TATA MOTORS Announces Quarterly Results (2QFY19); Net Profit Down 155.0%
Tue, 6 Nov

TATA MOTORS has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

TATA MOTORS Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-17*
3
Jun-18*
3
Sep-18*
QoQ ChangeYoY Change
Net SalesRs m701,560670,813721,1217.5%2.8%
Other incomeRs m1,8882,2486,172174.6%226.9%
TurnoverRs m703,448673,061727,2938.1%3.4%
ExpensesRs m611,462626,579658,5445.1%7.7%
Gross profitRs m90,09844,23457,27429.5%-36.4%
DepreciationRs m49,69958,57159,4121.4%19.5%
InterestRs m11,47313,75312,269-10.8%6.9%
Profit before taxRs m30,814-25,842-8,234-126.7%
TaxRs m10,898-4,1562,719-75.1%
Profit after taxRs m19,916-21,686-10,953-155.0%
Gross profit margin%12.86.67.9
Effective tax rate%35.416.1-33.0
Net profit margin%2.8-3.2-1.5
* 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 grew 2.8% on a year-on-year (YoY) basis. The expenses were up by 7.7% YoY during the same period.
  • The company's operating profit declined by 36.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.9% in 2QFY19 as against 12.8% in 2QFY18.
  • Depreciation charges increased by 19.5% and finance costs increased by 6.9% YoY, respectively.
  • Other income increased by 226.9% YoY during the quarter.
  • Net profit for the quarter declined by 155.0% YoY. Net profit margins during the quarter declined from 2.8% in 2QFY18 to -1.5% in 2QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 7.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 5.1% QoQ during the same period.
  • The company's operating profit increased by 29.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 7.9% in 2QFY19 as against 6.6% in 1QFY18.
  • Net profit for the quarter increased by 49.5% QoQ, while net profit margins increased from -3.2% in 1QFY18 to -1.5% in 2QFY19.

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 up from Rs 461.6 to Rs 197.3, registering a Loss of Rs 264.3 or around 57.3%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 20,617.2 (down 0.0%). Over the last one year it has moved down from 25,560.8 to 20,617.2, a gain of 4,944 points (down 19.3%).

Overall, the S&P BSE SENSEX is up 4.0% over the year.

Current Valuations

At the current price of Rs 197.3, the price to book value (P/BV) ratio of TATA MOTORS stands at 0.6 times.