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Annual Results Financial year 2002-03 Press kit

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May 27, 2003

Significant Turnaround in Tata Engineering’s Performance
Profit Before Tax of Rs.510.37 Crores
Returns to dividend list

Quarter IV

Tata Engineering reported a Profit Before Tax of Rs.232.38 crores as against Rs.106.20 crores in the same period last year, representing an increase of 119%. Revenues increased by 17% to Rs.3588.27 crores. Profit After Tax for the current quarter was Rs. 137.57 crores.

The Company established some significant landmarks in this quarter, namely – highest sales volumes of 72837 units and highest net revenue of Rs. 3588.27 crores.

Commercial vehicle sales for the quarter increased to 34025 nos., a growth of 24% over the same period last year. The Passenger Car Business recorded a sale of 35867 units, an increase of 16% over the corresponding period last year. The Indigo, which was successfully launched in December 2002, recorded a sale of 6813 nos. achieving a 26% market share for the quarter in the entry level ‘C’ segment.

2002-03

The year 2002-03 was significant for the Company as it achieved the highest ever revenues (net of excise) and the vehicle sales of 219,859 units. The Indica project achieved another milestone by becoming profitable in the fourth year of its operations.

Total revenues for the year ended March 31, 2003 improved by 22% to Rs. 10837.01 crores (pervious year Rs. 8891.95 crores). Higher revenues and continuing cost reduction efforts enabled the Company post an operating profit of Rs.1139.41 crores as against Rs. 741.46 crores in 2001-02. The Company reported a Profit Before Tax of Rs.510.37 crores as against a loss of Rs. 109.21 crores in the previous year, reflecting the successful culmination of the corporate turn-around plan vigorously pursued by the Company over the last two years. The Profit After Tax was Rs.300.11 crores, after a provision of Rs.210.26 crores for current and deferred taxes (previous year : Loss After Tax of Rs.53.73 crores).

Commercial vehicle sales in the domestic market (including deemed exports), for the year at 107,438 nos. grew 30% over last year. The Company gained market shares in both M&HCV truck and bus segments. Domestic sales in passenger vehicles crossed the 100,000 mark, for the first time, with sales of 104,414 nos. representing a growth of 17.5% over the previous year. Indica’s market share improved from 22.8% to 24.2%.

Dividend

In view of the Company’s profitable performance, the Board of Directors has recommended a dividend of Rs.4/- per share for the FY 02-03 (for the FY 01-02 : Rs.NIL).

The Annual General Meeting of the Company will be held on July 21, 2003 to consider the accounts of FY 2002-03.

The audited financial results for the year ended March 31, 2003 are enclosed.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2003

Particulars
Nine months ended
Quarter ended March , 31
F Y
   
Dec 31, 2002
2003
2002
2003
2002
   
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
(Audited)
(A)            
1 Vehicle Sales:(in Nos.)          
  Commercial vehicles
72612
33582
26991
106194
80687
  Passenger Cars and Utility vehicles
68428
35727
30718
104155
88610
  Exports
5982
3528
5356
9510
13927
   
147022
72837
63065
219859
183224
2 Vehicle Production:(in Nos.)          
  Commercial vehicles
77482
38673
29906
116155
90386
  Passenger Cars and Utility vehicles
69978
37326
33116
107304
92215
   
147460
75999
63022
223459
182601
3 Export Turnover (at F.O.B. value) Rs. Crores
294.79
163.28
232.96
458.07
620.21
  US $ M
61.06
34.39
47.74
95.45
128.02
B)  
(Rupees Crores)
1 Net Sales/Income from operations
7248.74
3588.27
3059.82
10837.01
8891.95
2 Total Expenditure          
  (a) (Increase) / Decrease in stock in trade and work in progress
(54.52)
(65.22)
78.05
(119.74)
49.03
  (b) Consumption of Raw Materials & Components
3797.33
1902.25
1510.24
5699.58
4716.47
  (c) Staff Cost
524.67
195.70
250.13
720.37
691.64
  (d) Excise Duty
1146.54
597.25
475.87
1743.79
1389.29
  (e) Other expenditure
1085.23
568.37
451.92
1653.60
1653.60
  (f) Sub Total 2(a) to 2(e)
6499.25
3198.35
2766.21
9697.16
8150.49
3 Operating Profit [1-2]
749.49
389.92
293.61
1139.41
741.46
4 Other Income
11.14
6.90
2.74
18.04
23.26
5 Interest          
  (a) Gross Interest
247.63
72.24
101.29
319.87
434.55
  (b) Capitalisation of Interest and other receipts
(33.29)
(7.63)
(20.32)
(20.32)
(52.32)
  (c) Net Interest
214.34
64.61
80.97
278.95
278.95
6 Amortisation of Deferred Revenue Expenditure
0.40
2.22
2.62
89.83
7 Depreciation
267.90
91.61
87.81
359.51
354.68
8 Profit before extraordinary/exceptional items [3+4-5-6-7]
277.99
238.38
127.57
516.37
(62.02)
9 Extraordinary/Exceptional Items
  (a) Provision/(Write back) for Contingencies
(20.00)
20.00
(20.00)
20.00
  (b) Employee Sesheettion Cost
25.82
  (c) Provision for diminution in value of investments
26.00
1.37
26.00
1.37
  (d) Sub Total 9(a) to 9(c)
6.00
21.37
6.00
47.19
10 Profit Before Tax [8-9]
277.99
232.38
106.20
510.37
(109.21)
11 Less: Provision for Taxation
  (a) Current Tax
12.91
15.34
28.25
  Provision for Earlier Years Written Back
(8.54)
(8.54)
  (b) Deferred Tax
102.54
79.24
(55.48)
181.78
(55.48)
  Provision for Deferred Tax for Earlier Years
8.77
8.77
  (c) Sub Total of 11(a) and 11(b)
115.45
94.81
(55.48)
210.26
(55.48)
12 Profit After Tax [10-11]
162.54
137.57
161.68
300.11
(53.73)
13 Paid-up Equity Share Capital (Face value of Rs. 10 each)
319.82
319.83
319.82
319.83
319.82
14 Reserves excluding Revaluation Reserve
2,277.33
2145.24
15 Basic EPS (not annualised) (Rupees)
5.08
4.30
5.96
9.39
(1.98)
  Diluted EPS (not annualised) (Rupees)
5.01
4.23
5.96
9.22
(1.98)
16 Aggregate of Non-Promoter Shareholding
  – Number of Shares
216776927
216776927
216785867
216776927
216785867
  – Percentage of shareholding
67.79%
67.79%
67.79%
67.79%
67.79%

Notes:

  1. Figures for the previous periods have been regrouped/reclassified wherever necessary, to make them comsheetble.

  2. An amount of Rs.15.44 crores paid in the quarter ended March 31, 2003 towards premium on the early redemption of Debentures amounting to Rs.231.03 crores has been debited to the Securities Premium Account.

  3. During the previous year, the Company recognised the Deferred Tax credit of Rs. 55.48 crores for the full year in the 4th Quarter. Therefore, the Profit after Tax in Quarter 4 of FY 2001-02 is not comsheetble with the Profit after Tax of Quarter 4 of the current year.

  4. The Company has revised its depreciation rates on laptops from 16.21% to 23.75% and on cars from 9.5% to 19% to bring the carrying value of these assets in line with the market realisable values. Accordingly, the Company has taken an additional depreciation charge of Rs. 6.63 crores in the current financial year.

  5. Deferred tax provisions of Rs.9.75 crores relating to period prior to March 31, 2001 has been debited to General Reserve.

  6. The Company is engaged exclusively in the business of automobile products consisting of all types of commercial and passenger vehicles. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants, are considered to constitute one single segment.

  7. Following is the status on utilisation of proceeds of issues of the Rights – Convertible and Non-convertible Debentures (including proceeds on warrants to be exercised) of Rs. 979 crores, and internal accrual of Rs.328 crores:

    Particulars
    Planned in the financial year
    2001-02 to 2003-04
    (Rs. Crores)
    Actual upto
    March 31, 2003
    (Rs. Crores)
    (a) Capital expenditure, Product development expenditure and strategic investment
    780
    499
    (b) Prepayment/Repayment of borrowings
    527
    560
    Total
    1307
    1059

  8. The Board of Director has recommended a dividend of Rs.4/- per Ordinary Shares of Rs.10/- each for FY 2002-03 (Rs.NIL for FY 2001-02) which if approved by the Members at the Annual General Meeting to be held on July 21, 2003 would be paid on or after the said date.

  9. As per the terms of Issue, the Warrants issued along with the Convertible Debentures and Non-convertible Debentures can be exercised into shares at a price of Rs.120/- at any time during the period June 6, 2003 to September 30, 2004. Shares allotted on such exercise will not be eligible for dividend for the FY 2002-03.

The above Results and this release have been reviewed by the Audit Committee of the Board and were taken on record by the Board of Directors at its meeting held on May 27, 2003.

Tata Motors Limited

RATAN N TATA
Chairman

Mumbai, May 27, 2003


 

” UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2003″

Particulars
Rs. Crores
   
FY 2002-03
FY 2001-02
   
(Unaudited)
(Unaudited)
1 Net Sales/Income from operations
11413.86
9305.14
2 Total Expenditure
  (a) (Increase) / Decrease in stock in trade and work in progress
(103.47)
95.18
  (b) Consumption of Raw Materials & Components
6018.45
4915.76
  (c) Staff Cost
906.24
868.14
  (d) Excise Duty
1809.37
1390.47
  (e) Other expenditure
1534.41
1248.57
  (f) Sub Total 2(a) to 2(e)
10165.00
8518.12
3 Operating Profit [1-2]
1248.86
787.02
4 Other Income
23.43
19.91
5 Interest
  (a) Gross Interest
420.49
492.25
  (b) Capitalisation of Interest and other receipts
(95.06)
(47.58)
  (c) Net Interest
325.43
444.67
6 Amortisation of Deferred Revenue Expenditure
12.63
95.90
7 Depreciation
397.74
392.22
8 Profit/(Loss) for the year before extraordinary/exceptional items [3+4-5-6-7]
536.49
536.49
9 Extraordinary/Exceptional Items
  (a) (Write back) / Provision for Contingencies
(20.00)
20.00
  (b) Employee Sesheettion Cost
12.75
32.92
10 Profit/(Loss) Before Tax [8-9]
540.74
(180.15)
11 Less: Provision for Taxation
359.51
354.68
  (a) Current Tax (net of provisions written back)
24.52
3.03
  (b) Deferred Tax (Includes provision for earlier years)
201.88
(70.43)
  (c) Sub Total of 11(a) and 11(b)
226.40
(67.40)
12 Profit/(Loss) After Tax [10-11]
314.34
(112.75)
13 Share of income in Associate
(14.86)
14 Minority Interest in Consolidated Profit/(Loss)
(0.81)
5.56
15 Profit/(Loss) after adjustment in minority interest
298.67
(107.19)
16 Paid-up Equity Share Capital (Face value of Rs.10/- each)
319.83
319.82
17 Reserves excluding Revaluation Reserve
1922.68
1836.17
18 Basic EPS (not annualised) Rupees
9.34
(3.95)
19 Diluted EPS (not annualised) Rupees
9.17
9.17

Notes on Consolidated Financial Results for the year ended March 31, 2003:

  1. As per Accounting Standard (AS 21) on Consolidated Financial Statements and Accounting Standard (AS 23) on Accounting for Investments in Associate in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India, the following subsidiaries and associates have been considered.

    Subsidiary Company Ownership in (%) Associate Company Ownership in (%)
    Telco Construction Equipment Co Ltd 80.00 Tata Cummins Ltd 50.00
    Tata Technologies Ltd 96.12 Tata AutoComp Systems Ltd 50.00
    TAL Manufacturing Solutions Ltd 99.47 Concorde Motors Ltd 49.00
    HV Axles Ltd 99.11 Tata Precision Singapore (Pte) Ltd 49.99
    HV Transmission Ltd 99.00 Nita Company Ltd (Bangladesh) 40.00
    Sheba Properties Ltd 100.00 Tata International Ltd 20.34
    Minicar (India) Ltd 100.00 Tata Finance Ltd 29.67
    Telco Dadajee Dhackjee Ltd 81.04    
    Tata Technologies, US 96.12    

  2. The figures for the current year are prepared based on AS 21 and AS 23 and are therefore not comsheetble with those of the previous year, which were prepared considering only AS 21.

  3. This consolidated financial result should be read in conjunction with the notes to the individual financial results for the Financial Year March 31, 2003.

The above Results and this release have been reviewed by the Audit Committee of the Board and were taken on record by the Board of Directors at its meeting held on May 27, 2003.

Tata Motors Limited

RATAN N TATA
Chairman

Mumbai, May 27, 2003

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