Tata Motors (Q4 FY12)

India Infoline News Service | Mumbai |

Tata Motors reported a revenue growth of 14.4% yoy to Rs164bn primarily driven 16.9% yoy surge in volumes, partially offset by 2.2% decline in realizations.

CMP Rs276, Target Rs309, Upside 11.9% 
  • Consolidated net sales jumped 43% yoy aided by robust 51.5% growth in JLR

  • JLR OPM was at 14.6% much lower than ours and street estimates, a fall of 546bps sequentially

  • OPM for standalone business at 9.1% was higher than our expectation mainly on account of benefits of operating leverage

  • Margins to remain at current levels for domestic business, while JLR margins would be dependent on currency movements

  • Net automotive debt/equity at consolidated levels is currently at 0.25x

  • Revise our 9-month price target to Rs309 and recommend BUY

Result table (Consolidated)
(Rs m) Q4 FY12 Q4 FY11 % yoy Q3 FY12 % qoq
Net sales 509,079 356,105 43.0 452,603 12.5
Material costs (304,895) (202,175) 50.8 (270,956) 12.5
Purchases (29,097) (30,517) (4.7) (28,988) 0.4
Personnel costs (36,332) (24,930) 45.7 (32,072) 13.3
Other overheads (66,965) (50,278) 33.2 (48,360) 38.5
Operating profit 71,791 48,205 48.9 72,227 (0.6)
OPM (%) 14.1 13.5 57 bps 16.0 (186) bps
Depreciation (15,354) (13,104) 17.2 (16,159) (5.0)
Product development (4,346) (3,486) 24.7 (3,957) 9.8
Interest (7,721) (4,532) 70.4 (5,769) 33.8
Other income 1,586 256 519.0 240 559.9
PBT 45,956 27,339 68.1 46,581 (1.3)
Tax 18,261 (2,885) (733.0) (10,711) (270.5)
Effective tax rate (%) (39.7) 10.6   23.0  
Minority int (164) 146 (212.3) (172) (4.4)
Adjusted PAT 64,052 24,601 160.4 35,699 79.4
Adj. PAT margin (%) 12.6 6.9 567 bps 7.9 469 bps
Extra ordinary items (1,713) 1,774 (196.5) (1,643) 4.2
Reported PAT 62,340 26,375 136.4 34,056 83.1
Ann. EPS (Rs) 403.6 155.4 159.7 225.0 79.4
 Source: Company, India Infoline Research

Cost analysis (Consolidated)
As a % of net sales Q4 FY12 Q4 FY11 bps yoy Q3 FY12 bps qoq
Material costs 59.9 56.8 312 59.9 3
Purchases 5.7 8.6 (285) 6.4 (69)
Personnel Costs 7.1 7.0 14 7.1 5
Other overheads 13.2 14.1 (96) 10.7 247
Total costs 85.9 86.5 (57) 84.0 186
Source: Company, India Infoline Research

Results table (Standalone)
(Rs m) Q4 FY12 Q4 FY11 % yoy Q3 FY12 % qoq
Sales 286,019 244,595 16.9 231,328 23.6
Realisation (Rs/unit) 573,064 585,683 (2.2) 576,580 (0.6)
Net sales 163,907 143,255 14.4 133,379 22.9
Material costs (100,320) (82,761) 21.2 (83,222)
BSE 401.40 [0.45] ([0.11]%)
NSE 401.00 [0.95] ([0.24]%)

***Note: This is a NSE Chart

 

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