Tata Motors Ltd ADR TTM
Q4 2013 Earnings Call Transcript

Transcript Call Date 05/29/2013

Vijay B. Somaiya - Head of IR and Treasury: Welcome to this interaction with the apex management of Tata Motors Limited on the financial results for the year 2012-'13. We have our Vice Chairman, Mr. Ravi Kant; Managing Director, India Operations, Mr. Karl Slym; CEO, Jaguar and Land Rover, Dr. Ralf Speth; Executive Director, Commercial Vehicles, Mr. Ravi Pisharody; President, Passenger Vehicle Business, Mr. Ranjit Yadav; CFO, Tata Motors, Mr. C. Ramakrishnan; CFO, Jaguar Land Rover, Kenneth Gregor; and the apex management of Tata Motors and Jaguar Land Rover.

We will begin this interaction with the presentation from Mr. C. Ramakrishnan to be followed with questions which you may have. Can I request Mr. C. Ramakrishnan to come on the stage and begin the interaction with the presentation?

C. Ramakrishnan - President and CFO: Thank you, Vijay. Good evening and welcome to all of you and I apologize for the delay in starting the proceedings. Our Managing Director, India Operations, Karl Slym is expected to join in the next few minutes.

We have the presentation following the declaration of our results consolidated as well as standalone for the financial year '12-'13.

To start with, at the global consolidated level, which includes Tata Motors India, Jaguar Land Rover and our overseas other companies like Daewoo and all our Indian subsidiaries, we report an annual turnover for the year, March 2013 of INR188,000 crores which up 14% from the previous year, INR165,000 crores. EBITDA margin remained almost steady at 14.1% compared to 14.3% in the previous year. Profit after-tax was, however, lower at INR9,800 crores compared to INR13,000 crores. Some of this in terms of detail, we will see in the following slides.

For the quarter we just ended, quarter four ending March 2013, the revenue was INR56,000 crores, up 10%. EBITDA margin was 14.9%, up from 14.1% and profit after-tax for the quarter was INR3,900 crores.

A short while ago, we announced our results at which time, the Board of Directors, we also announced the declaration of dividend, considering the overall performance particularly Jaguar Land Rover but also taking into account and having regard to the continued challenging operating environment in India, the Board of Directors have taken a prudent view and have declared a dividend of INR2 per ordinary share compared to INR4 for the previous year.

The consolidated balance sheet we remained strong. The net automotive debt to equity which excludes the Tata Motor Financing operations, the automotive debt-to-equity at a consolidated level remains strong and low at 0.24 to 1. Totally, we have spent about INR20,000 crores – INR21,000 crores on capital expenditure and product development, which is the investment for the future. We remain strong in terms of liquidity and cash balances, which stands at about INR29,000 crores, and we have contributed significantly to the net worth increase in this year.

Coming to Tata Motors standalone in greater detail, the picture here is different in terms of the year just ended. You've seen and we've shared with you the details of the Indian operations for the last few quarters, which has been under significant challenge from a macroeconomic and operating environment point of view.

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