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TATA MOTORS 2021-22 Annual Report Analysis
Mon, 20 Jun

TATA MOTORS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TATA MOTORS Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 47.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.2% in FY22 as against 6.2% in FY21.
  • Depreciation charges increased by 5.5% and finance costs increased by 15.0% YoY, respectively.
  • Other income declined by 23.2% YoY.
  • Net profit for the year declined by 13.7% YoY.
  • Net profit margins during the year grew from 5.2% in FY21 to 4.0% in FY22.

TATA MOTORS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 2,497,948 2,784,536 11.5%
Other income Rs m 57,574 44,242 -23.2%
Total Revenues Rs m 2,555,522 2,828,778 10.7%
Gross profit Rs m 154,122 227,199 47.4%
Depreciation Rs m 235,467 248,357 5.5%
Interest Rs m 80,972 93,119 15.0%
Profit before tax Rs m -104,743 -70,034 -33.1%
Tax Rs m 25,419 42,313 66.5%
Profit after tax Rs m -130,161 -112,347 -13.7%
Gross profit margin % 6.2 8.2
Effective tax rate % -24.3 -60.4
Net profit margin % -5.2 -4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TATA MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 1,507 billion as compared to Rs 1,577 billion in FY21, thereby witnessing an decrease of -4.5%.
  • Long-term debt stood at Rs 978 billion as compared to Rs 931 billion during FY21, a growth of 5.0%.
  • Current assets rose 0% and stood at Rs 1,470 billion, while fixed assets fell 6% and stood at Rs 1,798 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 3,267 billion as against Rs 3,386 billion during FY21, thereby witnessing a fall of 4%.

TATA MOTORS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 552,245 445,166 -19.4
 
Current Liabilities Rs m 1,577,492 1,506,828 -4.5
Long-term Debt Rs m 931,128 977,592 5.0
Total Liabilities Rs m 3,386,055 3,267,491 -3.5
 
Current assets Rs m 1,468,876 1,469,775 0.1
Fixed Assets Rs m 1,917,178 1,797,715 -6.2
Total Assets Rs m 3,386,055 3,267,491 -3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA MOTORS Cash Flow Statement Analysis

  • TATA MOTORS's cash flow from operating activities (CFO) during FY22 stood at Rs 143 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -48 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -34 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 65 billion from the Rs 132 billion net cash flows seen during FY21.

TATA MOTORS Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 290,005 142,828 -50.7%
Cash Flow from Investing Activities Rs m -261,263 -47,751 -
Cash Flow from Financing Activities Rs m 99,042 -33,802 -
Net Cash Flow Rs m 132,322 64,590 -51.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -29.3, an improvement from the EPS of Rs -34.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 382.8, stands at -11.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 652.4 727.2
TTM Earnings per share Rs -34.0 -29.3
Diluted earnings per share Rs -39.2 -33.8
Price to Cash Flow x 9.5 11.3
TTM P/E ratio x -7.7 -11.3
Price / Book Value ratio x 1.5 3.5
Market Cap Rs m 807,496 1,541,239
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.9x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 0.2x during FY22, from -0.3x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at -25.2% during FY22, from -23.6% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 1.6% during FY22, from -1.6% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at -0.6% during FY22, from -1.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 0.9 1.0
Debtors’ Days Days 2 2
Interest coverage x -0.3 0.2
Debt to equity ratio x 1.7 2.2
Return on assets % -1.5 -0.6
Return on equity % -23.6 -25.2
Return on capital employed % -1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TATA MOTORS has performed over the last 5 years, please visit here.

TATA MOTORS Share Price Performance

Over the last one year, TATA MOTORS share price has moved up from Rs 337.6 to Rs 382.8, registering a gain of Rs 45.2 or around 13.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,533.7 (down 0.7%). Over the last one year it has moved up from 23,386.0 to 24,533.7, a gain of 1,148 points (up 4.9%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

(To know more, check out historical annual results for TATA MOTORS and quarterly results for TATA MOTORS)

Annual Report FAQs

What is the current share price of TATA MOTORS?

TATA MOTORS currently trades at Rs 407.7 per share. You can check out the latest share price performance of TATA MOTORS here...

What was the revenue of TATA MOTORS in FY22? How does it compare to earlier years?

The revenues of TATA MOTORS stood at Rs 2,828,778 m in FY22, which was up 10.7% compared to Rs 2,555,522 m reported in FY21.

TATA MOTORS' revenue has fallen from Rs 2,972,818 m in FY18 to Rs 2,828,778 m in FY22.

Over the past 5 years, the revenue of TATA MOTORS has grown at a CAGR of -1.2%.

What was the net profit of TATA MOTORS in FY22? How does it compare to earlier years?

The net loss of TATA MOTORS stood at Rs -112,347 m in FY22, which was down -13.7% compared to Rs -130,161 m reported in FY21.

This compares to a net loss of Rs -109,752 m in FY20 and a net loss of Rs -289,337 m in FY19.

Over the past 5 years, TATA MOTORS net profit has grown at a CAGR of NaN%.

What does the cash flow statement of TATA MOTORS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TATA MOTORS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 142,828 m as compared to Rs 290,005 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -47,751 m as compared to Rs -261,263 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -33,802 m as compared to Rs 99,042 m in FY21.

Here's the cash flow statement of TATA MOTORS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations238,574188,908266,329290,005142,828
From Investments-262,016-197,111-341,702-261,263-47,751
From Financial Activity20,11788,30433,89699,042-33,802
Net Cashflow7,30068,431-30,920132,32264,590

What does the Key Ratio analysis of TATA MOTORS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TATA MOTORS reveals:

  • Operating profit margins witnessed a fall and down at 8.2% in FY22 as against 6.2% in FY21.
  • Net profit margins grew from 5.2% in FY21 to 4.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 2.2 as compared to 1.7 in FY21.

Here's the ratio/financial analysis of TATA MOTORS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.6-2.15.76.28.2
Net Profit Margin (%)2.3-9.6-4.2-5.2-4.0
Debt to Equity Ratio (x)0.61.21.31.72.2

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