Continuing its good show of the last three quarters since March’10, Tata Motors has once again reported stellar performances in the just concluded December 2010 quarter. India’s largest automobile company which enjoys a unique portfolio of cars – from the mass market Nano to the marque brands like Land Rover and Jaguar – notched up a growth of 273% in its consolidated net profit at Rs. 24.24 billion in Q3FY11 compared to just Rs. 6.5 billion in the same quarter a year ago. The company’s bottom line was boosted by substantial jump in its EBITDA margin which rose to 15.2% from 11.8%, a growth of 340 bps, during the said period. The company’s consolidated net revenue too grew at a healthy 22% to Rs. 316.85 bn in Q3FY11 from Rs. 259.74 bn in Q3FY10.
On a sequential basis, in Q3FY11, the company’s net revenue rose 10.1% while the PAT growth just failed by a whisper to kiss the double-digit mark, registering a growth of 9.1%.
The super fast growth of the company was no doubt driven by JLR, which have continued their good run of show in European markets, as well as global sales, reflected in the fact that the Indian operations accounted for just Rs. 4.1 billion out of the PAT of Rs. 24.24 billion the company earned during the December quarter of FY 2010-11.
However, the automaker’s standalone results for the said quarter are not so impressive with the company registering a growth of a mere 2.5%, y-o-y, in its bottom line during the Q3FY11, though net revenue grew by a little over 28%, during the same quarter. Further, for the 9-month period, the company’s PAT actually declined by nearly a quarter to Rs. 12.38 bn in 9MFY11 from Rs. 16.43 bn in the same period of the previous fiscal year.
According to the company, its Q3 FY2011 Market share increased Q-o-Q to 64.1% driven by improved share of business in MHCV and LCV. The company resorted to average price increases of ~ 1.2 % in Q3 FY11 along with increased cost reduction initiatives to offset increases in costs due to higher commodity prices. Also, Tata Motors gained market share in CV segment Q-0-Q. The 9m FY 2011 market share for commercial vehicles stood at 62.1%. The 9M FY 2011 market share for passenger vehicles stood at 12.7%.
Tables Sources: Tata Motors
Amy, Chief Editor.
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