Tata Motors has come out with its Q3FY07 result. The company posted consolidated Q3 net profit of Rs 602.07 crore (Rs 6.02 billion) versus Rs 550 crore (Rs 5.5 billion) in the corresponding quarter of the previous year. Its consolidated net sales was up at Rs 8,176 crore (Rs 81.76 billion) compared to Rs 5,970 crore (Rs 59.70 billion), YoY.

Key takeaways from concall

• The vehicle sales volume for the quarter was 1,41,827 units, compared to 1,11,228 units during the corresponding quarter last year, an increase of 28%
• The company's forex gain was at Rs 132 crore (Rs 1.32 billion) as against loss of Rs 43.2 crore (Rs 432 million), 50 % of this came from export receivables on account of rupee appreciation
• Consolidated revenue in the first nine months of 2006-07 at Rs.22,649.63 crores recorded an increase of 43% against Rs.15,876.23 crores in the corresponding period last year.
• The consolidated 9 months PAT at Rs.1,520.18 crores compared to Rs.1,205.49 crores, recorded a growth of 26%
• The OPM stood at 14.3% versus 12.9%.
• The other income stood at Rs 10.28 crore (Rs 102.8 million) versus Rs 170 crore (Rs 1.7 billion).
• Tata Motors' standalone net sales increased to Rs 6,960 crore (Rs 69.60 billion) from Rs 5,070 crore (Rs 50.70 billion).
• Its standalone net profit was up at Rs 510 crore (Rs 5.10 billion) from Rs 460 crore (Rs 4.6 billion).
• The vehicle sales volume in the first nine months at 4,07,925 units grew by 33% compared to 3,05,786 units in the previous year period.
• Exports amounted to 38,834 vehicles during the period, a growth of 11% compared to 34,849 vehicles during the previous year period
• At the end of the first nine months, Tata Motors’ market share in commercial vehicles is 64.7 % compared to 60.2 % in the previous year period, and in passenger vehicles the market share is 16.1 % compared to 15.8 % in the previous year period
• Tata Motors' proposed JV agreement with Fiat extending the scope of co-operation beyond the current levels is likely to be announced by end FY07 or early FY08
• The company plans capex of Rs2bn each for HVAL & HVTL
• The company has invested Rs3.45bn towards equity capital in its new 100% subsidiary TML Financial Services Ltd which will function as an NBFC
• The M/HCV truck segment registered a volume growth of 37.7% yoy from 30,186 unit sales in Q3FY06 to 14,567 unit sales in Q3FY07. With sales of 23701 units in
• 3QFY07, HCV truck segment grew 83.5% yoy. ICV truck volumes grew by 19.6% yoy to 4645 units (3884 units in 3QFY06).
• Despite this, there was a 1.2% yoy decline inn MCV truck sales to 13221 units in the quarter on account of continued shift in the truck market in favour of heavy trucks. Consequently, market share for the company in the overall M/HCV truck segment declined from 69.7% to 66.5%.
• The LCV goods carrier segment of Tata Motors registered a 49.4% growth at 30002 units in 3QFY07 resulting in a market share gain of 300bps to 65.3% (62.3%). An average of 6200 units of Tata Ace were sold in the quarter. The Pick up segment, including Tata Ace grew by 90% yoy to 24249 units resulting in market share increasing to 66.3% (59.8% previously).
• The total bus segment of Tata Motors at 18284 units grew by 22% yoy resulting in a market share gain of 700bps for the company at 49.6%.
• In the passenger car space despite increasing competition, Tata Motors increased its market share to 18.5% (17.6% in 3QFY06). In the mid sized passenger car segment despite the industry declining by 32% in the quarter, the company retained its market share at 37.2%. Tata Safari volumes were at 3600 units in the quarter.
• In the international space, although passenger car exports was to the tune of 11611 units, the sharp depreciation of the Rand continued to adversely impact exports to South Africa. Key export destinations were South Africa, South Asia, Turkey and parts of Europe.