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    Tata Motors Analysis

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    Sumit Karkamkar
    Tata Motors manufactures passenger cars, multi-utility vehicles, commercial vehicles, buses, and construction equipment. It is India's largest automobile company and a subsidiary of the Tata Group conglomerate. Though based in India, Tata Motors exports its products around the world. The company hopes to sell half of India's luxury inter-city buses by 2015 with its new Divo bus line. Tata Motors also unveiled a concept car that could achieve 100 km per liter of fuel and plans to open more showrooms for its ultra-affordable Nano car.

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    Tata Motors Analysis

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    Sumit Karkamkar
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    Tata Motors manufactures passenger cars, multi-utility vehicles, commercial vehicles, buses, and construction equipment. It is India's largest automobile company and a subsidiary of the Tata Group conglomerate. Though based in India, Tata Motors exports its products around the world. The company hopes to sell half of India's luxury inter-city buses by 2015 with its new Divo bus line. Tata Motors also unveiled a concept car that could achieve 100 km per liter of fuel and plans to open more showrooms for its ultra-affordable Nano car.

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    Tata Motors manufactures passenger cars, multi-utility vehicles, commercial vehicles, buses, and construction equipment. It is India's largest automobile company and a subsidiary of the Tata Group conglomerate. Though based in India, Tata Motors exports its products around the world. The company hopes to sell half of India's luxury inter-city buses by 2015 with its new Divo bus line. Tata Motors also unveiled a concept car that could achieve 100 km per liter of fuel and plans to open more showrooms for its ultra-affordable Nano car.

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    186 views3 pages

    Tata Motors Analysis

    Uploaded by

    Sumit Karkamkar
    Tata Motors manufactures passenger cars, multi-utility vehicles, commercial vehicles, buses, and construction equipment. It is India's largest automobile company and a subsidiary of the Tata Group conglomerate. Though based in India, Tata Motors exports its products around the world. The company hopes to sell half of India's luxury inter-city buses by 2015 with its new Divo bus line. Tata Motors also unveiled a concept car that could achieve 100 km per liter of fuel and plans to open more showrooms for its ultra-affordable Nano car.

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    TATA MOTORS

    Tata Motors Limited, founded in 1945, manufactures two and four passenger cars, multiutility vehicles, and commercial vehicles including mini-trucks, heavy dumpers, multi-axled vehicles, tractor-trailers, mixers, and cargo attachments. The company also provides light, medium, and heavy buses such as Magic, a four-wheeler public transport vehicle, and Winger, a maxi-van. Through subsidiaries, Tata Motors also provides construction equipment and machine tools, engineering development, supply chain management, axles and gearboxes for the commercial automotive market, after-market operations, and software; other subsidiaries operate automotive retailing and services and vehicle financing (for company branded vehicles). Though based in Mumbai, India, Tata Motors products are exported throughout Europe, Africa, the Middle East, south Asia, south east Asia, and South America. The parent company and subsidiaries are part of the Tata Group.

    Background of TATA MOTORS


    Type of companyTraded asListed onFounded inFoundersHeadquarter sIndustry Key personArea servedProductsPublic ( subsidiary of TATA Group conglomerate ) (TATAMOTORS) (BSE: 500570 ) The Stock Exchange, Mumbai, National Stock Exchange of India Ltd., New York Stock Exchange, London Stock Exchange 1945 J. R. D. Tata Mumbai, Maharashtra, India Automotive Mr. Ratan Tata (Non-Executive Chairman) Worldwide Automobiles, Commercial vehicles, passenger cars & Construction equipments

    Why TATA MOTORS Ltd?


    It is the largest automobile company according to market capitalisation in India. Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees.

    Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain.

    News (Period 1st Feb2012 31st March2012)


    Tata Motors has reported a sales turnover of Rs 13,337.90 crore and a net profit of Rs 173.67 crore for the quarter ended Dec '11. It hopes to sell at least half of total super luxury inter-city buses sold in India by 2015, helped by its Divo buses it has started selling in India. Divo will directly compete with the multinational giants Volvo and Mercedes in this segment. 700-800 inter-city super luxury buses are sold in India each year and Volvo is the dominant player with 50-60% share. The company unveiled a concept car at Geneva Motor Show, Tata Megapixel that can deliver up to 100 kilometres from a litre of fuel by using a unique combination of technology. It is likely to be commercially launched in around three years. Tata Motors plans to launch 230 showrooms for its ultra-cheap Nano car in the next 12 months in India.The company currently has 120 exclusive Nano showrooms, Sri Lanka and Nepal being "natural" export markets for Nano. Tata Motors -owned Jaguar Land Rover will invest 3.5 billion yuan (over Rs 2,800 crore) in its joint venture with Chery Automobile in China to commence local assembly in the Asian country. . China accounted for 17% of JLR volumes in the third quarter of Financial year 2011-12. Jaguar Land Rover announced plans to raise funds up to 500 million pound in the UK.

    Graph

    Analysis: Key Financial Ratios

    RATIOS

    Dividend per share


    Net Profit Margin(%) Debt Equity Current Ratio Earnings per share

    MARCH 2011 20.o0 3.74 0.8 0.53 28.55

    MARCH 2010 15.00 6.26 1.12 0.44 39.26

    The company announced a dividend of 200% in 2011 as against 150% in 2010 on face value of the share. The net profit margin has decreased mainly due to increased expenditure as compared to 2010. Debt equity ratio has decreased due to increase in equity share capital and decrease in total debt. Thus company has a comfortable debt level. The current ratio has increased due to increase in current assets alongwith decrease in current liabilities as compared to 2010. The EPS has decreased due to decreased net profit & increase in the number of ordinary shares.

    Future Prospects
    It is estimated that compared with 48% of motorcycles sales in the rural areas, only 11% of cars/UVs sales are today contributed by the rural market, which indicates a potential growth opportunity in this market. The Company has offered affordable transport solutions and distribution channels to leverage the opportunities presented by this market. The Companys product portfolio in commercial vehicles and passenger cars and wide distribution channels enables the Company to take advantage of various opportunities in international business. The Company has also set up and is further exploring the setting up of manufacturing footprint overseas, which would combine these advantages with local operations and sourcing in these markets. An electric car is undergoing field trials on the streets in the UK. An electric version of the Ace commercial vehicle is also on trial. A parallel hybrid bus trial is now on in Mumbai, plus a fuel cell bus that was debuted as a concept at the Auto Expo in January. Work is also on to meet new Indian emission norms like BS IV and BS V.

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