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Results for Quarter Ending 30th September 2003 Press kit

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October 29, 2003

Q II Revenues up 47%. PAT up 251%, Gains in sales volumes and market share

II Quarter

In the continued buoyant market conditions, Tata Motors reported revenues (net of excise) of Rs.3176.60 crores for the quarter ended September 30, 2003, an increase of 47.1% over Rs.2159.16 crores in the second quarter last year. The Profit Before Tax stood at Rs.328.52 crores as compared to Rs.107.91 crores in the same period last year, an increase of 204%. Operating margins (net of excise) at 13.8% continued to improve due to higher sales volumes and better operational efficiencies. Profit After Tax for the second quarter, after provision of Rs.121.84 crores towards current and deferred tax, stood at Rs.206.68 crores, as compared to Rs.58.80 crores in the second quarter of last year, an increase of 251%.

Half Year

The Company’s revenues (net of excise) at the end of the first half of the year 2003-04 improved by 45.3% to Rs.5677.52 crores (Previous year – Rs.3906.89 crores). The Profit Before Tax for the first half of the year was Rs.492.19 crores as compared to Rs.146.76 crores in the same period last year, an increase of 235%. The Profit After Tax for the first half of the year was Rs.306.9 crores, compared to Rs.86.83 crores in the same period last year, an increase of 254%.

The Company recorded significant increases in sales volumes across all product groups. Commercial Vehicle sales in the domestic market in the first half were 64131 nos., an increase of 42.8% (44920 nos. last year). The Company improved its market share from 54% to 58.5% in this period. Passenger Vehicle sales were 66973 nos., an increase of 44% over 46525 vehicles sold in the first half of last year. The Company’s market share in Passenger Vehicles increased to 16.2% from 13.8% in the first half of last year. The Indigo registered a sale of 13238 nos. in the first half of the year and with sales of 20051 nos. since its launch, has remained at the top of its segment with a market share of 27%. Utility Vehicle sales at 13854 nos. grew 20.3% (11520 nos. in the first half last year).

Export volumes at 7417 nos. grew 67.5% over the corresponding period last year (4429 nos.).

The Un-audited Financial Results for the quarter and six months ended September 2003 are enclosed.

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

Particulars
Quarter ended September 30,
Nine months ended
September 30,
Year Ended
March 31, 2003
(A)  
2003
2002
2003
2002
(Audited)
1 Vehicle Sales:(in Nos.)          
  Commercial vehicles
37426
23719
64131
44920
106194
  Passenger Cars and Utility vehicles
36855
28969
66973
46525
104155
  Exports
3844
2420
7417
4429
9510
   
78125
55108
138521
95874
219859
2 Vehicle Production:(in Nos.)          
  Commercial vehicles
41243
24654
67099
48356
116155
  Passenger Cars and Utility vehicles
39017
29501
70690
47874
107304
   
80260
54155
137789
96230
223459
3 Export Turnover (at F.O.B. value) Rs. Crores
185.92
110.32
352.26
218.78
458.07
  US $ M
41.03
22.80
76.83
45.22
95.45
             
(B)  
(Rupees Crores)
1 Net Sales/Income from operations
3,763.23
2,573.64
6,685.93
4,660.88
10,837.01
2 Total Expenditure          
  (a) (Increase) / Decrease in stock in trade and work in progress
(57.69)
49.09
12.36
(18.52)
(119.74)
  (b) Consumption of Raw Materials & Components
2,127.01
1,294.53
3,653.66
2,424.87
5,699.58
  (c) Staff Cost
215.15
176.03
400.74
338.99
720.37
  (d) Excise Duty
586.63
414.48
1,008.41
753.99
1,743.79
  (e) Other expenditure
453.25
378.43
840.31
699.05
1,653.60
  (f) Sub Total 2(a) to 2(e)
3,324.35
2,312.56
5,915.48
4,198.38
9,697.60
3 Operating Profit [1-2]
438.88
261.08
770.45
462.50
1,139.41
4 Other Income
22.78
3.99
33.27
10.93
18.04
5 Interest          
  (a) Gross Interest
46.95
83.10
105.63
168.91
319.87
  (b) Capitalisation of Interest and other receipts
(20.96)
(15.93)
(25.85)
(21.71)
(40.92)
  (c) Net Interest
25.99
67.17
79.78
147.20
278.95
6 Product Development expenses/Amortisation
11.10
22.54
2.62
7 Depreciation
93.19
89.99
186.20
179.47
359.51
8 Profit before extraordinary/exceptional items [3+4-5-6-7]
331.38
107.91
515.20
146.76
516.37
9 Extraordinary/Exceptional Items
  (a) Provision/(Write back) for Contingencies


(20.00)
  (b) Employee Sesheettion Cost (Note 5)
2.86
23.01
  (c) Provision for diminution in value of investments
26.00
  (d) Sub Total 9(a) to 9(c)
2.86
23.01
6.00
10 Profit Before Tax [8-9]
328.52
107.91
492.19
146.76
510.37
11 Less: Provision for Taxation
  (a) Current Tax
23.57
5.60
36.15
5.60
28.25
  Provision for Earlier Years Written Back


(8.54)
  (b) Deferred Tax
98.27
43.51
149.05
54.33
181.78
  Provision for Deferred Tax for Earlier Years


8.77
  (c) Sub Total of 11(a) and 11(b)
121.84
49.11
185.20
59.93
210.26
12 Profit After Tax [10-11]
206.68
58.80
306.99
86.83
300.11
13 Paid-up Equity Share Capital (Face value of Rs. 10 each)
320.64
319.82
320.64
319.82
319.83
14 Reserves excluding Revaluation Reserve
2,277.33
15 Basic EPS (not annualised) Rupees
6.45
1.84
9.59
2.72
9.38
  Diluted EPS (not annualised) Rupees
6.25
1.82
9.28
2.69
9.22
16 Aggregate of Non-Promoter Shareholding
  – Number of Shares
217689135
216776825
217689135
216776825
216776927
  – Percentage of shareholding
67.90%
67.79%
67.90%
67.79%
67.79%

Notes:

  1. The name of the Company has been changed from Tata Engineering and Locomotive Company Limited to Tata Motors Limited with effect from July 29, 2003.

  2. During the quarter, 814,208 Ordinary Shares of Rs. 10/- each at a premium of Rs. 110/- were allotted consequent upon exercise of warrants.

  3. (a) During the quarter, the Company has issued Foreign Currency Convertible Bonds (FCCB) amounting to US $ 100 Million ( Rs.461.56 Crores ), which will be due for redemption on July 31,2008. The bondholders have an option for conversion into Ordinary Shares or Global Depository Shares, at the rate of Rs. 250.745 per Share at any time after September 11, 2003 and upto July 1, 2008. Further, the Company has an option for redemption of these notes at any time on or after July 31, 2006, subject to certain conditions.

    (b) An amount of Rs. 11.89 Crores paid in the half year ended September 30, 2003, towards FCCB issue expenses and Rs. 2.62 Crores towards prorata provision for premium on redemption of FCCB, has been debited to Securities Premium Account.

    (c) Out of the net proceeds from the FCCB issue, an amount of Rs. 222.03 Crores has been utilised towards Capital expenditure, Product development expenses and Prepayment of loans. In the interim, pending deployment, the balance of Rs. 228 Crores is being utilised for working capital and is invested in debt funds.

  4. An amount of Rs. 31.62 Crores paid in the half year ended September 30, 2003, towards premium on the early redemption of Debentures aggregating Rs. 208 Crores, has been debited to Securities Premium Account.

  5. As per the Accounting Standard on ‘Intangible Assets’ (AS-26), which has become effective from April 1, 2003, the Company has written off cost incurred after March 31, 2003, under the ‘Employee Sesheettion Scheme’. The past practice was 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 is higher and profit before tax is lower by Rs. 2.04 Crores and Rs. 21.95 Crores for the quarter and half year, respectively.

  6. The Company is engaged exclusively in the business of automobile products consisting of all types of commercial and passenger vehicles, which are considered to constitute a 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
    September 30, 2003
    (Rs. Crores)
    (a) Capital expenditure, Product development expenditure and strategic investment
    780
    576
    (b) Prepayment/Repayment of borrowings
    527
    560
    Total
    1307
    1136
  8. Details of Investor Complaints: No. of Complaints
    Pending as on 01.07.2003 5
    Received during the quarter ended 30.09.2003 747
    Disposed off during the quarter ended 30.09.2003 751
    Unresolved at the end of the quarter ended 30.09.2003, which has been resolved as of date. 1
  9. The Statutory Auditors have carried out a Limited Review of the results stated in (B) above for the quarter/six months ended September 30, 2003.

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

The above results have been reviewed by the Audit Committee of the Board. They were taken on record by the Board of Directors at its meeting held on October 29, 2003.

Tata Motors Limited

RATAN N TATA
Chairman

Mumbai, October 29, 2003

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