Tata Motors : Q1FY15 Beats Street Estimates
DSIJ Intelligence / 12 Aug 2014
Tata Motors June 2014 Quarter Net Profit Beats Street Estimates As JLR Sales Pushes Margins.
Tata Motors announced its June 2014 quarter results and the results have managed to beat the street estimates by significant margins. To put the figures in perspective, the consolidated net profit was substantially up by 206% to Rs 5413.40 crore in June’14 quarter as compared to Rs 1768.04 in June’13 quarter (YoY). This can be attributed to increase in net sales which rose to Rs 64682.83 crore in June’14 quarter as against Rs 46796.47 crore. The EBITDA margin increase to 18.2% in June’14 quarter as against 14.5% in June’13 quarter.
The total expenses of the company were up 31.7% YoY mainly due to increase in cost of raw material consumed and employee benefit expenses which were up by 24.59% and 30% respectively.
Coming to the segment wise performance the Jaguar and Land Rover (JLR) sales figures had a lion’s share. The revenue’s from JLR were up by 54% to Rs 5442.97 crore in June’14 quarter as against Rs 35364.97 crore in June’13 quarter. Whereas, the revenues from Tata and other brand vehicles and financing stood at Rs 9898.38 in June’14 quarter as compared to Rs 11163.9 in June’13 quarter declining 11% (YoY).
The JLR segment registered an EBITDA margin of the JLR segment increased to 20.3% in June’13 quarter as compared to 15.8% in June’13 quarter. The company reported a forex loss of Rs 94.02 crore in June’14 quarter as compared to a gain of Rs 178.64 crore.
Tata Motors’ sales figures for commercial and passenger vehicles in July’14 stood at 39623 units as against 51549 units, a decline of 23% (YoY). Cumulative sales of the company for the fiscal year (April- March) declined by 27% to 149,597 units from 204,744. Exports registered a growth of 2% in July’14 standing at 4367 units exported as compared to 4277 units exported in July’13.
The company expects the second quarter to be more favorable because of positive investment and business sentiment. Phase 2 of Jawaharlal Nehru National Urban Rura Mission (JNNRUM) is expected to drive bus volumes. Company has entered Philippines auto market with Malaysian and Vietnamese market to follow.
The company has launched new vehicles Zest, Nano Twist, Vista VX Tech and Tata ARIA. Moreover, it is also preparing to launch new Discovery sport, Jaguar XE and a new China JV manufacturing plant. We recommend the readers to buy the scrip at current levels.
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