Tata Motors Revealed Not So Impressive Q1 Numbers

Tata Motors disclosed a 57 per cent slip in consolidated net profit amounting to Rs 2,260.40 crore for the first quarter ended June 30, owing to post Brexit adverse foreign exchange impacting its British arm JLR(Jaguar Land Rover). According to the company, it had posted a consolidated profit of Rs 5,254.23 crore in the same period last financial year.

Consolidated net sales in the first quarter went up 10 per cent at Rs 66,101.27 crore versus Rs 60,093.79 crore in the year-ago period. The company noted higher volumes in both standalone as well as Jaguar Land Rover business more than offset by the adverse forex impact of Rs 2,296 crore and adverse commodity derivatives impact of Rs 167 crore in the operating profit mainly in the JLR business.

The company also quoted lower local market incentive in the JLR business against the corresponding quarter last year and higher depreciation and amortisation expenses as compared to last year because of the decline in consolidated profit for the quarter. On a standalone basis, the company stated a net profit of Rs 25.75 crore for the first quarter, down 91.11 per cent from Rs 289.84 crore in the year-ago quarter. Standalone net sales were at Rs 11,311.24 crore versus Rs 10,262.76 crore in the year-ago period, up 10.21 per cent.

The sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, is seen at 1,26,839 units showing  a growth of 8 per cent for the last year. Jaguar Land Rover posted profit after tax of 304 million pounds compared with 492 million pound, slipped 38.21 per cent over last year. Revenue for the first quarter is recorded at 5,461 million pounds compared with 5,002 million pounds.

The company further added that the operating performance in the quarter highlights the overall higher wholesales, offset by unfavorable forex impact of 207 pounds million, which includes evaluation of 84 million pounds, specifically EUR payables resulting from depreciation in the Pound following the Brexit vote. JLR wholesales (excluding China JV) for the quarter were at 1,20,776 units, adding China JV wholesales for the quarter were at 13,558 units.

As on 26^th August Tata Motors share price was quoting at Rs. 514.25. The stock opened at Rs. 502.00 and touched the day’s high and low at Rs. 515.35 and Rs. 486 respectively. It ended at Rs. 503.75, up by 4.13%.

The lower price band of the share is Rs. 444.50 and the upper price band is Rs. 543.20. The 52 week high of Tata Motors share price is observed at Rs. 522.60 on 8h AUG ’16 while the 52 week low is seen at Rs. 265. 80 on 11th Feb ’16. The Average Daily Movement of the stock is 12.53 and its average volume for last 20 days is 6365040. The stock yields -1.03% monthly returns and has the PE ratio of 15.51. The market cap of the company amounts to Rs. 171057.40 (Cr) and has a book value of Rs.237.83.