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INVESTOR RELATIONS
26th May, 2011
FY11 Results Review Press / Analyst Meet
INVESTOR
RELATIONS
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INVESTOR RELATIONS
Statements in this presentation describing the objectives, projections,estimates and expectations of the Company i.e. Tata Motors Ltd and
its direct and indirect subsidiaries and its associates may be forward
looking statements within the meaning of applicable securities laws
and regulations. Actual results could differ materially from thoseexpressed or implied. Important factors that could make a difference
to the Companys operations include, among others, economic
conditions affecting demand / supply and price conditions in the
domestic and overseas markets in which the Company operates,
changes in Government regulations, tax laws and other statutes and
incidental factors
FY 11 represents the period from 1st April 2010 to 31st March 2011
FY 10 represents the period from 1st April 2009 to 31st March 2010
Financials contained in the presentation are in Indian GAAP
INVESTOR
RELATIONS
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Standalone
FinancialHighlights
Subsidiaries
Consolidated financials
Standalone financials
WayForward
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4INVESTOR RELATIONS
Tata Motors Consolidated P&L (Audited)
Rs Crores FY11 FY10 % change
Net Revenue 123,133.3 92,519.3 33.1%
EBITDA 17,780.0 8,614.2 106.4%
EBITDA margin 14.4% 9.3% 510 bps
Other Income 89.6 1,793.1 -95.0%
PBT 10,437.2 3,522.6 196.3%
PAT # 9,273.6 2,571.1 260.7%
Cash Profit# *
13,470.5 6,440.2 109.2%
JLR business contributes to growth in EBITDA margin
# After Minority Interest and share of Profit/(loss) in respect of associate companies
* Cash Profit = EBITDA + Other Income Product Development Expenses Net Interest - Tax Paid
EBITDA excludes Other Income
Tata Motors Group Global sales volume crosses 1 million ;
Turnover crosses Rs 1 lakh crores and PBT crosses Rs 10,000 crores
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5INVESTOR RELATIONS
Tata Motors Consolidated Balance Sheet (Audited)
In Rs crores Mar-11 Mar-10
Sources of funds
Shareholder Funds 19,171.5 8,206.5
Minority Interest 246.6 213.5Foreign Currency Monetary Item
Translation Difference Account - 191.2
Deferred Tax Liability (Net) 2,096.1 1,579.6
Loan Funds 32,791.4 35,108.4
Total Funds Employed 54,305.6 45,299.1
Application of funds
Fixed Assets (Net) 43,493.1 38,506.3
Goodwill (on consolidation) 3,584.8 3,422.9
Investments 2,544.3 2,219.1
Deferred Tax Assets (Net) 632.3 426.0
Net Current Assets 4,051.1 724.8
Total Funds Utilised 54,305.6 45,299.1
Increase in networth of Rs 10,965 crs
during FY11.
EPS (basic) stood at Rs 155.25 for
FY11 as compared to Rs 48.64 for FY10
Net Automotive Debt / Equity stood at
0.68 as on March 31, 2011.
Overall capex spend of ~ Rs 8,521 crs
in FY11. (JLR ~ GBP 775 mio); (TML ~
Rs 2,391 crs)
Financing business continues growth
and profitability with book size of ~ Rs9,878 crs on March 31, 2011
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6INVESTOR RELATIONS
Tata Motors Standalone P&L (Audited)
Rs Crores FY11 FY10 % change
Net Revenue 48,040.5 35,593.1 35.0%
EBITDA 4,771.3 4,178.3 14.2%
EBITDA margin 9.9% 11.7% (180 bps)
Other Income 183.3 1,853.5 -90.1%
PBT 2,196.5 2,829.5 NM
PAT 1,811.8 2,240.1 NM
Cash Profit * 3,199.6 4,264.7 NM
Cost pressures including commodity prices impacted EBITDA margins.
* Cash Profit = EBITDA + Other Income - Product Development Expenses Net Interest - Tax Paid
EBITDA excludes Other Income
Sales volume over 8 lakhs ;
Turnover ~ Rs 48,000 crores and PBT crosses Rs 2,000 crores
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7INVESTOR RELATIONS
Tata Motors Standalone Balance Sheet (Audited)
In Rs crores Mar-11 Mar-10
Sources of funds
Shareholder Funds 20,013.3 14,965.5
Loan Funds 15,898.7 16,594.5
Deferred Tax Liability (Net) 2,023.2 1,508.6
Total Funds Employed 37,935.2 33,068.6
Application of funds
Fixed Assets (Net) 17,475.6 16,436.0
Investments 22,624.2 22,336.9
Foreign Currency Monetary
Item Translation Difference
Account (Net) - 161.7
Net Current Assets (2,164.6) (5,866.0)
Total Assets (net) 37,935.2 33,068.6
EPS (basic) stood at Rs 30.28 for FY11 as
compared Rs 42.37 for FY10.
In Oct 2010, funds of USD 750 mio were raised
via QIP of Ordinary & A Ordinary shares as part
of de-leveraging initiative.
FCCBs of ~ USD 326 mio equivalent were
converted to equity during the year and
2,35,70,426 Shares were allotted against the
conversion.
Net Debt/Equity at 0.67 as on March 31, 2011
The Board of Directors recommended a
Dividend of Rs 20 per Ordinary Shares and Rs20.50 per A Ordinary Shares for FY 2010-11
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8INVESTOR RELATIONS
Standalone
FinancialHighlights
Subsidiaries
WayForward
Commercial Vehicles
Passenger Vehicles
Exports
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9INVESTOR RELATIONS
155,161196,651
218,681
262,177
FY 10 FY 11
MHCV LCV
Continued growth in Commercial Vehicles
Y-o-Y Growth in the CV markets continued through the year
supported by sustained economic growth leading to significant
revival in Exim trade, coupled with infrastructure development,
pick up in mining & construction activities, favorable financing
environment and healthy freight availability.
H1 of FY 11 was characterized with high growth rates due to a
low base effect. H2 FY 11 continued growth path.
Growth in MHCV segment has been accompanied by a
structural alignment and shift in favor of higher tonnage trucks
Tata Motors CV sales grew at ~ 23% in FY 11. Of this -
MHCV grew at ~ 27%; LCV segment grew at ~ 20%
Capacity expansion at Uttaranchal in place towards the end of
the year.
Various new products in FY 11 include new launches from the
Tata Prima Construck range, variants in the MHCV segment
including expansion of tractor trailer range, passenger
applications from the Tata Winger platform.
We took cumulative price increases of 5.3% in FY 11 along with
cost reduction initiatives to counter higher input costs
INVESTOR RELATIONS
Tata Motors FY 11 market share - 61.8%
Note: LCV includes sales of Magic and Winger
Source: SIAM and Company analysis
Domestic CV industry grew ~27% in FY 11
458,828
373,842
23%
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10INVESTOR RELATIONS
33,507 42,277
68,195
96,455
158,093
180,091
FY 10 FY 11
UV Midsize Small Car
Passenger vehicles also grew
Note: Figs includes JLR and Fiat sales
INVESTOR RELATIONS
Passenger vehicles industry continued to grow (~30%) Y-o-Y in FY
11 with better economic outlook, rise in disposable income, several
new offerings, higher discounts to mitigate intensifying competition,
availability of financing alternatives, increased rural penetration.
Tata Passenger vehicles sales volumes grew ~ 27% led by growth
in sales of Nano, Manza, Indigo CS and Safari. In FY 2011, the
company crossed 2 million passenger vehicle sales since inception.
The Mini segment growth was driven by Nano sales which clocked
~70000 units in FY11. The company continues to undertake focused
marketing initiatives specific to Nano. Cumulative sales of Tata Nano
crossed 100,000 mark during FY11.
The industry for the Midsize segment grew by ~ 30% Y-o-Y while
the sales of the Tata passenger cars in the segment grew
substantially by 55% driven by the sales of Manza.
Sales of Utility Vehicles showed a healthy growth of ~ 26% Y-o-Y
with improved sales of Sumo, Safari and the new launches in the
segment like Aria and Venture.
New products launched in FY 11 Indigo CS e-series, Aria, Venture,
Vista 90, Indica eV2, Manza Elan
We took price increases of ~ 4-6% on Tata Passenger cars
260,020
319,712
Source: SIAM and Company analysis
Market Share for Passenger vehicles in
FY11 stood at 13.0%
Growth driven by relatively young
product portfolio
23%
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11INVESTOR RELATIONS
6,231 7,845
27,878
50,244
FY 10 FY 11
Passenger Vehicles Commercial Vehicles
Exports Markets show substantial growth with
improved macro economic indicators
34,109
58,089
70%
Tata export volumes increased substantially
by 70.3% in 2010-11 over last year.
Exports to Bangladesh, Sri Lanka & Bhutan
continued to grow, both, over the previous
quarters as well as on a y-o-y basis.
Poland and MENA countries showed much
better volumes over prior year. However,
certain MENA countries showed subdued
sales in Q4FY11 due to the lingering political
crisis.
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12INVESTOR RELATIONS
Standalone
FinancialHighlights
Subsidiaries
WayForward
Jaguar Land Rover
Tata Motor Finance
Tata Technologies
Tata Daewoo
HVAL / HVTL
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13INVESTOR RELATIONS
Jaguar Land Rover Plc P&L (Audited)
GBP Million FY11 FY10 % change
Net Revenue 9,905.1 6,554.8 51.1%
EBITDA 1,618.6 392.7 312.2%
EBITDA margin 16.3% 6.0% 1030 bps
PBT 1,125.6 14.6 NM
PAT 1,042.5 (14.2) NM
Cash Profit * 1,386.4 238.3 481.9%
EBITDA margins for FY11 increase to 16.3% supported by better product mix, market
mix, favorable exchange rates & impact of margin improvement measures.
Cash Profit = EBITDA + Other Income - Product Development Expenses Net Interest - Tax Paid
EBITDA excludes Other Income
Sales nos. over 2.4 lakhs ;
Turnover ~ GBP 10 billion and PBT crosses GBP 1 billion
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Improved macroeconomic conditions, strong demand for products across markets and
internal actions improved profitability over prior year.
Jaguar Land Rover reported a profit after tax of 1,043 mn for FY 11 as against (14) mnin FY 10
Other highlights for the year include:
Significant volume & mix growth over the previous year
Product highlights: Jaguar XJ , Jaguar XKR-75, Land Rover 11MY Freelander incl. 2.2l
turbo diesel engine , Range Rover Ultimate Edition & Discovery Landmark Limited
edition
Exchange rates continue to be a positive factor
Net Debt as on Mar 31, 2011 at GBP 233 mn vs GBP 603 mn as on March 31, 2010
Jaguar Land Rover Plc : Highlights
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Jaguar Land Rover Wholesale volumes & market mix
Russia 4.2%
China 9.7%
RoW 15.3%
UK 28.4%
Europe(excl.
Russia),
23.0%North
America
19.4%
47,418
52,993
146,564
190,628
FY 10 FY 11
Jaguar Land Rover
26%
193,982
243,621
NorthAmerica
21.6%
Europe(excl.Russia),
22.4%
UK 24.0%RoW 16.2%
China 11.0%
Russia 4.8%
Wholesale
Sales
FY10
Wholesale
Sales
FY11
Healthy volume growth
Sales in China +
Russia improved 43%
in FY 11
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16INVESTOR RELATIONS
Tata Motors Finance
Total vehicle financing disbursals (TMF) for FY11 were Rs. 7,908 Crs, an increase of 18%
from Rs 6,697 Crs in FY10.
The book size at the end of March 11 for TMFL and TML (Vehicle Financing) stood at Rs
9,878 Cr and Rs. 247 Cr respectively.
TMF market-share for FY11 stood at 21.4%. NIM of vehicle financing business (TMF ) for
FY11 was 10.1%.
TMF issued Unsecured Non-Convertible, Subordinated, Perpetual Debentures of Rs 150
crores towards Tier 1 capital
* Excludes Other Income ; # Excludes Other income and Net Interest
Rs. Crores FY11 FY10 % change
Disbursal (Nos) 164,262 148,015 11.0%
Net Revenue * 1,366.6 1,132.0 20.7%
Operating Income # 146.2 (4.5) NM
Operating Margin 10.7% NA NM
PAT 127.1 44.2 187.8%
% of Revenues 9.3% 3.9% 138.4%
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Europe,
30%
North
America,
37%
APAC
(Including
India) 33%
Tata Technologies
Increased operational efficiency and cost reduction measures
continue to improve EBITDA margins to 14.4%
Business traction and subsidiaries profitability led to best FY
performance of the Company from PAT perspective
Diversified customer base and key marquee clients in automotive &
aerospace businesses
Primary issue of shares of ~ USD 30 mio to Private equity in April
2011
Revenue break-up FY11Note: *Excludes Other Income
Rs. Crores FY11 FY10 % change
Net Revenue * 1249.3 1070.4 16.7%
EBITDA * 187.4 126.4 48.3%
% of Revenues 15.0% 11.8% 320 bps
Net Profit 139.0 91.0 52.8%
% of Revenues 11.1% 8.5% 260 bps
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INVESTOR RELATIONS
FY 11 Market share stood at 23.2 % vs 26.1 % over FY 10
Functioning of our sales company (100% subsidiary of TDCV) launched in July 2010 in the
domestic market has now stabilized.
Been able to improve our market share sequentially on a quarter on quarter basis in FY 10-11
EBITDA and PAT margins have declined marginally due to lower volumes
Tata Daewoo
Note: *excludes Other Income
Rs. Crores FY11 FY10 % change
Sales (Units) 8748 8769 -0.2%
Net Revenue * 2,881.1 2,728.7 5.6%
EBITDA * 187.5 191.7 -2.2%
% of Revenues 6.5% 7.0% (50) bps
Net Profit 73.0 81.6 -10.6%
% of Revenues 2.5% 3.0% (50) bps
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HV Axles & HV Transmissions
Sales Revenue continued to increase on the back of growth in domestic CV market
While overall cost pressures increased, EBITDA margins were supported by improved volumes and cost control
initiatives
Wef 1 April 2011, HV Axles & HV Transmissions to be amalgamated subject to regulatory approvals and
proposed to be renamed as TML Drivelines Limited
HV
Transmissions
Ltd
HV
Axles Ltd
Note: *Excludes Other Income
Rs. Crores FY11 FY10 % Change
Net Revenue * 312.1 238.7 30.7%
EBITDA * 184.5 137.3 34.3%
% of Revenues 59.1% 57.5% 160 bps
Net Profit 94.2 63.8 47.5%
% of Revenues 30.1% 26.7% 340 bps
Rs. Crores FY11 FY10 % Change
Net Revenue * 294.4 209.8 40.3%
EBITDA * 174.5 114.4 52.5%
% of Revenues 59.3% 54.5% 480 bps
Net Profit 90.8 52.6 72.4%
% of Revenues 30.8% 25.1% 570 bps
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Standalone
FinancialHighlights
Subsidiaries
WayForward
Tata Motors
Jaguar Land Rover
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21INVESTOR RELATIONS
Freight rates continue to appear healthy with demand in haulage segments being robust.
Increase in infrastructure spending could propel demand for MHCV trucks. Services and
agriculture sector along with rural connectivity, proliferation of hub & spoke model and
demand of passenger applications is expected to drive growth in LCV/SCV segment
Proposed ramp up of ACE family production via additional capacity in Dharwad
In May 2011 the ACE family was expanded to include Magic Iris & Ace Zip.
Future products in pipeline for FY 12 Variants from MHCV & Prima range, World LCV
range.
Extend export potential
Commodity prices & concerns on cost continues. Supply constraints been mostly
addressed.
Current macro economic factors like high inflation, rising interest rates, slower industrial
growth have the potential to adversely impact CV demand
Competitive intensity expected to increase, but Company well placed with a wide and
compelling product portfolio and customer support
Way Forward Tata Motors - Commercial vehicles
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Increased focus on rural markets expected to drive volume growth
Continue transformation and strengthening of the existing product portfolio through
improved value propositions and exploiting emerging trends
Leverage young product portfolio to strengthen market position
Further expand sales and service network in India and enhanced customer care
Sustain low cost base with continuous cost reduction efforts
Extend export potential, commence exports of the Tata Nano
Future products in pipeline for FY 12 Nano variants, Vista refresh, Manza Limited edition,
New Safari, Aria 2WD
Competitive intensity and increasing costs in the passenger vehicle segment could pose a
risk to operating margins
While disposable incomes and consumption has risen, higher inflation, interest costs, fuel
price increases have the potential to impact demand
Way Forward Tata Motors - Passenger vehicles
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Way Forward - Jaguar Land Rover
Continue to work on profitable volume growth, managing costs and improving efficiencies to
sustain the growth momentum
Continuous sustainable technology and product investment plans
Range Rover Evoque for sales from Summer of 2011
New Jaguar and Land Rover 12MY products
Emphasis on growth markets : China, Russia, India and Brazil
Announcement that Jaguar C-X75 hybrid supercar is to be produced in association with
Williams F1
External geopolitical and economic factors including exchange rate, could impact volumes and
profitability
Jaguar Land Rover has completed a 1 billion equivalent 7 & 10 year bond offering in the
capital markets to refinance existing debt, including repayment of Tata Motors funding and for
general corporate purposes
Further steps to improve the capital structure through extension of debt profile under way.
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Thank You