A weak operating environment saw Tata Motors’ fourth quarter consolidated net profit drop 37 per cent to Rs.3,945 crore while consolidated revenues rose 10 per cent to Rs.56,002 crore. The operating margin was 14.9 per cent (14.1 per cent).
For the whole of 2012-13, consolidated profit was down by 26.8 per cent at Rs.9,893 crore (Rs.13,517 crore) on 14 per cent higher revenue of Rs.188,818 crore. The operating margin remained unchanged at 14.1 per cent.
The board recommended a dividend of Rs.2 per share.
“The business environment at the macro level is very challenging and stressed and will impact demand for products in medium and heavy commercial vehicles (M&HCVs) while light commercial vehicles (LCVs) continue to do well,” C. V. Ramakrishnan, CFO, told a press conference.
The standalone operations resulted in a loss of Rs.312.15 crore for the fourth quarter against a profit of Rs.565.26 crore in the year-ago period. Revenues declined a third to Rs.11,068 crore while operating margin dropped to 3.6 per cent (9.5 per cent). In the whole of 2012-13, the net profit at Rs.302 crore (Rs.1,242 crore) fell steeply while revenues fell 8 per cent to Rs.44,766 crore. The profit before tax of Rs.175 crore included a dividend from Jaguar Land Rover (JLR) amounting to Rs.1,584 crore.
Commercial Vehicle (CV) sales were steady at 536,232 units driven by LCV sales. Passenger car sales fell 10 per cent to 229,325 units.
Karl Slym, Managing Director, said there was unlikely to be any major change. “Fleet operators are at 60-70 per cent utilisation and will buy new CVs only after utilisation picks up. Capital expenditure in 2013-14 will be Rs.3,000 crore, equally distributed between CVs and passenger cars. We will introduce 40-50 products this year across platforms”.
Jaguar Land Rover
JLR reported a lower net profit of 378 million pounds (696 million pounds) for the fourth quarter but revenues grew 22 per cent to 5.053 billion pounds and operating profit was up 41.5 per cent at 856 million pounds. Sales grew 18.7 per cent to a record 116,340 units.
For the whole of 2012-13, JLR reported an 18 per cent drop in net profit at 1,215 million pounds on 17 per cent higher revenues of 15.78 billion pounds.
Operating margin was 15.2 per cent. Retail sales grew 22 per cent with China sales up 48 per cent.
Ralf Speth, CEO, JLR, said, “We will introduce eight new vehicles this year and will spend around 2.75 billion pounds on new product and infrastructure”.