Tata Motors Q4FY19 Results: Auto giant bags consolidated net profit of Rs 1,117 crore, shares jump 8%

Looks like passenger car maker Tata Motors did not fail to surprise their investors. On Monday's trading session, the share price of Tata Motors jumped by over 8%, after clocking an intraday high of Rs 191.95 per piece on Sensex. Even though, the automaker logged losses in their consolidated net profit on a yearly basis. The losses were still minimised at higher amount compared to what the company booked in Q3FY19 due to matters getting intensified in luxury car brand Jaguar Land Rover (JLR). Tata Motors has turned losses into profit during March 2019 (Q4FY19) quarter, by bagging a consolidated net profit of Rs 1,117.48 crores in Q4FY19, against the massive loss of Rs 26,992.54 crore. However, Q4FY19 profit was nearly halved by 47% from Rs 2,125.24 crore posted a year ago same period. The Q4FY19 PAT was better than expected compared to estimate of Rs 570 crore made by Bloomberg poll of analysts. 

Consolidated revenue meanwhile jumped to Rs 86,422.02 crore in Q4FY19 compared to Rs 76,915.94 crore in Q3FY19, however, down by 3.9% from Rs 89,928.97 crore in Q4FY18. 

On the other hand, operating income (EBITDA) decreased by 6% to Rs 8,019.5 crore, whereas margins came in at 9.3%.

Talking about the result, N Chandrasekaran, Chairman commented saying, ""Our domestic business delivered a resilient performance in the face of challenging market conditions. We have continued to step up our pace of innovation, improved our market shares as well as our profitability. The 'Turnaround 2.0' strategy is delivering well, and I am confident that the business is getting the building blocks in place for long term success."

Guenter Butschek, CEO and MD, Tata Motors, said "Q4FY19 has been extremely tough with market sentiments remaining muted, impacting demand across segments. The industry outlook is not going to be anything different in the short term due to multiple uncertainties. To mitigate this impact, we have strengthened our actions under the ongoing turnaround. With intense sales activation, new product launches, continued thrust on cost reduction, we have been able to improve our business performance across the board and post strong financial results for the fiscal while improving our market shares. PV has been able to close FY19 with EBIDTA breakeven."

Standalone key highlights from the result were:

• Unveiled next generation premium urban car - AL TROZ, launched Tata Harrier #BornofPedigree and Tata Nexon achieved '5 star' Global NCAP safety rating
• Revenue 69.2K Cr (+20.3%), YTD market shares up (as compared to FY 18) in PV (+60 bps) and in 3 out of 4 segments in CV ( MHCV trucks+70 ps; ILCV trucks +50bps; SCV & Pick ups+70 bps)
• Positive FCF of 1.5K Cr for FY 19; Second successive year of positive FCF
• PAT at 2.0K Cr
• EBITDA at 5.7K Cr (8.2%), EBIT at 3.8% (+330 bps),
• CV EBITDA at 11.0% for FY 19 (stable & industry leading); PV business reached EBITDA breakeven at 0.1%
• Turnaround 2.0 to continue with sharp focus on "Win Decisively in CV", "Win Sustainably" in PV, "Win Proactively in EV" & Embed Turnaround culture in organisation

In FY19, Tata Motors wholesale s (including exports) increased 15.0% to 732,428 units. In the domestic market, M&HCV trucks grew +12%, ILCV trucks grew +23%, SCV & Pick Ups grew +24% and CV Passenger grew by 4%. Domestic PV volumes were up 14% with new products driving growth.

Commercial Vehicles (CV) and Passenger Vehicles (PV) continue to deliver strong growths in the year with strong execution and continued product innovation. CV Wholesale (Dom) was up 17.2% while Retail (Dom) was 22.6%; PV Wholesale (Dom) was up 13.9% while Retail (Dom) was up 4.4% 

Meanwhile, revenue for the year increased 20.3% to Rs 69,203 crore, whereas  Profit after tax for the year was at Rs 2,021 crore. 

Going forward, Butschek said, " Our EV business has started making early inroads into the market and is set to grow. With our updated vision of becoming the most aspirational brand, consistently winning in CV, PV and EV, we remain optimistic for fiscal year 2020."

Apart from Q4FY19 results, many other factors also supported the jump in Tata Motors shares. Finally, the share  finished at Rs 190 per piece up by Rs 13.30 or 7.53% on Sensex.