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Results for Quarter Ending 30th June 2003 Press kit

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July 21, 2003

Tata Engineering – Sales volumes up by 48%, Revenue up by 40%
Profit Before Tax at Rs. 163.67 crores

Tata Engineering’s Profit Before Tax for the 1st Quarter of 2003-04 has increased to Rs.163.67 crores as compared to Rs.38.85 crores in the corresponding quarter of the previous year. The robust growth in domestic market demand for commercial and passenger vehicles enabled the Company to increase its volumes in the domestic market by 48%. The Company also improved its market shares and continued its cost reduction efforts.

The total Revenue for the quarter was Rs. 2923 crores (Rs.2087 crores) representing a growth of 40%. Domestic sales of commercial vehicles in the quarter were 26,705 nos., an increase of 26% over 21,201 nos. in the same period last year resulting in a market share of 57%, an improvement of 3%. Sales of passenger vehicles were at 30,118 nos. as against 17,556 vehicles sold in the corresponding period last year resulting in a market share of 15.5%. The previous year quarter operations were impacted by the planned shutdown of the car plant on account of the changes in the production lines.

The unaudited financial results for the quarter ended June 30, 2003 are enclosed.

– Ends –

Issued by:
V Krishnan
Tata Engineering and Locomotive Company Limited
V. P. (Corporate Communications)
Phone: 56657209;
Visit us at : www.telcoindia.com

FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED JUNE 30, 2003

Particulars
Quarter ended June 30,
FY
   
2003
2002
2002-03
(A)  
(Unaudited)
(Unaudited)
(Audited)
1 Vehicle Sales:(in Nos.)      
  Commercial vehicles
26705
21201
106194
  Passenger Cars and Utility vehicles
30118
17556
104155
  Exports
3573
2009
9510
   
60396
40766
219859
2 Vehicle Production:(in Nos.)      
  Commercial vehicles
25856
23702
116155
  Passenger Cars and Utility vehicles
31673
18373
107304
   
57529
42075
223459
3 Export Turnover (at F.O.B. value) Rs. Crores
166.34
108.46
458.07
  US $ M
35.80
22.19
95.45
         
(B)  
(Rupees Crores)
1 Net Sales/Income from operations
2922.70
2087.24
10,837.01
2 Total Expenditure      
  (a) (Increase) / Decrease in stock in trade and work in progress
70.05
(67.61)
(119.74)
  (b) Consumption of Raw Materials & Components
1526.65
1130.34
5,699.58
  (c) Staff Cost
185.59
162.96
720.37
  (d) Excise Duty
421.78
339.51
1,743.79
  (e) Other expenditure
387.06
320.62
1,653.60
  (f) Sub Total 2(a) to 2(e)
2591.13
1885.82
9,697.60
3 Operating Profit [1-2]
331.57
201.42
1,139.41
4 Other Income (Note 1)
10.49
6.94
18.04
5 Interest      
  (a) Gross Interest
58.68
85.81
319.87
  (b) Capitalisation of Interest and other receipts
(4.89)
(5.78)
(40.92)
  (c) Net Interest
53.79
80.03
278.95
6 Product Development expenses/Amortisation (Note 2)
11.44
2.62
7 Depreciation
93.01
89.48
359.51
8 Profit before extraordinary/exceptional items [3+4-5-6-7]
183.82
38.85
516.37
9 Extraordinary/Exceptional Items
  (a) Provision/(Write back) for Contingencies

(20.00)
  (b) Employee Sesheettion Cost (Note 3)
20.15
  (c) Provision for diminution in value of investments
26.00
  (d) Sub Total 9(a) to 9(c)
20.15
6.00
10 Profit Before Tax [8-9]
328.52
107.91
510.37
11 Less: Provision for Taxation
  (a) Current Tax
12.58
28.25
  Provision for Earlier Years Written Back

(8.54)
  (b) Deferred Tax
50.78
10.82
181.78
  Provision for Deferred Tax for Earlier Years

8.77
  (c) Sub Total of 11(a) and 11(b)
63.36
10.82
210.26
12 Profit After Tax [10-11]
100.31
28.03
300.11
13 Paid-up Equity Share Capital (Face value of Rs. 10 each)
319.83
319.82
319.83
14 Reserves excluding Revaluation Reserve
2,277.33
15 Basic EPS (not annualised) Rupees
3.14
0.88
9.38
  Diluted EPS (not annualised) Rupees
3.07
9.22
16 Aggregate of Non-Promoter Shareholding
  – Number of Shares
216874927
216775417
216776927
  – Percentage of shareholding
67.82%
67.79%
67.79%

Notes:

  1. Other Income includes Rs.10.29 Crores towards additional consideration determined during the quarter in respect of a trade investment sold in the year 1999-2000, in terms of the sale agreement.

  2. The expenditures on product development, which were classified as deferred revenue expenditure in earlier periods are now accounted for under ‘Intangible Assets’ consequent to the Accounting Standard on Intangible Assets (AS-26) becoming effective. The basis of amortisation of such expenditure is similar to that followed in the preceding periods except that product development expenditure below certain value is charged as expenditure when incurred. Accordingly, Rs. 0.88 Crores incurred in the quarter and Rs. 4.02 Crores included in deferred revenue expenses as of March 31, 2003 have been charged in the quarter. Consequently profit for the quarter is lower by Rs. 4.90 Crores.

  3. As per the Accounting Standard on ‘Intangible Assets’ (AS-26), which has become effective from April 1, 2003, the Company has written off cost under the ‘Employee Sesheettion Scheme’ as against the past practice to treat such cost as deferred revenue expenditure and to amortise the same over a period of 24 to 84 months. Consequently Employee Sesheettion Cost for the quarter is higher and profit is lower by Rs. 19.91 Crores, such cost being ascertained on the basis of actuarial valuation.

  4. An amount of Rs. 9.87 Crores paid in the quarter ended June 30, 2003 towards premium on the early redemption of Debentures aggregating Rs. 95 Crores has been debited to Securities Premium Account.

  5. 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 of India, are considered to constitute a single segment.

  6. 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 FY 01-02 to 03-04 (Rs. Crores)
    Actual upto Jun 30,2003 (Rs.Crores)
    (a) Capital expenditure, Product development expenditure and strategic investment
    780
    529
    (b) Prepayment/Repayment of borrowings
    527
    560
    Total
    1307
    1089
  7. As on April 1,2003 there were 12 investors complaints outstanding, 342 investor complaints were received during the period under review and 349 complaints resolved during the said period, five complaints were pending as on June 30, 2003 (these were lodged in the last two weeks of June 2003 and have been resolved as on date).

  8. The Statutory Auditors have carried out a Limited Review of the results stated in (B) above for the quarter ended June 30, 2003.

  9. Figures of previous periods have been regrouped/reclassified wherever necessary, to make them comsheetble.

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 July 21, 2003

Tata Motors Limited

RATAN N TATA
Chairman

Mumbai, July 21, 2003

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