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Old 27th July 2009, 19:07   #1
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Thumbs up Tata Motors beats forecast and Q1 net jumps 58 pc

Tata Motors has posted a Q1 net up 58%, completely defying expectations that profits would be lower by half.

Quote:
Originally Posted by Economic Times;

Tata Motors Ltd, India's largest vehicle maker, reported a 58 per cent rise in net profit, defying forecasts for a halving of profit as asset sales and lower costs for inputs such as steel countered weaker sales.

Tata Motors, which owns the luxury Jaguar and Land Rover brands and recently launched the Nano, the world's cheapest car, reported a net profit of 5.14 billion rupees ($107 million) in the quarter to June, from 3.26 billion rupees a year earlier.

A Reuters poll of 14 brokerages had forecast net profit to fall 53.6 per cent to 1.5 billion rupees.

Source :

Tata Motors Q1 net jumps 58 pc- Earnings-News By Company-News-The Economic Times

Kudos to Tata Motors .

Last edited by Blue Thunder : 27th July 2009 at 19:11.
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Old 27th July 2009, 19:41   #2
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Thanks for the info. Kindly post sales figures data in this thread
http://www.team-bhp.com/forum/indian...-analysis.html (June 2009 Indian Car Sales Figures & Analysis)

Last edited by karanraheja : 27th July 2009 at 19:42.
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Old 27th July 2009, 19:50   #3
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Originally Posted by karanraheja View Post
Karan i guess he is talking about the Quarterly increase and not the monthly, so i guess opening a thread does look good and this is only related to Tata.
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Old 27th July 2009, 20:47   #4
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I think nano bookings saved tata's hide. what say people?
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Old 28th July 2009, 00:32   #5
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It'll be interesting to see what happens to the figures when the Indigo Vista is launched. Going by the bookings, it does not look like the Nano did a lot to their sales figures though. Maybe the Indica Vista and the CS have a role to play.
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Old 28th July 2009, 01:10   #6
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Quote:
Originally Posted by neel385 View Post
Maybe the Indica Vista and the CS have a role to play.
Indeed Vista and CS are the two star sellers in the Tata stable. In fact so much so that while for other cars they have various discounts like 25k (on Safari) and 20k or something on the Indigo as well as the Sumo Grande they hardly have much discount going (officially at least) on the Vista and CS.
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Old 28th July 2009, 02:23   #7
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Good show by TATA specially when everyone expected the worse and hopefully Nano also gives the company a breath of fresh air.
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Old 28th July 2009, 13:24   #8
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It's not entirely rosy for Tata. Some additional points:

1. Their net revenues have declined 7.6%

Quote:
Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a stand-alone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs.6928.44 crores in the corresponding quarter previous year.
2. Operating margin up 4.3%

Quote:
The company’s continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year.
3. JLR loans = Heavy interest payments

Quote:
The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6%
4. Domestic sales (and exports) down significantly:

Quote:
The company’s domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4% over the corresponding quarter of the previous year, whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year.
Challenges up ahead:

1. How the Indica Vista can gain volumes

2. How the Indigo Vista can be successfully positioned

3. Bringing JLR out of the mess, primarily due to luxury car sales down globally

4. Low presence in MUV sector (compared to Mahindra). New competent UV needed, can the upcoming Innova-killer do it?

5. How can the Nano - with its low price - contribute to the bottom line?

6. When will the commercial vehicles segment fully recover?!
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Old 29th July 2009, 14:03   #9
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When i heard about the losses in the last report, i was very worried. There was a lot of focus on this especially from the foreign media and auto forums. It looked like people were just waiting to pounce on Tata motors the moment they got any bad news.
Its very important that Independent Indian cos. like Tata, Mahindra continue to succeed. Wishing them all the luck and success into the future.
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Old 29th July 2009, 14:05   #10
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Guys, the increase was due to cost cutting and accounting changes not increase in vehicle sales so please read beyond the headlines.
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Old 29th July 2009, 14:38   #11
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Quote:
Originally Posted by 4x4addict View Post
Guys, the increase was due to cost cutting and accounting changes not increase in vehicle sales so please read beyond the headlines.
In this kind of economy any thing is good as long as it is not a loss.
For some companies even decrease in loss as compared to Q1 is good news. I Think each and every company did belt tightening and TML succeeded despite lowering sales.
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Old 29th July 2009, 21:02   #12
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Quote:
Originally Posted by amitk26 View Post
In this kind of economy any thing is good as long as it is not a loss.
For some companies even decrease in loss as compared to Q1 is good news. I Think each and every company did belt tightening and TML succeeded despite lowering sales.
+1
In the present economic scenario worldover and also going by GTO post even in case of TATA JLR is a heavy burdon presently. Hope TML pull of from troubled water with colours.
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Old 29th July 2009, 21:11   #13
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Quote:
Originally Posted by 4x4addict View Post
Guys, the increase was due to cost cutting and accounting changes not increase in vehicle sales so please read beyond the headlines.
and also the sale of Tata Steel shares to parent company Tata Sons. Glad you noticed this aspect.

But, they have also seen some better revenue based on the pricing on some of the cars. The car market is beginning to look up now, but their main segment, namely the HCV segment, has been down, and is not seeing any upturn right now.

The cost-cutting has resulted in a good operating profit margin of 11.4% (up from the earlier 7.1%).

Last edited by Blue Thunder : 29th July 2009 at 21:16.
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Old 30th July 2009, 06:53   #14
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Quote:
Originally Posted by Blue Thunder View Post
The cost-cutting has resulted in a good operating profit margin of 11.4% (up from the earlier 7.1%).
I wonder how much of their costs are due to the warranty related claims. I am sure if they improve QC, they can decrease their warranty costs drastically.
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