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 04:08 IST India Infoline News Service
CMP Rs279, Target Rs302, Upside 8.3%
Source: Company, India Infoline Research
Cost analysis (Consolidated)
Source: Company, India Infoline Research
JLR results table
- 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 |
