Tata Motors reported a consolidated profit of Rs.4,805 crore for the third quarter ended December 31, 2013, against Rs.1,628 crore in the year ago period, a smart growth of 195 per cent with significant benefits once again accruing from the performance of luxury car subsidiary Jaguar Land Rover (JLR). The company reported a growth of 38.6 per cent in consolidated revenues at Rs.63,877 crore against Rs.46,090 crore.
The consolidated profit from operations almost doubled to Rs.7,096 crore from Rs.3,587 crore.
Indian operations
On a standalone basis, the net profit was Rs.1,251.4 crore (loss of Rs.458.5 crore in Q3 of FY13). But this includes profit on sale of investment in a subsidiary amounting to Rs.1,948 crore without which it would have reported a loss. The company is in the process of divesting investment in foreign subsidiary companies to TML Holdings Pvt. Ltd. of Singapore, a wholly-owned subsidiary.
C. Ramakrishnan, CFO, Tata Motors, said the restructuring involved four companies — Tata Daewoo Korea, and companies in Thailand, Indonesia and South Africa. Revenue was down at Rs.7,770 crore against Rs.10,630 crore. Sales, including exports of commercial (CV) and passenger vehicles, declined by 35.7 per cent to 132,087 units. Passenger car and UV sales fell 37 per cent to 34,829 units.
“Macro factors affected the demand for CVs and high marketing spends affected profitability,” he said, adding, “We foresee depressed conditions for the next few quarters”.
Ravi Pisharody, Executive Director, CV, Tata Motors, said the company had exported CVs to Indonesia and Australia in Q3. “In the next six months, we will start exports to Malaysia, Vietnam and the Philippines. There will be good traction for exports in the next few quarters”.
JLR reported a net profit of 619 million pounds on 40 per cent higher revenues of 5.33 billion pounds. Operating profit rose 79 per cent to 955 million pounds.
Operating margin rose 390 basis points to 17.9 per cent. JLR incurred a capital expenditure of 788 million pounds during the quarter. Ralf Speth, CEO, JLR, said the company was increasing the capex plans for FY 15 to 3.5-3.75 billion pounds, “reflecting the strong momentum and the opportunities for growth that we foresee”.
