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Tata Motors: A bumpy ride - Views on News from Equitymaster

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Tata Motors: A bumpy ride

May 29, 2009

Performance summary
  • Full year topline falls 11% YoY on the back of a 14% decline in volumes
  • Operating margins slide 340 basis points as higher costs take their toll
  • Bottomline for the full year falls 51%, mainly on the back of poor operating performance. PBT, which excludes the impact of exceptional items, suffers a fall of 55% YoY during the fiscal.
  • The company has announced a dividend of Rs 6 per share on ordinary shares and Rs 6.5 per share on A shares for the full year FY09.

(Rs m) FY08 FY09 Change
Units sold (excl.traded vehicles) 585,649 506,421 -13.5%
Net sales 287,394 256,608 -10.7%
Expenditure 258,078 239,084 -7.4%
Operating profit (EBDITA) 29,316 17,524 -40.2%
EBDITA margin (%) 10.2% 6.8%  
Other income 4,832 9,260 91.6%
Interest (net) 2,824 6,737 138.6%
Depreciation 7,167 9,257 29.2%
Profit before tax 24,157 10,790 -55.3%
Extraordinary income/(expense) 1,607 (653)  
Tax 5,476 125 -97.7%
Profit after tax/(loss) 20,289 10,013 -50.7%
Net profit margin (%) 7.1% 3.9%  
No. of shares (m) 385.5 514.1  
Diluted earnings per share (Rs)*   19.5  
Price to earnings ratio (x)*   17.1  
(* on trailing twelve months earnings)

What to expect?
At the current price of Rs 333, the stock trades at a P/E of 17 times its FY09 earnings per share. We will put up a detailed analysis post the analyst con call scheduled for today evening.

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Feb 21, 2019 11:11 AM


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