Tata Motors Ltd.
) announced a 17% rise in earnings per share to INR7.04 (13 cents)
in its first quarter of fiscal 2013 ended June 30, 2012 compared to
INR6.02 in the corresponding quarter last year. In absolute terms,
profits increased 12% to INR22.45 billion ($411.7 million) compared
with INR19.99 billion in the year-ago quarter.
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Revenues in the quarter grew 30.1% to INR433.2 billion ($7.95
billion). The improvement in revenues was attributable to an
increase in volumes of new products and favorable market mix of
Jaguar Land Rover (JLR).
Revenues from Tata Motors standalone declined 8.9% to INR105.9
billion ($1.94 billion). The decrease in revenues was due to weak
economic condition along with increase in excise duty and poor
availability of freight. Volume sales of Tata Motors including
exports declined 3.6% to 190,483 units in the quarter. Commercial
vehicle sales in domestic market went up 1.3% to 114,710 units.
However, passenger vehicle sales including Fiat, Jaguar and Land
Rover vehicles dropped 9.9% to 62,619 units.
Price competition in the commercial and passenger vehicle business
had adverse effects on volumes sales and operating margin. Thus
operating margin slashed to 7.3% in the quarter compared to 8.8% in
the corresponding period last year. Operating Profit (EBITDA) was
INR7.74 billion ($141.95 million) compared to INR1.02 billion in
the corresponding quarter of last year.
Total Jaguar Land Rover sales for the quarter went up 34.4% to
83,452 units, including 11,774 units for Jaguar and 71,678 units
for Land Rover. The year-over-year improvement in sales volume was
attributable to higher sales of the new Range Rover Evoque and a
91% growth in demand in China.
In Europe, revenues from Jaguar Land Rover went up 34.6% to £3.64
million ($5.8 billion). Operating profit (EBITDA) was £527 million
($834.3 million) or 14.5% of sales, up 45.6% from £362 million or
13.4% in the corresponding quarter last year. The increase in
revenues and operating income was due to higher demand for new
products, improved market mix and favorable exchange rate
Revenues from Tata Motors Finance Ltd. were INR6.2 billion ($11.43
million). Meanwhile, revenues from Tata Daewoo Commercial Vehicles
Co. Ltd. were KRW217 billion ($188.79 million) during the quarter.
Tata Motors is a global automaker that is placed among the top
automotive companies in India. The major competitors of the company
Ford Motor Co.
General Motors Company
The company produces passenger cars, trucks, vans and coaches. It
is spread over several countries in Europe, Africa, the Middle
East, South Asia, South East Asia and South America. Currently, it
retains a Zacks #5 Rank, which translates into a short-term (1 to 3
months) Strong Sell rating.