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  • FEBRUARY 1, 2001

Tata Finance: Net profits down 25%

Tata Finance' operating margins improved for the second consecutive quarter in 3QFY01 on the back of lower interest cost. However, higher depreciation charge and other expenses apart from a drop of 50% in other income hit the bottomline of the company. The company's net profits during the quarter declined by 25%.

(Rs m) 2QFY00 2QFY01 Change
Operating Income 1,242 1,433 15.4%
Other Income 204 88 -57.0%
Interest Expenses 862 932 8.1%
Operating Profit (EBDIT) 380 502 31.9%
Operating Profit Margin (%) 30.6% 35.0%  
Other expenses 157 210 33.8%
Depreciation 182 192 5.8%
Profit before Tax 246 188 -23.7%
Provisions & write offs 69 64 -6.8%
Tax 40 20 -48.9%
Profit after Tax/(Loss) 137 103 -24.9%
Net profit margin (%) 11.0% 7.2%  
No. of Shares (eoy) (m) 40.82 45.48  
Diluted Earnings per share* 12.0 9.0  
P/E (at current price) 4 6  
*(annualised)      

At the current market price of Rs 50 Tata Finance is trading at a P/E of 6 times its 3QFY01 annualised earnings with a Price/Book value ratio of 0.5 times.

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