Tata Motors

If one were to not look at the various estimates, the company’s performance for Q2FY13 is good. Its consolidated net profit, YoY, was up 10.5% at Rs.1877 crore. Net sales rose 20% at Rs.43,403 crore. Forex gain for the quarter was at Rs.15.3 crore as against a loss of Rs 438.96 crore in Q2FY12. These good numbers were on the back of strong demand, growth in volumes and favourable market mix at Jaguar Land Rover (JLR).  Sales (including exports) of commercial and passenger vehicles for the quarter was at at 2,23,655 units, representing a growth of 5.8% on YoY. Company's overall market share in commercial vehicles improved sequentially and stood at 59.7% in Q2. JLR wholesales for the quarter grew 13.9%. Growth in volumes was driven by continued strong demand from China region, which represented 21.1% of sales for Q2, v/s 16.3% in Q2FY12 and this is by way of sales of Range Rover Evoque. JLR paid a maiden equity dividend of GBP 150 million to Tata Motors.

Looking ahead, at the Press Conference held for declaration of the numbers, the company stated that pressure will continue to remain on LCV and HCVs. This is attributed to the weak macro factors, sluggish demand and rise in fuel prices. The passenger car outlook does not look too bright due to increasing competition. And to beat this, the company plans to launch six passenger car models and some CV models by end of FY13.  As at 30th Sept 2012, total cash in hand with the company was at Rs.23,000 crore. Cyrus P Mistry, deputy chairman of Tata Sons, has been appointed deputy chairman of Tata Motors. He will take over as chairman from Ratan N Tata on his retirement, scheduled for December 2012.