Tata Motors Q1 net up 12% to Rs 2245 cr, stock down 1%

Profit was impacted by exceptional items of Rs 441 crore (as against loss of Rs 57 crore in corresponding quarter of last year) on account of exchange loss including on revaluation of foreign currency borrowings, deposits and loans arising from the depreciation of rupee.

Consolidated net sales increased 28.6% to Rs 43,171 crore from Rs 33,572 crore during the same period due to strong growth in volumes of new products and favourable product mix at JLR, which was largely in-line with analysts' forecast of Rs 42,500 crore.

Interest cost moved higher marginally to Rs 804 crore from Rs 772 crore while other income was up by 50% to Rs 239 crore quarter-on-quarter.

Tata Motors's UK subsidiary Jaguar & Land Rover (JLR) numbers were quite higher than expectations. Net profit rose by 33.33% YoY to GBP 3.6 billion as against forecast of GBP 3.5 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell by 60 basis points YoY to 14.5% as against estimates of 14.2%.

JLR has declared maiden dividend worth GBP 150 million.

Standalone performance

Company's standalone revenues dropped by 8.9% to Rs 10,586 crore as compared to Rs 11,624 crore in a year ago period. Weak macroeconomic parameters, increase in excise duty and poor availability of freight resulted in pressure on volumes in the medium and heavy commercial vehicle segment.

Operating margin was lower by 150 basis points YoY to 7.3% on account of competitive pressures on pricing in certain commercial and passenger vehicle segments and lower volumes.

Profit after tax fell by 49% year-on-year to Rs 205 crore in the first quarter of FY13, which was adversely impacted by forex loss.

Total sales of commercial and passenger vehicles for the quarter ended June 2012 declined 3.6% YoY to 1.90,483 units. Domestic sales volumes of commercial vehicles increased 1.3% YoY to 1,14,710 units, mainly driven by small commercial vehicles.

Company's market share in commercial vehicle segment was 56.2% in the quarter gone by.

Jaguar and Land Rover sales grew 34.4% to 83,452 units led by sales of new Range Rover Evoque and strong demand from China that grew by 91% YoY. Sales from China region comprised 22.2% of total volumes for the quarter as against 15.7% in a year ago period.

At 14:58 hours IST, the share trimmed losses to 1% from 3%, to trade at Rs 239.55 on the NSE.