Tata Motors Limited, formerly Tata Engineering and Locomotive Company, is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group, an Indian conglomerate. Have a look at the Tata motors latest result analysis
Tata Motors - Q4 FY20 (Audited –Cons)
CMP: 101
Total revenue from operations 62,493 Cr
86,422 Cr (-27.65%) YoY | 71,676 Cr (-12.85%) QoQ
Year ending revenue: 261,067 Cr Vs. 301,938 Cr (-13.54%)
Net Profit of (9,863) Cr
1,108 Cr (-990.92%) YoY 1,756 Cr (-661.59%) QoQ
Year ending Net profit: (11,975) Cr Vs. (28,724) Cr (58.31%)
EPS (in Rs.) (27.5)
3.38 YoY | 5.10 QoQ
Year ending EPS: (34.88) Vs. (84.89)
View: Result is declined and below expectation. YoY and QoQ revenue
declined and company posted massive losses in the tune of INR 9.8K Cr in
this quarter
Business Updates & Highlights:
EBITDA margin in Q4FY20 is 4.6% Vs. 9.7% in therefore declined by 510 basis
points. Q4FY20 EBITDA margin for JLR 4.8% Vs. 9.8% in Q4FY19 therefore
declined by 500 basis points. Q4FY20 EBITDA margin for TML 5.5% Vs. 18%
Q4FY19 therefore declined by 1250 basis points.
FY20 EBITDA margin is 8.4% Vs. 8.9% in YoY decreased by 50 basis points.
JLR 8.7% Vs. 8.2% in FY19 therefore up by 50 basis points. TML 0.6% Vs.
8.2% in FY19 therefore declined by 760 basis points.
JLR suffered a loss of £501 million in Q4 and £422 million for the full
year on revenues of £5.4 billion and £23 billion, respectively. However,
Earnings Before Interest and Tax (EBIT) which also excludes foreign
exchange and commodity revaluation were still almost breakeven for the year
(margin up 0.6% year on year) and cash flow was positive in Q4.
In FY20 wholesales (including exports) decreased 35.1% to 475,207 units. In
the domestic market, M&HCV growth was - 49.7%, ILCV -26.2%, SCV & Pick Ups
-24.6% and CV Passenger -28.9%. Domestic PV volumes were down 37.4% where
after a successful switch to BSVI there were severe supply disruptions
(China supplies and fire at vendor). Overall domestic retails were higher
than wholesales by 65K.
Finance costs increased by ₹ 1,485Cr to ₹ 7,243Cr during FY'20 vs prior
year due to higher gross borrowings as compared to FY'19
JV Business: For the year, net loss from joint ventures and associates
amounted to ₹ 1,000Cr compared with profit of ₹ 210Cr in prior year. Other
income (excluding grants) was ₹ 990Cr versus ₹ 1,171 Cr in the prior year
Financial
ROE and ROCE is around INR (2)% and 2.5% respectively and book value per
share is around INR 160 and share is currently trading at 0.63x of its book
value. Promoter holding is around 42.3% in the company which is fair and
stable. FIIs, mutual fund and Insurance cos hold around 16.8%, 6.1% and
6.9% in the company and which is decreased in this quarter by FIIs, mutual
fund and Insurance company. Cash and cash equivalent from operating
activities as of March 2020 is around INR (1,484) Cr Vs. 6,292 Cr as of
March 2019..
Position: Share strong support price is INR 84. Long term investor based on
their risk appetite can continue with the company. Short term share can
correct.
Share View: Share price high 201 (52 week) and now 100 almost 50%
corrected. Tata Motors Limited is an Indian multinational automotive
manufacturing It is a part of Tata Group, an Indian conglomerate.
Opportunities: Share has beaten down value and recovered around 40% from
their low in the month of March 2020. While the outlook remains uncertain
the Company expects a gradual recovery of sales and improving cash flows
for the remainder of the year. Company will focus on conserving cash by
rigorously managing cost and investment spends to protect liquidity and ₹
6000Cr of cost and cash savings to planned to be delivered in FY21. The
Company is now seeing an encouraging recovery in China with all its dealers
now open and with sales of 6,828 vehicles in April, down only 3.1% year on
year and 8,068 in May, up 4.2% year on year
Risk: Massive losses posted in this quarter and overall blink picture in
this year as well. Q1 FY21 is expected to be significantly weaker in both
JLR and TML with the full impact of lockdowns being reflected in the
results. Domestic business one time losses in the tune of INR 2,508 Cr for
rationalizing the asset base and other provisions.
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Tata Motors - Q4 FY20 (Audited –Cons)
CMP: 101
Total revenue from operations 62,493 Cr
86,422 Cr (-27.65%) YoY | 71,676 Cr (-12.85%) QoQ
Year ending revenue: 261,067 Cr Vs. 301,938 Cr (-13.54%)
Net Profit of (9,863) Cr
1,108 Cr (-990.92%) YoY 1,756 Cr (-661.59%) QoQ
Year ending Net profit: (11,975) Cr Vs. (28,724) Cr (58.31%)
EPS (in Rs.) (27.5)
3.38 YoY | 5.10 QoQ
Year ending EPS: (34.88) Vs. (84.89)
View: Result is declined and below expectation. YoY and QoQ revenue
declined and company posted massive losses in the tune of INR 9.8K Cr in
this quarter
Business Updates & Highlights:
EBITDA margin in Q4FY20 is 4.6% Vs. 9.7% in therefore declined by 510 basis
points. Q4FY20 EBITDA margin for JLR 4.8% Vs. 9.8% in Q4FY19 therefore
declined by 500 basis points. Q4FY20 EBITDA margin for TML 5.5% Vs. 18%
Q4FY19 therefore declined by 1250 basis points.
FY20 EBITDA margin is 8.4% Vs. 8.9% in YoY decreased by 50 basis points.
JLR 8.7% Vs. 8.2% in FY19 therefore up by 50 basis points. TML 0.6% Vs.
8.2% in FY19 therefore declined by 760 basis points.
JLR suffered a loss of £501 million in Q4 and £422 million for the full
year on revenues of £5.4 billion and £23 billion, respectively. However,
Earnings Before Interest and Tax (EBIT) which also excludes foreign
exchange and commodity revaluation were still almost breakeven for the year
(margin up 0.6% year on year) and cash flow was positive in Q4.
In FY20 wholesales (including exports) decreased 35.1% to 475,207 units. In
the domestic market, M&HCV growth was - 49.7%, ILCV -26.2%, SCV & Pick Ups
-24.6% and CV Passenger -28.9%. Domestic PV volumes were down 37.4% where
after a successful switch to BSVI there were severe supply disruptions
(China supplies and fire at vendor). Overall domestic retails were higher
than wholesales by 65K.
Finance costs increased by ₹ 1,485Cr to ₹ 7,243Cr during FY'20 vs prior
year due to higher gross borrowings as compared to FY'19
JV Business: For the year, net loss from joint ventures and associates
amounted to ₹ 1,000Cr compared with profit of ₹ 210Cr in prior year. Other
income (excluding grants) was ₹ 990Cr versus ₹ 1,171 Cr in the prior year
Financial
ROE and ROCE is around INR (2)% and 2.5% respectively and book value per
share is around INR 160 and share is currently trading at 0.63x of its book
value. Promoter holding is around 42.3% in the company which is fair and
stable. FIIs, mutual fund and Insurance cos hold around 16.8%, 6.1% and
6.9% in the company and which is decreased in this quarter by FIIs, mutual
fund and Insurance company. Cash and cash equivalent from operating
activities as of March 2020 is around INR (1,484) Cr Vs. 6,292 Cr as of
March 2019..
Position: Share strong support price is INR 84. Long term investor based on
their risk appetite can continue with the company. Short term share can
correct.
Share View: Share price high 201 (52 week) and now 100 almost 50%
corrected. Tata Motors Limited is an Indian multinational automotive
manufacturing It is a part of Tata Group, an Indian conglomerate.
Opportunities: Share has beaten down value and recovered around 40% from
their low in the month of March 2020. While the outlook remains uncertain
the Company expects a gradual recovery of sales and improving cash flows
for the remainder of the year. Company will focus on conserving cash by
rigorously managing cost and investment spends to protect liquidity and ₹
6000Cr of cost and cash savings to planned to be delivered in FY21. The
Company is now seeing an encouraging recovery in China with all its dealers
now open and with sales of 6,828 vehicles in April, down only 3.1% year on
year and 8,068 in May, up 4.2% year on year
Risk: Massive losses posted in this quarter and overall blink picture in
this year as well. Q1 FY21 is expected to be significantly weaker in both
JLR and TML with the full impact of lockdowns being reflected in the
results. Domestic business one time losses in the tune of INR 2,508 Cr for
rationalizing the asset base and other provisions.
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