Results for Quarter Ending 31st December 2002
January 22, 2003
Third Quarter profit of Rs.131.23 crores.
Highest Operating Margin in last Four Years
III Quarter
Tata Engineering reported a Profit Before Tax of Rs.131.23 crores for the third quarter ended December 31, 2002 against a loss of Rs.55.54 crores in the corresponding period of 2001. Operating margins (net of excise) improved to 13.1%, the highest in 15 quarters, from 12.1% in the second quarter and 10% in Q3 of 2001-02. This has been achieved through sustained improvements in turnover, market share and continuation of significant cost reduction. The Profit After Tax for the third quarter was Rs.75.71 crores, after making a provision of Rs.55.52 crores towards deferred and current tax (against a loss of Rs.55.54 crores in the corresponding period of the last fiscal).
The total revenue for the quarter was Rs.2585.99 crores (Rs.2080.42 crores) representing a growth of 24.3%. Sales of commercial vehicles in the domestic market increased to 27692 nos. in the quarter, an increase of 35% over the corresponding period last year. Passenger vehicle sales in the quarter were 21903 nos., an increase of 15% over the same period last year. The Indigo, launched in December ’02, received an enthusiastic response from customers with a good order booking position. The Company signed a long term agreement with MG Rover of UK for manufacture and supply of Rover branded Tata Indica vehicles in U.K. and continental Europe.
April – December performance
The Company’s revenues at the end of the third quarter improved 24% to Rs.7259.88 crores (Rs.5852.65 crores). The Profit Before Tax is Rs.277.99 crores (Loss of Rs.216.27 crores). Sales of commercial vehicles were 72612 nos., an increase of 35% over the first three quarters of last year, enabling the Company to improve its market share to 56% in this period. Market share in the M&HCV truck segment at 68.2% is the highest in the last five years. Total sales of passenger vehicles were 68428 nos., representing an increase of 18% over the same period last year. Indica sales at 51469 nos. grew 24% over last year, with an improved market share of 23% in its segment.
The unaudited financial results for the nine months ended December 31, 2002 are enclosed.
FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED DECEMBER 31, 2002
|
Particulars
|
Quarter ended December 31,
|
Nine months ended
December 31, |
Year Ended
March 31, 2002 |
|||
|---|---|---|---|---|---|---|
| (A) |
2002
|
2001
|
2001
|
2001
|
(Audited)
|
|
| 1 | Vehicle Sales:(in Nos.) | |||||
| Commercial vehicles |
27692
|
20479
|
72612
|
53696
|
80687
|
|
| Passenger Cars and Utility vehicles |
21903
|
19001
|
68428
|
57892
|
88610
|
|
| Exports |
1553
|
3451
|
5982
|
8571
|
13927
|
|
|
51148
|
42931
|
147022
|
120159
|
183224
|
||
| 2 | Vehicle Production:(in Nos.) | |||||
| Commercial vehicles |
29126
|
23296
|
77482
|
60480
|
90386
|
|
| Passenger Cars and Utility vehicles |
22104
|
19010
|
69978
|
59099
|
92215
|
|
|
51230
|
42306
|
147460
|
119579
|
182601
|
||
| 3 | Export Turnover (at F.O.B. value) Rs. Crores |
76.01
|
146.65
|
294.79
|
387.25
|
620.21
|
| US $ M |
15.85
|
30.40
|
61.06
|
80.28
|
128.02
|
|
| (B) |
(Rupees Crores)
|
|||||
| 1 | Net Sales/Income from operations |
2585.78
|
2080.27
|
7248.74
|
5832.13
|
8894.80
|
| 2 | Total Expenditure | |||||
| (a) (Increase) / Decrease in stock in trade and work in progress |
(36.00)
|
34.61
|
(54.52)
|
(29.02)
|
49.03
|
|
| (b) Consumption of Raw Materials & Components |
1372.46
|
1100.95
|
3797.33
|
3206.23
|
4716.47
|
|
| (c) Staff Cost |
185.68
|
150.33
|
524.67
|
441.51
|
691.64
|
|
| (d) Excise Duty |
392.55
|
307.62
|
1146.54
|
913.42
|
1389.29
|
|
| (e) Other expenditure |
384.1
|
310.23
|
1085.23
|
852.15
|
1308.28
|
|
| (f) Sub Total 2(a) to 2(e) |
2298.79
|
1903.74
|
6499.25
|
5384.29
|
8154.71
|
|
| 3 | Operating Profit [1-2] |
286.99
|
176.53
|
749.49
|
447.84
|
740.09
|
| 4 | Other Income |
0.21
|
0.15
|
11.14
|
20.52
|
23.26
|
| 5 | Interest | |||||
| (a) Gross Interest |
78.72
|
109.79
|
247.63
|
333.26
|
434.55
|
|
| (b) Capitalisation of Interest and other receipts |
(11.58)
|
(11.85)
|
(33.29)
|
(32.00)
|
(52.32)
|
|
| (c) Net Interest |
67.14
|
97.94
|
214.34
|
301.26
|
382.23
|
|
| 6 | Product Development expenses/Amortisation |
0.4
|
33.42
|
0.4
|
90.59
|
89.83
|
| 7 | Depreciation |
88.43
|
92.2
|
267.9
|
266.86
|
354.68
|
| 8 | Profit before extraordinary/exceptional items [3+4-5-6-7] |
131.23
|
(46.88)
|
277.99
|
(190.35)
|
(63.39)
|
| 9 | Extraordinary/Exceptional Items | |||||
| (a) Provision/(Write back) for Contingencies |
–
|
–
|
–
|
–
|
20.00
|
|
| (b) Employee Sesheettion Cost |
–
|
8.66
|
–
|
25.92
|
25.82
|
|
| (d) Sub Total 9(a) to 9(b) |
–
|
8.66
|
–
|
25.92
|
45.82
|
|
| 10 | (Loss)/Profit Before Tax [8-9] |
131.23
|
(55.54)
|
277.99
|
(216.27)
|
(109.21)
|
| 11 | Less: Provision for Taxation | |||||
| (a) Current Tax |
7.31
|
–
|
12.91
|
–
|
–
|
|
| (b) Deferred Tax |
48.21
|
–
|
102.54
|
–
|
(55.48)
|
|
| (c) Sub Total of 11(a) and 11(b) |
55.52
|
–
|
115.45
|
–
|
(55.48)
|
|
| 12 | (Loss)/Profit After Tax [10-11] |
75.71
|
(55.54)
|
162.54
|
(216.27)
|
(53.73)
|
| 13 | Paid-up Equity Share Capital (Face value of Rs. 10 each) |
319.82
|
255.90
|
319.82
|
255.90
|
319.82
|
| 14 | Reserves excluding Revaluation Reserve |
2145.24
|
||||
| 15 | Basic EPS (not annualised) Rupees |
2.37
|
(2.05)
|
5.08
|
(7.97)
|
(1.98)
|
| Diluted EPS (not annualised) Rupees |
2.34
|
(2.05)
|
5.01
|
(7.97)
|
(1.98)
|
|
| 16 | Aggregate of Non-Promoter Shareholding | |||||
| – Number of Shares |
216776927
|
190241879
|
216776927
|
190241879
|
216785867
|
|
| – Percentage of shareholding |
67.79%
|
74.35%
|
67.79%
|
74.35%
|
67.79%
|
|
Notes:
The operating margins continue to show improvements.
Premium of Rs.1.47 crores paid in the quarter ended December 31, 2002 against the early redemption of debentures amounting to Rs. 10 crores has been reduced from the balance to the credit of the Securities Premium Account.
Consequent to the adjustment of the unamortised balances as of March 31, 2002 against Securities Premium Account, charge towards amortisation of Deferred Revenue Expenditure and Employee Sesheettion Cost during the current period is only Rs. 0.40 crores (Rs.116.51 crores for previous period April-December’01).
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 accruals of Rs.328 crores.
|
Particulars
|
Planned
FY 01-02 to 03-04 (Rs. Crores) |
Actual upto
December 31, 2002 (Rs. Crores) |
|---|---|---|
| (a) Capital expenditure, Product development expenditure and strategic investment |
780
|
384
|
| (b) Prepayment/Repayment of borrowings |
527
|
560
|
|
Total
|
1307
|
944
|
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 one single segment.
Figures for the previous periods have been regrouped wherever necessary.
The above results have been taken on record in the Board Meeting of date.
RATAN N TATA
Chairman
Mumbai, January 22, 2003
