Tata Motors’ consolidated PAT falls 25 percent in Q3

Tata Motors has reported consolidated revenues (net of excise) of Rs 69,973 crore for the quarter ended December 31, 2014, a growth of 9.6 percent over Rs 63,853 crore for the corresponding quarter in 2013, despite continuing weak operating environment in the standalone business which was more than offset by increases in wholesale volumes, richer product mix and market mix at Jaguar Land Rover (JLR).

The consolidated PBT for the quarter stood at Rs 5,732 crore, a de-growth of 6.4 percent over Rs 6,127 crore for the corresponding quarter in 2013. The consolidated PAT (post minority interest and profit / loss in respect of associate companies) for the quarter was Rs 3,581 crore, a fall of 25.5 percent over Rs 4,805 crore for the corresponding quarter in 2013.

The consolidated revenue (net of excise) for the nine months ended December 31, 2014, was Rs 195,220 crore, a growth of 16.5 percent over Rs 167,516 crore over Q3 2013. The consolidated profit before tax for the same period ended December 31, 2014 was Rs 18,932 crore, a growth of 37 percent over Rs 13,816 crore year on year. The consolidated profit after tax (post minority interest and profit / loss in respect of associate companies) for Q3 2014 was Rs 12,270 crore, a growth of 21.8 percent over Rs 10,073 crore for Q3 2013.

For Tata Motors in India, the M&HCV segment, positive economic sentiment, firm freight rates and improved freight availability, lower fuel prices and improved profitability of truck operators led to replacement demand which boosted sales growth in this segment of 42.9 percent Y-o-Y in Q3 FY 2014-15. However, the LCV segment (mainly small CVs) were affected by low transportation tonnage and vehicle over-capacity as well as constrained financing environment. Thus overall CV sales were down 8.5 percent Y-o-Y in Q3 FY 2014-15.

In the passenger vehicles segment, the company said the Zest sedan received an encouraging response from the markaet. This led to the passenger vehicles segment recording a growth of 4.6 percent Y-o-Y with car segment growth of 16.8 percent Y-o-Y in Q3 FY 2014-15. The Zest has sold 16,407 units since its launch till December.

Tata Motors’ sales (including exports) of commercial and passenger vehicles for the quarter ended December 31, 2014, stood at 1,27,484 units, down by 3.5 percent in comparison to 2013. The revenues (net of excise) for Q3 2014 stood at Rs 9,056 crore, as compared to Rs 7,770 crore for the corresponding quarter in 2013. Loss before and after tax for Q3 FY2014 was Rs 2,105 crore and Rs 2,123 crore, respectively, against profit before and after tax of  Rs 621 crore and Rs 1,251 crore, respectively, for the corresponding quarter last year. Loss before tax for the quarter ended December 31, 2014 includes profit of Rs 13 crore on divestment of investment in a foreign subsidiary company to TML Holdings Pte Ltd, Singapore, a wholly owned subsidiary (Rs 1,948 crores for the corresponding quarter last year),  provision of Rs 310 crore to the carrying cost of buildings at Singur due to uncertainty on the timing of the resolution of  the legal case  pending in the Supreme Court  and the unamortised exchange loss of Rs 216 crore due to the prepayment of the existing foreign currency borrowings with new foreign currency borrowings in the quarter.

The revenues (net of excise) for the nine months ended December 31, 2014, stood at Rs 25,510 crore as compared to Rs 25,743 crores in the corresponding period the previous year. Loss before and after tax for nine months ended December 31, 2014 was Rs 2,818 crore and Rs 3,575 crore, respectively, against the PBT and PAT of Rs 391 crore and Rs 1,151 crore, respectively, for the corresponding period last year.

For Jaguar Land Rover, wholesales and retails for the quarter ended December 31, 2014 stood at 122,187 units and 111,525 units respectively. Revenues in this period were £ 5,879 million (Rs 57,866 crore) , up 10.3 percent over £ 5,328 million (Rs 52,443.5 crore) in the corresponding quarter last year. Operating profit (EBITDA) for the quarter ended December 31, 2014, stood at 18.6 percent  of £ 1,096 million, representing a growth of 7.8 percent over £ 1,017 (Rs 10,010.33 crore)  million in the corresponding quarter last year.

Underpinning these results were volume increases, product mix supported by the Range Rover Sport, Range Rover and Jaguar F-Type and a rich market mix, the company said. Profit before tax of £685 million ( Rs 6,742.2 crore) for the quarter ended December 31, 2014 was down 18.6 percent over the corresponding quarter last year (£842 million (Rs 5836.8 crore) in the corresponding quarter last year) due to slowing sales in China and Russia, unfavourable revaluation of foreign currency debt and unrealised hedges and higher depreciation and amortisation.

PAT for the quarter ended December 31, 2014 stood at £593 million or Rs 5,836.8 crore) (£619 million or Rs 6092.8 crore in the corresponding quarter last year).