Product Number: 7B20N001

Title: Tata Motors: Can the Turnaround Plan Improve Performance? - Student
Spreadsheet
This spreadsheet supports the product Tata Motors: Will the
Turnaround Plan Improve Performance?(9B20N001)
Prepared by: Shernaz Bodhanwala, Ruzbeh Bodhanwala

Last Revised: January 14, 2020

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Exhibit 6: Tata Motors' Consolidated Production Capacity Utilization

Installed
Capacity Utilization
Production Production (units)
Ratio
Capacity

FY 2017 FY 2018 FY 2017

Tata Motors' plants in India

Medium and heavy commercial vehicles, light
commercial vehicles, utility vehicles, and passenger 1,622,920 529,927 601,695
vehicles
Jaguar Land Rover
Utility vehicles, passenger cars 841,000 620,287 618,000
Other subsidiary companies’ plants (excluding
Jaguar Land Rover)
Medium and heavy commercial vehicles, buses, bus
52,000 21,858 21,036
bodies, and pickup trucks
Joint operations (passenger vehicles) 100,000 12,234 30,655
Total 2,615,920 1,184,306 1,271,386

Source: Created by the case authors based on Tata Motors Limited, Form 20-F for the Fiscal Year Ended March 31, 2018, filed with the United States
 Capacity Utilization
Ratio

FY 2018

1, 2018, filed with the United States Securities and Exchange Commission, July 31, 2018, 71, accessed February 1, 2019, www.tatamotors.com/wp-content/uploads
otors.com/wp-content/uploads/2015/09/22043312/20F-for-2018.pdf.
Case Exhibit 7: Consolidated Income Statements of Tata Motors and Subsidiaries

Fiscal year ended March 31

(in ₹ million except per share data) 2013 2014 2015
Revenue 1,887,927 2,328,337 2,631,590
Cost of Revenue 1,138,471 1,339,531 1,484,710
Gross Profit 749,456 988,805 1,146,880
Selling/General/Administrative Expenses 478,948 630,911 682,237
Selling/General/Administrative Expense 246,555 334,706 341,734
Labour and Related Expense 166,322 215,564 255,490
Advertising Expense 66,071 80,641 85,014
Research and Development 20,216 25,652 28,752
Depreciation and Amortization 76,013 110,782 133,886
Unusual Expense (Income) 6,027 9,854 1,847
Other Operating Expense 43,110
Total Operating Expense (including Cost of Revenue) 1,719,675 2,116,730 2,374,542
Operating Income 168,252 211,607 257,048
Interest Income (Expense), Net (24,828) (16,367) 8,540
Other Expense/Income, Net (6,952) (6,551) (8,126)
Net Income before Taxes 136,472 188,689 257,462
Provision for Income Taxes 37,767 47,648 76,429
Net Income after Taxes 98,705 141,041 181,033
Minority Interest (837) (595) (868)
Equity in Affiliates 1,056 (537) 134
Net Income 98,924 139,909 180,299
Basic Weighted Average Shares 3,222 3,249 3,253
Basic EPS Excluding Extraordinary Items 30.70 43.06 55.43
Basic EPS Including Extraordinary Items 30.70 43.07 55.43

Note: EPS = earnings per share.

Source: Compiled by the case authors from Tata Motors Limited, “Consolidated Income Statements,” Thomson Reuters Eikon, accessed January
 2016 2017 2018
2,776,606 2,744,921 2,954,093
1,534,433 1,593,453 1,742,884
1,242,173 1,151,468 1,211,209
813,697 780,936 854,120
437,203 410,620 461,433
288,809 283,329 303,001
87,685 86,987 89,686
34,688 34,136 35,319
167,108 179,050 215,536
18,504 (11,146) (19,751)

2,568,430 2,576,429 2,828,108

208,176 168,492 125,985
(59,230) (67,810) (4,617)
(7,690) (7,534) (9,820)
141,256 93,148 111,548
30,251 32,512 43,419
111,005 60,636 68,129
(989) (1,022) (1,025)
5,775 14,930 22,783
115,791 74,544 89,887
3,379 3,396 3,396
34.27 21.95 26.47
34.27 21.95 26.47

ters Eikon, accessed January 30, 2019.

Case Exhibit 8: Consolidated Cash Flow Statement of Tata Motors and Subsidiaries

Fiscal year ended March 31

(in ₹ millions) 2013 2014 2015 2016 2017 2018
Cash Flow, Operating Activities
Net Income/Starting Line 98,926 139,910 139,863 116,782 75,566 90,914
Depreciation/Depletion 75,968 110,736 133,864 167,108 179,050 215,536
Non-Cash Items 69,162 96,204 160,245 102,372 33,786 26,673
Unusual Items (1,069) 16 4,016 33,380 (7,270) (7,976)
Equity in Net Earnings (Loss) (1,056) 537 (134) (5,775) (14,930) (22,783)
Other Non-Cash Items 71,287 95,651 156,363 74,766 55,985 57,432
Changes in Working Capital (22,429) 15,066 (78,654) (7,266) 13,591 (96,988)
Accounts Receivable (51,767) 20,626 (31,790) (27,434) (37,724) (140,312)
Inventories (26,558) (28,526) (36,924) (57,434) (66,207) (35,604)
Other Assets (9,990) 11,239 (6,246) 549 (12,750) 1,513
Accounts Payable 81,322 46,939 35,978 39,475 93,006 73,203
Other Liabilities 6,965 7,465 2,264 57,976 56,217 36,863
Other Operating Cash Flow (22,401) (42,678) (41,936) (20,398) (18,951) (32,651)
Cash from Operating Activities 221,626 361,917 355,317 378,995 301,993 236,135
Cash Flow, Investing Activities
Capital Expenditures (188,626) (269,751) (319,622) (315,030) (304,669) (350,789)
Purchase of Fixed Assets (188,626) (269,751) (319,622) (161,359) (160,718) (198,654)
Purchase/Acquisition of Intangible — — — (153,671) (143,951) (152,135)
Other Investing Cash Flow Items (46,288) (29,179) (29,051) (60,014) (76,130) 88,773
Acquisition of Business 0 (1,846) 0 (1,114) 0 —
Sale of Business — — — — — 145
Sale of Fixed Assets 367 499 742 588 534 303
Sale/Maturity of Investment 8,495 10,669 306,156 470,882 342,834 525,766
Investment, Net 2,071 (4,111) (53,930) (47,147) 19,144 23,611
Purchase of Investments (69,777) (54,938) (289,208) (491,835) (452,755) (485,930)
Other Investing Cash Flow 12,556 20,547 7,189 8,612 14,114 24,879
Cash from Investing Activities (234,914) (298,930) (348,672) (375,044) (380,799) (262,016)
Cash Flow, Financing Activities
Financing Cash Flow Items (76,335) (73,120) (71,477) (58,236) (53,839) (55,066)
Total Cash Dividends Paid (15,272) (6,886) (6,811) 0 (730) 0
Issuance (Retirement) of Stock, Net 2 1 0 74,332 46 0
Issuance (Retirement) of Debt, Net 74,685 41,173 130,302 (54,048) 116,577 75,183
Cash from Financing Activities (16,921) (38,832) 52,014 (37,951) 62,053 20,117
Foreign Exchange Effects 5,219 18,616 (13,656) 8,105 (14,915) 13,064
Net Cash, Beginning Balance 148,499 123,510 166,280 197,431 171,536 139,868
Net Cash, Ending Balance 123,510 166,280 211,283 171,536 139,868 147,168
Cash Interest Paid 46,656 61,706 63,070 57,157 53,363 54,106
Cash Taxes Paid 22,401 43,083 41,940 20,398 18,951 30,212
Free Cash Flow 33,000 92,165 35,696 63,966 (2,676) (114,654)

Source: Compiled by the case authors from Tata Motors Limited, “Consolidated Cash Flow Statements,” Thomson Reuters Eikon, accessed January 3
uters Eikon, accessed January 30, 2019.
Case Exhibit 9: Consolidated Balance Sheet of Tata Motors and Subsidiaries

Fiscal year ended March 31

2012 2013 2014
(in ₹ millions)
Assets
Cash and Short-Term Investments 244,345 223,163 298,170
Cash 64,191 78,779 77,295
Cash and Equivalents 84,139 0 0
Short-Term Investments 96,014 144,385 220,875
Accounts Receivable 190,722 226,822 237,965
Accounts Receivable, Trade, Gross 85,631 112,813 111,959
Provision for Doubtful Accounts (3,262) (3,217) (6,217)
Notes Receivable, Short-Term 108,353 64,382 85,624
Receivables, Other 52,844 46,599
Total Inventory 182,160 210,368 272,709
Inventories, Finished Goods 140,131 166,711 225,108
Inventories, Work in Progress 19,248 21,640 26,570
Inventories, Raw Materials 21,900 21,021 19,701
Inventories, Other 881 997 1,330
Prepaid Expenses 4,499 15,206 18,652
Other Current Assets, Total 22,890 65,976 130,959
Restricted Cash, Current 13,299 63,408 95,046
Discontinued Operations, Current Asset
Other Current Assets 9,591 2,568 35,912
Total Current Assets 644,615 741,536 958,453
Property/Plant/Equipment (Net) 302,401 370,741 508,316
Buildings, Gross 89,677 82,679 109,465
Land/Improvements, Gross 16,975 16,936 20,280
Machinery/Equipment, Gross 585,532 642,165 804,579
Construction in Progress, Gross 31,215 43,451 101,373
Leases, Gross 3,959 4,022 4,043
Other Property/Plant/Equipment, Gross 10,702 12,234 15,394
Accumulated Depreciation, Total (435,660) (430,746) (546,817)
Goodwill, Net 40,937 41,024 49,788
Intangibles, Net 259,724 327,889 465,438
Intangibles, Gross 319,189 414,369 606,775
Accumulated Intangible Amortization (59,465) (86,480) (141,337)
Long Term (LT) Investments 13,915 12,224 11,144
LT Investment, Affiliate Companies 6,686 4,517 3,830
LT Investments, Other 7,230 7,707 7,314
Note Receivable, Long Term 136,580 149,547 124,634
Other Long-Term Assets, Total 51,140 60,823 82,210
Deferred Charges 0 10,339 15,092
Deferred Income Tax, Long-Term Asset 45,393 44,289 23,471
Restricted Cash, Long-Term 0 0 0
 Other Long-Term Assets 5,747 6,195 43,647
Total Assets 1,449,312 1,703,782 2,199,983
Liabilities and Equities
Liabilities
Accounts Payable 0 449,124 573,157
Accrued Expenses 44,795 57,999 44,611
Notes Payable/Short-Term Debt 40,787 116,202 96,959
Current Portion of LT Debt/Capital Leases 191,865 99,402 56,878
Other Current Liabilities 455,233 142,730 151,956
Dividends Payable 12,807 6,452 6,486
Customer Advances 23,688 21,833 22,937
Income Taxes Payable 11,638 17,920 13,969
Other Payables 335,696 19,624 25,802
Discontinued Operations, Current Liability
Other Current Liabilities 71,404 76,901 82,762
Total Current Liabilities 732,681 865,457 923,561
Total Long-Term Debt 279,625 321,553 452,586
Long-Term Debt 279,625 321,553 452,430
Capital Lease Obligations 0 0 156
Deferred Income Tax 21,651 20,482 15,723
Minority Interest 3,071 3,705 4,207
Other Long-Term Liabilities 85,300 116,213 147,872
Total Liabilities 1,122,327 1,327,409 1,543,949
Shareholders' Equity
Common Stock, Total 6,348 6,381 6,438
Additional Paid-In Capital 111,868 113,286 116,831
Retained Earnings (Accumulated Deficit) 250,898 342,854 476,756
Unrealized Gain (Loss) 929 396 229
Other Equity, Total (43,057) (86,544) 55,781
Translation Adjustment (2,740) (8,516) 77,469
Other Equity 0 0 0
Minimum Pension Liability Adjustment (38,706) (62,247) (75,684)
Other Comprehensive Income (1,612) (15,781) 53,996
Total Equity 326,985 376,373 656,035
Total Liabilities and Shareholders' Equity 1,449,312 1,703,782 2,199,984

Source: Compiled by the case authors from Tata Motors Limited, “Consolidated Balance Sheet,” Thomson Reuters Eikon, accessed January 30, 2019
 2015 2016 2017 2018

442,570 491,676 508,807 492,811

370 401 139,868 147,168
197,061 171,135 0 0
245,139 320,140 368,939 345,644
185,209 202,629 211,810 289,383
137,485 148,452 154,530 211,550
(7,757) (12,743) (13,774) (12,617)
51,523 63,397 68,820 84,247
3,958 3,523 2,234 6,203
296,433 335,865 357,697 443,981
229,415 254,870 287,694 344,909
33,645 42,589 36,426 40,432
25,224 26,259 23,757 32,280
8,149 12,147 9,820 26,361
10,584 11,174
60,773 57,892 82,885 133,553
2,347 5,308 2,384 4,939
0 25,852
58,426 52,584 80,502 102,762
995,569 1,099,237 1,161,198 1,359,728
631,173 714,780 697,814 900,108
98,656 121,642 120,143 164,929
66,531 71,615 67,620 73,386
663,011 813,923 816,179 1,023,635
88,527 65,510 101,868 161,429
234 797 667 930
23,243 26,204 23,904 21,884
(309,029) (384,910) (432,566) (546,086)
7,320 7,598 6,733 1,165
530,637 609,129 591,882 713,201
716,431 841,307 834,997 1,085,067
(185,795) (232,178) (243,115) (371,866)
39,434 45,350 52,968 56,517
37,575 37,640 46,060 48,879
1,860 7,710 6,908 7,638
111,096 114,418 141,709 186,799
66,209 80,900 85,240 95,987
19,836 23,090 9,573 11,443
40,494 39,570 44,573 41,587
3,268 2,327 1,318 1,739
 2,611 15,913 29,776 41,219
2,381,437 2,671,412 2,737,544 3,313,505

561,715 615,618 625,326 769,398

30,510 36,284 10,122 12,024
131,547 114,508 138,599 167,949
49,490 73,988 41,149 109,561
220,674 230,097 341,100 373,263

30,671 36,819
8,201 7,235 13,926 15,591
46,052 35,031 31,204 44,236
0 10,702
135,750 151,012 295,970 302,735
993,936 1,070,494 1,156,295 1,432,195
546,071 505,104 606,292 611,995
545,164 504,414 605,752 611,528
908 690 540 468
26,859 45,449 11,740 61,258
4,298 4,328 4,532 5,251
257,547 256,512 378,066 248,528
1,828,711 1,881,887 2,156,925 2,359,226

6,438 6,792 6,792 6,792

114,896 188,874 188,919 188,919
455,627 609,838 617,960 746,948
(52,783) (61,522) (179,116) (36,260)
28,548 45,542 (53,936) 47,880
29,459 46,522 (53,001) 46,212
(911) (1,027) (193) 228
0 0 0 0
0 47 (742) 1,440
552,726 789,524 580,619 954,279
2,381,437 2,671,411 2,737,544 3,313,505

euters Eikon, accessed January 30, 2019.

Tata Motors' Common Size Income Statement

Fiscal year ended March 31

2013 2014 2015
(in percentages)
Revenue 100.00 100.00 100.00
Cost of Revenue
Gross Profit
Selling/General/Administrative Expenses
Selling/General/Administrative Expense
Labour and Related Expense
Advertising Expense
Research and Development
Depreciation and Amortization
Unusual Expense (Income)
Other Operating Expense
Total Operating Expense (including Cost
of Revenue)
Operating Income
Interest Income (Expense), Net
Other Expense (Income), Net
Net Income before Taxes
Provision for Income Taxes
Net Income after Taxes
Minority Interest
Equity in Affiliates
Net Income
 2016 2017 2018

100.00 100.00 100.00

Tata Motors' Common Size Balance Sheet

Fiscal year ended March 31

(in ₹ millions) 2013 2014 2015 2016 2017 2018
Assets
Cash and Short-Term Investments
Cash
Cash and Equivalents
Short-Term Investments
Accounts Receivable
Accounts Receivable, Trade, Gross
Provision for Doubtful Accounts
Notes Receivable, Short-Term
Receivables, Other
Total Inventory
Inventories, Finished Goods
Inventories, Work in Progress
Inventories, Raw Materials
Inventories, Other
Prepaid Expenses
Other Current Assets, Total
Restricted Cash, Current
Discontinued Operations, Current Asset
Other Current Assets
Total Current Assets
Property/Plant/Equipment, Net
Buildings, Gross
Land/Improvements, Gross
Machinery/Equipment, Gross
Construction in Progress, Gross
Leases, Gross
Other Property/Plant/Equipment, Gross
Accumulated Depreciation, Total
Goodwill, Net
Intangibles, Net
Intangibles, Gross
Accumulated Intangible Amortization
Long Term (LT) Investments
LT Investment, Affiliate Companies
LT Investments, Other
Note Receivable, Long Term
Other Long-Term Assets, Total
Deferred Charges
Deferred Income Tax, Long-Term Asset
Restricted Cash, Long-Term
 Other Long-Term Assets
Total Assets 100.00 100.00 100.00 100.00 100.00 100.00
Liabilities and Equities
Liabilities
Accounts Payable
Accrued Expenses
Notes Payable/Short-Term Debt
Current Portion of LT Debt/Capital Leases
Other Current Liabilities
Dividends Payable
Customer Advances
Income Taxes Payable
Other Payables
Discontinued Operations, Current Liability
Other Current Liabilities
Total Current Liabilities
Total Long-Term Debt
Long-Term Debt
Capital Lease Obligations
Deferred Income Tax
Minority Interest
Other Long-Term Liabilities
Total Liabilities
Shareholders' Equity
Common Stock, Total
Additional Paid-In Capital
Retained Earnings (Accumulated Deficit)
Unrealized Gain (Loss)
Other Equity, Total
Translation Adjustment
Other Equity
Minimum Pension Liability Adjustment
Other Comprehensive Income
Total Equity
Total Liabilities and Shareholders' Equity 100.00 100.00 100.00 100.00 100.00 100.00
Key Financial Ratios for Tata Motors

Industry
Ratio Formula FY 2013
Median
Profitability Ratios
Gross Margin Gross Profit ÷ Revenue 23.9% 
(Operating Profit (EBIT) + Depreciation
EBITDA Margin 10.9% 
and Amortization) ÷ Revenue
Operating Margin Operating Profit (EBIT) ÷ Revenue 7.3% 
Net Margin Net Profit after Taxes ÷ Revenue 8.1% 
Liquidity Ratios
(Cash + Marketable Securities +
Quick Ratio 1.01 
Receivables) ÷ Current Liabilities
Current Ratio Current Assets ÷ Current Liabilities 1.20 
Net Working Capital to Total Assets (Current Assets − Current Liabilities) ÷
Ratio Total Assets
Working Capital Cycle
(Average Accounts Receivable ÷ Revenue)
Average Accounts Receivable Days 51.1 
× 360
(Average Inventory ÷ Cost of Goods Sold)
Average Inventory Days 31.2 
× 360
(Average Accounts Payable ÷ Cost of
Average Accounts Payable Days 68.0 
Goods Sold) × 360
(Accounts Receivable Days + Inventory
Cash Cycle (Days) 29.9 
Days) − Accounts Payable Days
Leverage Ratios
Assets to Equity Total Assets ÷ Equity 2.25 
Total Debt (Long-Term Debt + Short-Term
Debt to Equity Debt + Current Portion of Long-Term Debt) 0.12 
÷ Equity
Long-Term Debt to Total Capital Long-Term Debt ÷ (Total Debt + Equity) 6.1% 
(Total Debt − Cash and Short-Term
Net Debt to EBITDA 0.71 
Investments) ÷ EBITDA
Times Interest Earned to Interest
EBIT ÷ Cash Interest Payments 11.1 
Coverage
Efficiency Ratios
Sales ÷ Fixed Assets (Property, Plant, and
Fixed Asset Turnover 4.12 
Equipment)
Accounts Receivable Turnover Sales ÷ Accounts Receivable 7.1 
Inventory Turnover Sales ÷ Inventory 11.7 
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Tata Motors' DuPont Analysis

DuPont Ratios Formula FY 2013

Five-Part Analysis
Operating Profit Margin (A) EBIT ÷ Sales

Capital Turnover (B) Sales ÷ Invested Capital (Invested Capital = Equity + LT Debt)

Financial Cost Ratio (C) EBT ÷ EBIT

Financial Structure Ratio (D) Invested Capital ÷ Equity
Tax Effect Ratio (E) PAT ÷ EBT
ROE (A × B × C × D × E)
ROE PAT ÷ Shareholder Fund
Three-Part Analysis
Profit Margin (A) Net Income ÷ Revenue
Asset Turnover (B) Revenue ÷ Assets
Financial Leverage (C) Assets ÷ Equity
ROE (A × B × C)
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Average Revenue per Vehicle for Tata Motors and Jaguar Land Rover

FY 2016 FY 2017 FY 2018

Units Sold
Tata Motors
Passenger Cars and Utility Vehicles 129,558 160,905 219,274
Commercial Vehicles 390,953 396,097 456,552
Total 520,511 557,002 675,826
Jaguar Land Rover
Jaguar 102,106 169,284 150,484
Land Rover 441,979 365,462 394,814
Total 544,085 534,746 545,298
Tata Motors Group (Consolidated) 1,064,596 1,091,748 1,221,124
Revenue
Tata Motors (in ₹ millions) 511,314 538,624 638,564
Jaguar and Land Rover (in ₹ millions) 2,228,229 2,163,888 2,269,649
Average Revenue per Vehicle
Tata Motors (in ₹ millions)
Jaguar Land Rover (in ₹ millions)