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Tata Motors
F3Q11 Results First Cut – Beats Estimates
Quick Comment – Tata Motors reported F3Q11
numbers with revenues, EBITDA and adjusted net
income growth of 22%, 58% and 177% YoY
respectively. The numbers were 10% ahead of our
estimates. India business, now 33% of EBIT, reported
sequential EBITDA margin expansion with EBITDA of
Rs11.9bn, margins at 10.4%, up 70 bps QoQ. JLR
continued to surprise positively with EBITDA margin of
17.4%, up 80bps QoQ and net income of £275 mn, up
16% QoQ. Overall the India net income (adjusted for
one time gain of Rs300 mn) was 10% ahead of
estimates and JLR net income was 6% ahead of
estimates.
India Business: Operational Improvement is
positive: India posted net income, EBITDA and net
income growth of 28%,4% and 4% YoY. The volume mix
was favorable and overall volumes were up 15% YoY
and down 7% QoQ. ASPs expanded an impressive 8%
QoQ (MHCV and LCV mix share went up). The gross
margin improved 95 bps QoQ to 30% as share of LCVs
in mix went up from 29% in Q2 to 34% in Q3 (Exhibit 4).
Going ahead the company highlighted that demand
momentum is healthy but cost pressures are a concern.
JLR: High Volumes, Lower Incentives and Product
& Regional Mix Favorable Leads to All time high
Margins: The JLR volumes were up 15% QoQ and
ASPs expanded 3.3% QoQ. The regional mix has
improved during the quarter and share of high margin
regions like China is up from 10% in Q2 to 13% in Q3.
JLR made a cash profit of Gbp395 mn up 20% YoY. We
also note that retail sales for the quarter were 58.3k, 8%
lower than wholesale.
Net debt to equity stood at 0.8x with net debt at Rs214bn
and net automotive debt of Rs150 bn. Cash profit for the
group came at Rs35 bn, up 8% QoQ.
Overall a good set of numbers with both businesses showing
operational improvement. The diluted EPS for the quarter and
9 months comes to Rs36.7 and Rs99. We maintain OW and
see upside risks to our earnings estimates. Remain OW and
would revert with details post the conference call.
Conference Call Details : Today 11th Feb at 1830pm IST
(Primary Access: +91 22 6629 0086 / +91 22 3065 0086).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Tata Motors
F3Q11 Results First Cut – Beats Estimates
Quick Comment – Tata Motors reported F3Q11
numbers with revenues, EBITDA and adjusted net
income growth of 22%, 58% and 177% YoY
respectively. The numbers were 10% ahead of our
estimates. India business, now 33% of EBIT, reported
sequential EBITDA margin expansion with EBITDA of
Rs11.9bn, margins at 10.4%, up 70 bps QoQ. JLR
continued to surprise positively with EBITDA margin of
17.4%, up 80bps QoQ and net income of £275 mn, up
16% QoQ. Overall the India net income (adjusted for
one time gain of Rs300 mn) was 10% ahead of
estimates and JLR net income was 6% ahead of
estimates.
India Business: Operational Improvement is
positive: India posted net income, EBITDA and net
income growth of 28%,4% and 4% YoY. The volume mix
was favorable and overall volumes were up 15% YoY
and down 7% QoQ. ASPs expanded an impressive 8%
QoQ (MHCV and LCV mix share went up). The gross
margin improved 95 bps QoQ to 30% as share of LCVs
in mix went up from 29% in Q2 to 34% in Q3 (Exhibit 4).
Going ahead the company highlighted that demand
momentum is healthy but cost pressures are a concern.
JLR: High Volumes, Lower Incentives and Product
& Regional Mix Favorable Leads to All time high
Margins: The JLR volumes were up 15% QoQ and
ASPs expanded 3.3% QoQ. The regional mix has
improved during the quarter and share of high margin
regions like China is up from 10% in Q2 to 13% in Q3.
JLR made a cash profit of Gbp395 mn up 20% YoY. We
also note that retail sales for the quarter were 58.3k, 8%
lower than wholesale.
Net debt to equity stood at 0.8x with net debt at Rs214bn
and net automotive debt of Rs150 bn. Cash profit for the
group came at Rs35 bn, up 8% QoQ.
Overall a good set of numbers with both businesses showing
operational improvement. The diluted EPS for the quarter and
9 months comes to Rs36.7 and Rs99. We maintain OW and
see upside risks to our earnings estimates. Remain OW and
would revert with details post the conference call.
Conference Call Details : Today 11th Feb at 1830pm IST
(Primary Access: +91 22 6629 0086 / +91 22 3065 0086).
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