1. Tata Motors Q4 PAT falls but beats analysts poll; JLR sales and revenue rise

Tata Motors Q4 PAT falls but beats analysts poll; JLR sales and revenue rise

Automobile major Tata Motors Ltd’s today reported its consolidated net profit at Rs 4,336 crore for the fourth fiscal quarter of FY17, a 16.79 percent fall from Rs 5,211 reported in the corresponding quarter last fiscal year.

By: | Updated: May 23, 2017 5:56 PM
Consolidated Profit before tax (PBT) fell to Rs 5,166 crore from Rs 5,888 crore in the corresponding quarter last year.

Automobile major Tata Motors Ltd’s today reported its consolidated net profit at Rs 4,336 crore for the fourth fiscal quarter of FY17, a 16.79 percent fall from Rs 5,211 reported in the corresponding quarter last fiscal year. The announced consolidated PAT was 64.55% higher than the estimated Rs 2,635 crore in an analysts’ poll conducted by ET Now. Consolidated profit before tax (PBT) fell to Rs 5,166 crore from Rs 5,888 crore in the corresponding quarter last year.

Consolidated revenue (net of excise) for the quarter under review declined 2.86 percent on-year basis to Rs 77,272 crore against Rs 79,549 crore. The company said that its revenues were lower by Rs 9,032 crore due to translation impact from British Pound to Indian Rupee.

Consolidated revenues and consolidated profit after tax (post profit/loss in respect of joint ventures and associate companies) for the year are lower by Rs 27,686 crore and Rs 1,074 crore, due to translation impact from GBP to INR.

The company said, “it has been a challenging and highly volatile year, which followed a period of low demand and inconsistent recovery in the prior years in the automotive sector in India. In addition, the company also underperformed on many fronts, amplifying the impact of the external environment. On the way forward, we have detailed actions under focused implementation, and expect to significantly enhance the overall business performance in the coming periods.”

The company’s Jaguar Land Rover business saw a 13 percent on-year rise in retail sales; revenues in pound terms were up 10.1 percent on-year.

“During Q4 FY17, the company reviewed the presentation of foreign exchange gain/(loss) in the income statement, following the continued increase in hedging activity and volatility in FX rates. Accordingly, it was considered more appropriate to present realised foreign exchange relating to the hedging of revenue and costs exposures as an adjustment to revenue and costs for Q4 FY17 and FY17,” the company said.

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For the financial year ended March 31, 2017, the consolidated revenue (net of excise) was Rs 269,850 crore against Rs 273,111 crore for the last year. The consolidated profit before tax for the year ended March 31, 2017, was Rs 9,315 crore against Rs 14,126 crore in the last year. Consolidated profit after tax (post profit/loss in respect of joint ventures and associate companies) for the year ended March 31, 2017, was Rs Rs 7,557 crore, as against Rs 11,678 crore in the last year.

Tata Motors’ statement added that its commercial vehicle segment witnessed a muted growth due to weak replacement demand and subdued freight demand from industrial segment, which was post demonetization and lower pre-buying before the implementation of BS-IV emission norms. The Medium and Heavy Commercial Vehicle segment witnessed a fall of 2.2% on-year while the Light Commercial Vehicle segment witnessed a fall of 6.1% in FY17. Exports fell 8.7% on-year.

Tata Motors passenger vehicles segment grew by 44.3% on-year with its car segment growing at 42.8% on-year and Utility Vehicles (including Vans) segment grew at 51.7% on-year on the back of continued strong response to the Tiago and the launch of Tata Hexa and Tata Tigor.

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