TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4%

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TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4%
Mon, 29 Jul

TATA MOTORS has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

TATA MOTORS Quarterly Financials

No. of Mths
Qtr. Ending
3
Jun-18*
3
Mar-19*
3
Jun-19*
QoQ ChangeYoY Change
Net SalesRs m670,813864,220614,670-28.9%-8.4%
Other incomeRs m2,2488,6368,360-3.2%271.9%
TurnoverRs m673,061872,856623,030-28.6%-7.4%
ExpensesRs m626,579779,724586,091-24.8%-6.5%
Gross profitRs m44,23473,42327,491-62.6%-37.9%
DepreciationRs m58,57153,53151,117-4.5%-12.7%
InterestRs m13,75315,88017,1167.8%24.5%
Profit before taxRs m-25,84212,649-32,382-356.0%
TaxRs m-4,1561,1151,96175.9%
Profit after taxRs m-21,68611,535-34,343-397.7%
Gross profit margin%6.68.54.5
Effective tax rate%16.18.8-6.1
Net profit margin%-3.21.3-5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 8.4% on a year-on-year (YoY) basis. The expenses were down by 6.5% YoY during the same period.
  • The company's operating profit declined by 37.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 4.5% in 1QFY20 as against 6.6% in 1QFY19.
  • Depreciation charges declined by 12.7% and finance costs increased by 24.5% YoY, respectively.
  • Other income increased by 271.9% YoY during the quarter.
  • Net profit for the quarter declined by 58.4% YoY. Net profit margins during the quarter declined from -3.2% in 1QFY19 to -5.5% in 1QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 28.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 24.8% QoQ during the same period.
  • The company's operating profit declined by 62.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 4.5% in 1QFY20 as against 8.5% in 4QFY19.
  • Net profit for the quarter declined by 397.7% QoQ, while net profit margins declined from 1.3% in 4QFY19 to -5.5% in 1QFY20.

To see how TATA MOTORS has performed over the last eight quarters,please visit here.

TATA MOTORS Share Price Performance

Over the last one year,TATA MOTORS share price has moved down from Rs 267.7 to Rs 139.5, registering a Loss of Rs 128.2 or around 47.9%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 15,704.8 (down 3.0%). Over the last one year it has moved down from 24,269.3 to 15,704.8, a gain of 8,565 points (down 35.3%).

Overall, the S&P BSE SENSEX is up 2.3% over the year.

Current Valuations

At the current price of Rs 139.5, the price to book value (P/BV) ratio of TATA MOTORS stands at 0.7 times.

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2 Responses to "TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4%"

Manish Kumar Vashista

Jul 29, 2019

Due to problems faced by JLR due to breexit uncertainty & low sales & higher expenses on R&D & B6 will further put pressure on Tata motors ,but valuation & new launches with great acceptebility & EV early entrance can help hold share prices in 130-100 range..Revival of profits will be a long term journey.

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PRASANT KUMAR BEHERA

Jul 29, 2019

tata motors will move northward only from next Quarter Q2 result

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Equitymaster requests your view! Post a comment on "TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4%". Click here!

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