CIA-III

INTRODUCTION TO BUSINESS ANALYTICS

(BBH354)

SUBMITTED BY SUBMITTED TO
B.SHRUTI(2224248) Dr HARIHARAN R
ASHISH MISHRA(2224209) (Assistant Professor)
ROUNAK AGARWAL(2224231)
ANU MEHTA(2224206)
OM ITANKAR(2224225)

DEPARTMENT OF BUSINESS AND MANAGEMENT

CHRIST(DEEMED TO BE UNIVERSITY)YESHWANTPUR
COMPANY

Tata Motors, a cornerstone of India's automobile enterprise, boasts a storied legacy dating back to its founding
in 1945 as Tata Engineering and Locomotive Co. Ltd. Over the years, it has evolved into a international car
giant, finally rebranded as Tata Motors in 2003. As a vital subsidiary of the Tata Group, one in every of India's
largest and most different conglomerates, Tata Motors instructions a extensive global presence. Beyond its
Mumbai headquarters, the enterprise operates in several international locations, both via subsidiaries and
export projects. Its product portfolio is equally expansive, encompassing a various array of vehicles, such as
passenger cars, commercial vehicles, trucks, buses, and electric cars (EVs). Known for his or her robustness,
fuel performance, and flexibility to various functions, Tata Motors' industrial cars maintain a distinguished
function inside the marketplace.
 YEAR REVENUE NET PROFIT
DATA 2013 1,87,652.84 9,862.49
2014 2,30,677.10 14,104.18
2015 2,60,734.33 14,059.65
2016 2,73,045.60 11,100.72
2017 2,65,498.47 6,063.56
2018 2,88,596.09 6,813.10
2019 2,99,190.59 -28,933.70
2020 2,58,594.36 -10,975.23
2021 2,46,972.17 -13,016.14
2022 2,75,235.23 -11,234.70
2023 3,42,874.59 2,353.49

THE DATA ABOVE REPRESENTS THE NET SALES AND NET PROFIT/LOSS OF TATA MOTORS
OF LAST TEN YEARS(2013-23)

DATA SUMMARY

➢ From 2013 to 2016, Tata Motors experienced regular increase in net sales and internet
income. Both revenue and profit elevated at some stage in those years.
➢ In 2017 and 2018, at the same time as net income endured to upward push, the rate of
income boom slowed down.
➢ In 2019 to 2022, Tata Motors reported losses notwithstanding growing net sales. This shows
that the business enterprise's prices and other economic obligations exceeded its revenue at
some point of those years, ensuing in bad net income.
➢ In 2023, the company is back to profitability with a positive net profit, even though internet
sales expanded.
GRAPH FOR NET SALES AND PROFIT OF TATA MOTORS FROM 2013 TO 2023

NET SALES ( IN Cr)

4,00,000.00
3,50,000.00
3,00,000.00
2,50,000.00
2,00,000.00
1,50,000.00
1,00,000.00
50,000.00
0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The above graph shows the net sales of TATA Motors from 2013 to 2023 showing the growth and fall of sales
in the form of a line graph with the trend line, making the graph easy to understand.

PROFIT (IN Cr)

20,000.00

10,000.00

0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-10,000.00

-20,000.00

-30,000.00

-40,000.00

profit (in cr) Linear (profit (in cr))

The above graph shows the profit of Tata Motors from 2013 to 2023 showing the growth and the fall in the
profits of Tata Motors in the form of a line graph with the trend line, making the graph easy to understand as
it can be clearly understood that the company became negative in 2019.
BUSINESS PROBLEM

TATA MOTORS's revenue increased steadily from 2013 to 23 but the company is unable to turn a sizable
profit out of it; even from 2016 to 2019, the company is experiencing losses.

SOLUTION FOR THE PROBLEM

Addressing a situation where a organisation like Tata Motors is experiencing constant sales boom but is unable
to turn a vast earnings calls for a complete method. Several factors could contribute to this hassle and
addressing them will likely involve a combination of techniques. Here are some ability solutions:

➢ COST MANAGEMENT:

Analyse and optimize the enterprise's cost structure to reduce pointless fees. Implement price manipulate
measures for the duration of the corporation. Evaluate and renegotiate provider contracts to get higher phrases
and pricing.

➢ PRODUCT PORTFOLIO AND MARKET FOCUS:

Review the product portfolio and awareness on high-margin merchandise or segments. Assess the aggressive
panorama and perceive areas where Tata Motors can benefit a aggressive benefit. Consider expanding into
new markets or niches wherein profitability may be higher.

➢ OPERATIONAL EFFICIENCY:

Streamline manufacturing methods to improve performance and decrease manufacturing prices. Invest in
automation and technology to enhance productivity. Optimize the supply chain to decrease stock sporting
expenses and decrease lead instances.

➢ QUALITY AND INNOVATION:

Invest in studies and development to innovate and differentiate products. Emphasize exceptional manipulate
to lessen guarantee and restore costs. Listen to client remarks to improve product functions and layout.

➢ PRICING STRATEGY:

Reevaluate pricing strategies to ensure they replicate the fee presented via the products. Consider dynamic
pricing primarily based on marketplace situations and demand.
STATISTICAL TOOLS USED

➢ Average: determines a collection of numbers' averages.

➢ Median: determines the middle value, or median, of a set of integers.
➢ Sum: computes the total of a set of numbers.
➢ Maximum: the highest value in a range is returned.
➢ Minimum: the lowest value in a range is returned.
➢ Count: determines how many cells in a range contain numbers.
➢ Variance: determines the variation of a set of integers
➢ Standard deviation: determines a range of numbers' standard deviation.

STATISTICAL TOOLS REVENUE NET PROFIT

SUM 2929071.37 197.2

MINIMUM 187652.84 -28933.70
MAXIMUM 342874.59 14104.18

AVERAGE 266279.22 17.95

MEDIAN 265498.47 6063.56

MEAN 266279.22 17.95

COUNT 11 11

INTERPRETATION

• The mean of net sales of the company is 266279.22cr and the mean profit of the company is 17.95 which
means that the company has done a good amount of sales but the mean profit of Tata Motors is very low.
• The median of Tata Motors is 265498.47cr and the median profit of Tata Motors is 6063.56cr.
• The total sales of Tata Motors from 2013 to 2023 is 2929071.37cr and the total profit that Tata Motor has
done from 2013 to 2023 is 197.42cr
• The minimum sales value that Tata Motors has done from 2013 to 2023 is 187652.84cr in the year 2013
and the minimum profit that Tata Motors has done from 2013 to 2023 is -28933cr in the year 2019.
• The Maximum sales value that Tata Motors has done from 2013 to 2023 is 342874.59cr in the year 2023
and the minimum profit that Tata Motors has done from 2013 to 2023 is 14104.18cr in the year 2015.
• The total number of net sales and profit are for 11 years as shown in the count box which is from 2013 to
2023.
 REGRESSION ANALYSIS

Regression Statistics
Multiple R 0.204075886
R Square 0.041646967
Adjusted R Square -0.078147162
Standard Error 14896.78597
Observations 10

ANOVA
Significance
df SS MS F F
Regression 1 77149480.04 77149480.04 0.347654493 0.571715901
Residual 8 1775313859 221914232.3
Total 9 1852463339

Standard Lower
Coefficients Error t Stat P-value Lower 95% Upper 95% 95.0%
- -
Intercept 24869.11381 44069.73552 0.564312754 0.588009053 76755.87855 126494.1062 76755.87855
- - - -
187652.84 0.094241797 0.159834171 0.589622331 0.571715901 0.462820057 0.274336464 0.462820057

RESIDUAL
OUTPUT

Predicted Standard
Observation 9862.49 Residuals Residuals
1 3129.68942 10974.49058 0.781390367
2 297.0420582 13762.60794 0.97990601
3 -863.1941475 11963.91415 0.851837924
4 -151.9390556 6215.499056 0.442547292
5 -2328.700266 9141.800266 0.650901708
6 -3327.144982 -25606.55502 -1.823202206
7 498.7166761 -11473.94668 -0.816951943
8 1594.012744 -14610.15274 -1.040251712
9 -1069.548813 -10165.15119 -0.723764913
10 -7444.003634 9797.493634 0.697587473
 187652.84 RESIDUAL PLOT
20000

10000
RESIDUALS

0
0.00 50,000.00 1,00,000.00 1,50,000.00 2,00,000.00 2,50,000.00 3,00,000.00 3,50,000.00 4,00,000.00
-10000

-20000

-30000
187652.84

187652.84 LINE FIT PLOT

Series1 Predicted 9862.49

20,000.00
10,000.00
0.00
9862.49

0.00 50,000.00 1,00,000.00 1,50,000.00 2,00,000.00 2,50,000.00 3,00,000.00 3,50,000.00 4,00,000.00

-10,000.00
-20,000.00
-30,000.00
-40,000.00
187652.84
INTERPRETATION OF REGRESSION ANALYSIS

Multiple R 0.204075886
R Square 0.041646967
F-Test 0.347654493
Significance F 0.571715901

EQUATION

y=c+bx

y=Net Profit (Dependent variable)

x=Revenue (Independent variable)

y=24869.11+0.09x

HYPOTHESIS

Assumption

H1-Data is correlated.

H0-Date is not correlated.

By F-test we can observe that 0.3476 is below 205(1% LOS) therefore the nil-hypothesis is rejected the is
highly correlated.
TIME SERIES ANALYSIS

Moving Average of net sales and profits of Tata Motors from 2013 to 2023

YEAR NET SALES ( PROFIT 3 YEAR MOVING 3 YEAR MOVING

IN CR) (IN CR) AVERAGE OF NET AVERAGE OF
SALES PROFITS
2013 1,87,652.84 9,862.49 #N/A #N/A
2014 2,30,677.10 14,104.18 #N/A #N/A
2015 2,60,734.33 14,059.65 2,26,354.76 12,675.44
2016 2,73,045.60 11,100.72 2,54,819.01 13,088.18
2017 2,65,498.47 6,063.56 2,66,426.13 10,407.98
2018 2,88,596.09 6,813.10 2,75,713.39 7,992.46
2019 2,99,190.59 -28,933.70 2,84,428.38 -5,352.35
2020 2,58,594.36 -10,975.23 2,82,127.01 -11,031.94
2021 2,46,972.17 -13,016.14 2,68,252.37 -17,641.69
2022 2,75,235.23 -11,234.70 2,60,267.25 -11,742.02
2023 3,42,874.59 2,353.49 2,88,360.66 -7,299.12

The above table shows the 3-year moving average of net sales and profits from 2013 to 2023.

3 year moving average of net sales

4,00,000.00

3,00,000.00

2,00,000.00

1,00,000.00

0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

net sales ( in cr)

3 year Moving average of net sales
Linear (3 year Moving average of net sales)

The above graph shows the net sales and the 3-year moving sales of Tata Motors from 2013 to 2023.
 3 years moving average of profit
30,000.00

20,000.00

10,000.00

0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-10,000.00

-20,000.00

-30,000.00

-40,000.00

profit (in cr) 3 year Moving average of profits Linear (3 year Moving average of profits )

The above graph shows the net profit and the 3-year moving profit of Tata Motors from 2013 to 2023 in the
form of a line graph along with the trend line.

3 year moving average of net sales and profit of tata motors

4,00,000.00
3,00,000.00
2,00,000.00
1,00,000.00
0.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-1,00,000.00

net sales ( in cr) profit (in cr)

3 year Moving average of net sales 3 year Moving average of profits

The above graph shows the net sales and net profit along with 3-year moving averages of net sales and profit
of Tata Motors from 2013 to 2023 in the same graph.
5 YEAR FORECAST OF SALES OF TATA MOTORS

year net sales ( in cr) Forecast(net sales ( in cr)) Lower Confidence Bound(net sales ( in cr)) Upper Confidence Bound(net sales ( in cr))
2013 1,87,652.84
2014 2,30,677.10
2015 2,60,734.33
2016 2,73,045.60
2017 2,65,498.47
2018 2,88,596.09
2019 2,99,190.59
2020 2,58,594.36
2021 2,46,972.17
2022 2,75,235.23
2023 3,42,874.59 3,42,874.59 3,42,874.59 3,42,874.59
2024 3,51,218.63 2,74,475.44 4,27,961.82
2025 3,59,562.67 2,73,726.83 4,45,398.51
2026 3,67,906.71 2,73,821.78 4,61,991.64
2027 3,76,250.75 2,74,554.76 4,77,946.74
2028 3,84,594.79 2,75,791.73 4,93,397.85

600000

500000

400000

300000

200000

100000

0
year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

net sales ( in cr) Forecast(net sales ( in cr))

Lower Confidence Bound(net sales ( in cr)) Upper Confidence Bound(net sales ( in cr))

The above table and graph show the 5-year forecast of the sales of Tata Motors by showing the forecasted
price, lower confidence bound, and upper confidence bound.
5-YEAR FORECAST OF PROFIT OF TATA MOTORS

year profit (in cr) Forecast(profit (in cr)) Lower Confidence Bound(profit (in cr)) Upper Confidence Bound(profit (in cr))
2013 9,862.49
2014 14,104.18
2015 14,059.65
2016 11,100.72
2017 6,063.56
2018 6,813.10
2019 -28,933.70
2020 -10,975.23
2021 -13,016.14
2022 -11,234.70
2023 2,353.49 2,353.49 2,353.49 2,353.49
2024 -19,742.54 -41,000.99 1,515.90
2025 -22,423.28 -43,681.82 -1,164.74
2026 -25,104.03 -46,362.74 -3,845.32
2027 -27,784.77 -49,043.74 -6,525.79
2028 -30,465.51 -51,724.87 -9,206.15

20,000.00

10,000.00

0.00

-10,000.00

-20,000.00

-30,000.00

-40,000.00

-50,000.00

-60,000.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

profit (in cr) Forecast(profit (in cr))

Lower Confidence Bound(profit (in cr)) Upper Confidence Bound(profit (in cr))

The above table and graph show the 5-year forecast of the profit of Tata Motors by showing the forecasted
price, lower confidence bound, and upper confidence bound.
INTERPRETATION OF TIME SERIES ANALYSIS

• From the table we can see that the net sales of Tata Motors rose continuously from 2013 to 2016 and then
the net sales decreased in the year 2016 but again started to rise from the next year but again showed a fall
in sales from 2019 to 2022 because of covid 19 but the company stated to show profit in 2023.
• From the profit we can see that the profit of the company rose from 2013 to 2015 but the profit started to
fall from 2016 to 2022 and the company was even negative from in the year 2019 to 2022 which mean the
company was making no profit in those year. But the company made a comeback and again became
profitable in 2023 as they earned 2533cr profit.
• From the 3-year moving average net sales graph we can see the moving average line was below the net
sales till 2019 but it crossed the net sales line in 2019 till 2022 which shows that the company did not
perform as the company was expected to perform.
• From the 3-year moving average profit graph we can see that the moving average of the company starts to
fall as the company starts to make a loss, but the moving average line was over the profit line because the
expected loss was not tata much, but it got below the profit when the company made a huge loss in the
year 2019. But the gain rose in 2023 which is good for the company.
• Tata Motors made a good profit from 2013 to 2015 but the profit decreased from 205 to 2108 finally in
2019 the company made a loss, and the profit became negative which means that the company was making
a loss. In 2023 the company made a comeback and again started to show profits which also led to an
increase in the stock price of the company.
• From the 5-year sales forecast we can see that the company will show increasing sales in the next 5 years
if everything goes right the company can come to sales of 384594cr but if things do not go right then the
company can see the results of lower confidence bound and some this big happen then the company can
see upper confidence bound.
• From the 5-year profit forecast we can see that the company will show a decrease in the profit for the next
5 years if everything goes as per the forecast the company can come to a profit of -30465cr but if things
do not go right then the company can see the results of lower confidence bound and some this big happen
then the company can see upper confidence bound.
CONCLUSION

Tata Motors has witnessed a steady growth in its sales over the last decade, with a great upswing from 2013
to 2016. However, the company has faced a good-sized mission in translating its growing sales into vast
income, in particular evident all through the duration from 2019 to 2022 while it said losses no matter
increased sales. The evaluation exhibits that Tata Motors desires to cope with its cost structure, optimize
operational performance, and probably reevaluate its product portfolio to decorate profitability. While the 5-
yr sales forecast indicates capacity for boom, it additionally underscores the importance of prudent economic
management, given the uncertainties indicated by using the lower and higher self-belief bounds. To stable a
greater worthwhile future, Tata Motors must keep its efforts in price control, product innovation, and
marketplace expansion, even as remaining vigilant to market dynamics and adapting as wished.

REFERENCES

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https://www.tatamotors.com/

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https://www.investopedia.com/terms/s/statistics.asp

➢ Moneycontrol. (n.d.).

https://www.moneycontrol.com/

➢ Invest in Stocks: Explore LIVE NSE/BSE on Groww. (n.d.). Groww.

https://groww.in/stocks/user/explore

➢ India, N. (n.d.). NSE - National Stock Exchange of India Ltd: Live Share/Stock Market News & Updates,
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https://www.nseindia.com/