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Results for Quarter Ending 31st December 2003 Press kit

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January 22, 2004

Q3 Revenues up 55%. PAT at Rs.210.88 crores, up 179%
Sales volumes increase by 53%
Interim Dividend of 40%

III Quarter

Tata Motors reported a Profit Before Tax of Rs. 361.73 crores for the quarter ended December 31, 2003, against a Profit Before Tax of Rs. 131.23 crores in the corresponding period of 2002. Profit After Tax for the quarter was Rs. 210.88 crores after making a provision of Rs. 150.85 crores towards current and deferred tax (Rs.75.71 crores in the corresponding period last year). Operating margins at 14.4% continued to improve, reflecting the growth in volumes and the Company’s ability to manage cost pressures.

The total revenue (net of excise) for the quarter at Rs. 3398.26 crores (Rs. 2194.13 crores in the corresponding period last year) showed a growth of 55%. Sales of commercial vehicles in the domestic market increased to 40,485 nos. in the quarter, an increase of 46% over the same period last year. Passenger Vehicle sales at 30,244 nos. recorded growth of 38%. Exports grew significantly to 7,651 nos. in the quarter as against 1,553 nos. in the corresponding period last year. The Company has commenced supply of Rover branded Tata Indica vehicles to MG Rover of UK as per the agreement signed in December 2002.

April-December ’03

The Company’s revenues at the end of the third quarter (net of excise) stood at Rs. 9075.78 crores (Rs. 6101.02 crores), an increase of 49%. The Profit Before Tax is Rs. 853.92 crores (Rs. 277.99 crores). Sales of commercial vehicles were 1,04,616 nos., an increase of 44% over last fiscal. The Company improved its overall market share in commercial vehicles to 59%. Total sales of passenger vehicles at 97,217 nos. have grown by 42%. Indigo’s market share in its segment stood at 26%, signaling the success of the second product offering on the car platform. The Indigo ended the calendar year 2003 as market leader in its segment, while the Indica volumes grew by 10%. Exports in the 9-month period at 15,068 nos. showed a growth of 152%.

In view of the Company’s continued strong financial performance and keeping in mind the support and understanding of the shareholders during the Company’s two most difficult years when no dividend could be paid, the Board of Directors has declared an interim dividend of 40% for the current financial year.

As a measure of good corporate governance, the Company has decided to publish audited interim results. Accordingly, audited results for the nine months ended December 31, 2003 are attached.

FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED DECEMBER 31, 2003

Particulars
Quarter ended December 31,
Nine months ended
December 31,
Year Ended
March 31, 2003
(A)  
2003
2002
2003
2002
1 Vehicle Sales:(in Nos.)          
  Commercial vehicles
40485
27692
104616
72612
106194
  Passenger Cars and Utility vehicles
30244
21903
97217
68428
104155
  Exports
7651
1553
15068
5982
9510
   
78380
51148
216901
147022
219859
2 Vehicle Production:(in Nos.)          
  Commercial vehicles
42651
29126
109750
77482
116155
  Passenger Cars and Utility vehicles
33399
22104
104089
69978
107304
   
76050
51230
213839
147460
223459
3 Export Turnover (at F.O.B. value) Rs. Crores
320.10
76.01
672.36
294.79
458.07
  US $ M
70.65
15.85
147.48
61.06
95.45
             
(B)  
(Rupees Crores)
1 Net Sales/Income from operations
3,944.59
2,586.68
10,630.52
7,247.56
10,837.01
2 Total Expenditure          
  (a) (Increase) / Decrease in stock in trade and work in progress
(8.22)
(36.00)
4.14
(54.52)
(119.74)
  (b) Consumption of Raw Materials & Components
2,119.53
1,372.46
5,773.19
3,797.33
5,699.58
  (c) Staff Cost
256.78
185.68
657.52
524.67
720.37
  (d) Excise Duty
546.33
392.55
1,554.74
1,146.54
1,743.79
  (e) Other expenditure
540.00
385.00
1,380.31
1,084.05
1,653.60
  (f) Sub Total 2(a) to 2(e)
3,454.42
2,299.69
9,369.90
6,498.07
9,697.60
3 Operating Profit [1-2]
490.17
286.99
1,260.62
749.49
1,139.41
4 Other Income
16.66
0.21
49.93
11.14
18.04
5 Interest          
  (a) Gross Interest
52.64
78.72
158.27
247.63
319.87
  (b) Capitalisation of Interest and other receipts
(5.24)
(11.58)
(31.09)
(33.29)
(40.92)
  (c) Net Interest
47.40
67.14
127.18
214.34
278.95
6 Product Development expenses/Amortisation
2.10
0.40
24.64
0.40
2.62
7 Depreciation
92.98
88.43
279.18
267.90
359.51
8 Profit before extraordinary/exceptional items [3+4-5-6-7]
364.35
131.23
879.55
277.99
516.37
9 Extraordinary/Exceptional Items
  (a) Provision/(Write back) for Contingencies


(20.00)
  (b) Employee Sesheettion Cost (Note 7)
2.62
25.63
  (c) Provision for diminution in value of investments
26.00
  (d) Sub Total 9(a) to 9(c)
2.62
25.63
6.00
10 Profit Before Tax [8-9]
361.73
131.23
853.92
277.99
510.37
11 Less: Provision for Taxation
  (a) Current Tax
25.79
7.31
61.94
12.91
28.25
  Provision for Earlier Years Written Back


(8.54)
  (b) Deferred Tax
125.06
48.21
274.11
102.54
181.78
  Provision for Deferred Tax for Earlier Years


8.77
  (c) Sub Total of 11(a) and 11(b)
150.85
55.52
336.05
115.45
210.26
12 Profit After Tax [10-11]
210.88
75.71
517.87
162.54
300.11
13 Paid-up Equity Share Capital (Face value of Rs. 10 each)
330.49
319.82
330.49
319.82
319.83
14 Reserves excluding Revaluation Reserve
2,277.33
15 Basic EPS (not annualised) Rupees
6.48
2.37
16.09
5.08
9.38
16 Diluted EPS (not annualised) Rupees
5.97
2.34
14.72
5.01
9.22
17 Aggregate of Non-Promoter Shareholding
  – Number of Shares
227341493
216776927
227341493
216776927
216776927
  – Percentage of shareholding
68.84%
67.79%
68.84%
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. In view of the Company’s profitable performance the Board of Directors have announced the payment of Interim Dividend of Rs. 4/- per share for FY 2003-04 (for FY 2002-03 : Rs.4/- as final dividend). The Record Date for the payment of the said Dividend has been fixed as February 13, 2004. The holders of rights warrants who would exercise their right for applying to the Ordinary Shares of the Company by January 31, 2004, as per the terms of the issue, would also be eligible to receive the said dividend.

  3. On November 5, 2003, the Company has signed a binding Memorandum of Understanding (MoU) for the acquisition of Daewoo Commercial Vehicle Co. Ltd., (DWCV), Korea.

  4. (a) The Company has issued Foreign Currency Convertible Bonds (FCCB) amounting to US $ 100 Million ( Rs.461.56 Crores ) on July 31, 2003, which will be due for redemption on July 31, 2008. The bondholders have an option of conversion into Equity 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 of redemption of these notes at any time on or after July 31, 2006, subject to certain conditions.

    (b) An amount of Rs. 0.54 Crores and Rs. 12.42 Crores for the quarter and nine months respectively, paid towards FCCB issue expenses and Rs. 4.02 Crores towards prorata provision for premium on redemption of 1% FCCB has been debited to Securities Premium Account.

    (c) Out of the net proceeds of Rs. 449.49 Crores from the FCCB issue, an amount of Rs. 286.31 Crores has been utilised towards Capital expenditure, Product development expenses and Prepayment of loans and the balance of Rs. 163.18 Crores has been utilised for working capital and invested in debt funds.

  5. (a) As per the terms of Issue, the Warrants issued along with the Convertible Debentures & Non-convertible Debentures carry an option for conversion into shares at a price of Rs. 120/- at any time during the period June 6, 2003 to September 30, 2004. 26,59,736 Ordinary Shares of Rs. 10/- each at a premium of Rs. 110/- were allotted during the quarter on such exercise of option.

    (b) 69,88,828 Ordinary Shares of Rs. 10/- each at a premium of Rs. 240.745 were allotted to the Note holders who opted for conversion of 1% Convertible Notes issued by the Company.

  6. An amount of Rs. 0.39 Crores and Rs. 32.01 Crores for the quarter and nine months respectively, paid towards premium on the early redemption of Debentures aggregating Rs. 15 Crores and Rs. 223 Crores for the quarter and nine months respectively, has been debited to Securities Premium Account.

  7. 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’ 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 is higher and profit before tax is lower by Rs.1.70 Crores and Rs. 23.65 Crores for the quarter and nine months respectively.

  8. The Company is engaged exclusively in the business of manufacture and sale 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.

  9. 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
    December 31, 2003
    (Rs. Crores)
    (a) Capital expenditure, Product development expenditure and strategic investment
    780
    576
    (b) Prepayment/Repayment of borrowings
    527
    560
    Total
    1307
    1136

  10. Details of Investor Complaints: No. of Complaints
    Pending as on 01.10.2003 11
    Received during the quarter ended 31.12.2003 151
    Disposed off during the quarter ended 31.12.2003 16
    Unresolved at the end of the quarter ended 31.12.2003, which has been resolved as of date. 136*
    * 131 complaints pertain to non-receipt of dividend for FY 02-03, the reconciliation of which was completed after the quarter ended December 31, 2003

  11. The Statutory Auditors have carried out Audit of the results stated in (B) above for the nine months ended December 31, 2003 and a Limited Review for the quarter ended December 31, 2003.

  12. Figures for the 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 January 22, 2004. The above results also reflect certain changes in the diluted EPS approved by the Board of Directors on April 19, 2004.”

Tata Motors Limited

RATAN N TATA
Chairman

Mumbai, January 22, 2004

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