Volume recovery led by introduction of new products and an improved performance by Jaguar Land Rover (JLR) helped Tata Motors post a consolidated net profit of Rs 2,571.06 crore for the year ended March 31, 2010. The auto major posted a consolidated loss of Rs 2,505.25 crore in the previous fiscal. The results were announced after the market closed on Thursday. Shares of the company were up 4.74% on the BSE to close at Rs 742.90.
For the year ended March 31, 2010, JLR posted a net profit of ?3 million and net revenues for the year stood at ?6,550 million.
However, the company expressed concerns over the uncertainty in the European region, hardening commodity prices and currency volatility. Talking to the mediapersons here, C Ramakrishnan, chief financial officer, Tata Motors, said: ?Our focus will be on improving cost structures, including pricing ability, cash flow management and better alignment of production.? Also in the scheme of internal actions are reduction of non-personnel related overhead costs and divestment, he said.
The capex plan for FY11 includes around Rs 3,000 crore for Tata Motors and ? 600-700 million for JLR. ?We will continue to de-leverage further and restructure debt,? he said.
Total consolidated income of the company stood at Rs 92,519.25 crore in FY10 as against Rs 70,880.95 crore in FY09.
The operating margins for the year stood at 11.74% from 6.84%. However, the company pointed it may not be able to maintain the margins at the same levels this year. The debt equity ratio stood reduced at 2.05 from 4. The total debt on the company’s accounts, excluding the financing business through Tata Motors Finance, stood at Rs 18,800 crore in FY10 as against Rs 23,750 crore in FY09.
On a standalone basis, net profit for the year stood at Rs 2240.08 crore as against Rs 1001.26 crore, an increase of 124%. Total income for the year was at Rs 35,593.05 crore against Rs 25,629.73 crore.
During the year, Tata Motors attained a one-time gain of Rs 1,751.54 crore on sale of investments, including profit on sale of Telcon Construction Equipment Company (Telcon). The company sold 20% stake in Telcon to Hitachi Construction Machinery Company. It also reported an unamortised debt issue cost of Rs 105.04 crore written off on prepayment of the bridge loan for acquisition of JLR business.
Asked about the impact of EU crisis on the JLR performance, Carl-Peter Forster, Tata Motors group chief executive officer, said, ?We are watching what is going on in the EU and we have seen some slowdown there. JLR customers are aware of the situation and we see it coming back quickly if the situation does not get extended.?