Tata Motors clock 11-fold YoY rise in Q3FY18 consolidated PAT; JLR revenue up 4.3% YoY
Tata Motors posted consolidated net profit of Rs 1,214.60 crore - growing by a massive 988.64% or 10.88-times compared to mere Rs 111.57 crore in the corresponding period of the previous year.
Passenger vehicle maker Tata Motors witnessed nearly eleven-fold jumps on yearly basis in its consolidated net profit during the third quarter ended December 2017 (Q3FY18) period.
Tata Motors posted consolidated net profit of Rs 1,214.60 crore - growing by a massive 988.64% or 10.88-times compared to mere Rs 111.57 crore in the corresponding period of the previous year.
However, Q3FY18 net profit was down by 51.45% from consolidated net profit of Rs 2,501.67 crore in the preceding quarter.
Consolidated net revenue stood at Rs 74,156.07 crore, registering growth by 14.19% from Rs 64,942.78 crore in Q3FY17, and up by 5.70% versus Rs 70,155.96 crore in Q2FY18.
On quarterly basis, the performance of Tata Motor in consolidated bottom-line has been disappointing, as analysts expected it to be around Rs 2,350 crore in Q3FY18, however, top-line was in line with expectations of Rs 73,401 crore in Q3FY18.
For nine months period of FY18 (9MFY18), Tata Motors consolidated PAT more than doubled to Rs 6,916.20 crore - up by 114.78% as against Rs 3,220.13 crore in 9MFY17, whereas consolidated revenue stands at Rs 204,130.25 crore - sequentially higher by 4.28% from Rs 195,745.51 crore in 9MFY17.
On standalone basis, Tata Motors' reported net profit of Rs 183.65 crore in Q3FY18, against net loss of Rs 1,045.94 crore in Q3FY17. While net revenue stood at Rs 16,101.60 crore - increasing by 43.67% on yearly basis.
Excluding JLR, Tata Motors standalone wholesale grew by a whopping 31% yoy to 172,952 units. While standalone EBITDA margin stood at 9% expanding by 750 basis points.
N Chandrasekaran, Chairman of Tata Motors, said, "We have delivered a satisfying quarter of profitable growth. Jaguar Land Rover, despite tough market conditions, continued its volume growth trajectory with strong response to its new product range. In a market that is facing significant disruptions, Jaguar Land Rover will invest for growth while continuing its journey of sustainable profitable growth."
According to Tata Motors financial audit, JLR reported net revenue of £6,310 million up by 4.3% year-on-year (YoY).
However, JLR's profit before tax stood at £192 down by 24.7% yoy.
JLR's EBITDA margin came in at 10.9% expanding by 80 basis points over corresponding period a year ago.
With this, retail sales of JLR stood at 154,447 units - increasing by 3.5% yoy, while wholesale rose by 2.2% yoy to 133,739 units.
Sales of JLR was driven by 14.6% increase in China and an 18.2% rise in overseas market.
Key Highlights of JLR are:
- Continued ramp up of the Velar and Discovery drover higher volumes, offset partially by run-out of the 17-model year Range Rover and Range Rover Sport
- China and Overseas market were up while the UK, US and European markets were lower reflecting more challenging conditions with cyclical weakness in the UK and US, increasing diesel uncertainty in the UK and Europe, and Brexit uncertainty in UK
- The new Jaguar E-Pace, long wheelbase XE in China and 18 model year Range Rover and Range Rover Sport (both with new PHEV options) have been launched and will be ramping up in Q4
- E-Pace and E-Pace awarded 5 star Euro NCAP rating
- Participated in UK's first on-road testing of the Autonomous cars
Dr Ralf Speth, Jaguar Land Rover CEO said, "Despite headwinds and uncertainty in some markets, JLR still delivered increased unit sales as we continued the launch schedule for new models including the significantly enhanced Range Rover family and all-new Jaguar E-Pace."
Outlook ahead for JLR is good, as Speth said, "As I look ahead, this is a milestone year for JLR as we prepare to launch our first ever electric car, the Jaguar I-PACE, the Range Rover plug-in Hybrids. We continue to remain focused on delivering sustainable and profitable growth, we expect a stronger all-around performance in the fourth quarter driven by new models, seasonality and improved profitability."
Talking on domestic business, Chandrasekaran, said, "The 'turnaround strategy' is delivering results. Our focus on market share gain coupled with operational improvements is working well, with both commercial and passenger vehicles businesses delivering improved results."
As on December 2017, Tata Motors free cash flow stands negative at Rs 5,159 crore - reflecting higher investment, lower operating profits and adverse working capital in JLR due to new product launches.
Meantime, net debt was at Rs 47,777 crore so far in FY18 - higher compared to net debt of Rs 27,485 crore in March 2017 quarter. Total current liabilities amounted to Rs 125,560 crore this period versus Rs 115,630 crore in March 2017, while total current asset including cash increased by Rs 1,285 crore to Rs 117,405 crore as compared to March 2017.
Chandrasekaran overall said, "We will continue on this journey to drive growths ahead of market, reduce cost base and invest prudently to deliver better products and service for our customers and improved returns for our shareholders."
Share price of Tata Motors closed at Rs 396.05 per piece on BSE, higher by Rs 12 or 3.12%.
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