | 21.8 | 28.2 | (22.7) | 49.5 | (56.0) |
Cost analysis (Consolidated)
As a % of net sales | Q1 FY14 | Q1 FY13 | bps yoy | Q4 FY13 | bps qoq |
Material costs | 57.2 | 57.3 | (16) | 57.3 | (13) |
Purchases | 4.6 | 6.7 | (215) | 5.5 | (94) |
Personnel Costs | 9.5 | 8.7 | 79 | 7.9 | 164 |
Other overheads | 14.3 | 12.8 | 148 | 14.4 | (12) |
Total costs | 85.6 | 85.6 | (4) | 85.1 | 44 |
JLR results table
(in £ mn) | Q1 FY14 | Q1 FY13 | yoy (%) | Q4 FY13 | qoq (%) |
Jaguar wholesale volumes | 18,577 | 11,774 | 57.8 | 21,163 | (12.2) |
Land Rover wholesale volumes | 72,043 | 71,678 | 0.5 | 95,177 | (24.3) |
Total wholesale volumes | 90,620 | 83,452 | 8.6 | 116,340 | (22.1) |
Realization (£/vehicle) | 45,211 | 43,594 | 3.7 | 43,433 | 4.1 |
Net Sales | 4,097 | 3,638 | 12.6 | 5,053 | (18.9) |
Expenses | (3,422) | (3,111) | 10.0 | (4,197) | (18.5) |
Operating profit | 675 | 527 | 28.1 | 856 | (21.1) |
OPM (%) | 16.5 | 14.5 | 199bps | 16.9 | (46)bps |
Depreciation | (202) | (121) | 66.9 | (213) | (5.2) |
Forex gain/(loss) | (30) | (67) | (55.2) | (118) | (74.6) |
EBIT | 443 | 339 | 30.7 |