Tata Motors misses estimate, Q4FY18 PAT declines by 50% to Rs 2,176 crore
Bloomberg poll of analysts expected net profit to come in at a much more comfortable Rs 3,748 crore in Q4FY18.
Tata Motors missed analysts estimate by seeing consolidated net profit fall to nearly half during the fourth quarter ended March 2018 result. The company witnessed net profit of Rs 2,176.16 crore down by 49.82% compared to net profit of Rs 4,336.43 crore in the corresponding period of the previous year. A Bloomberg poll of analysts expected net profit to come in at a much more comfortable Rs 3,748 crore in Q4FY18. However, Q4FY18 consolidated net profit surged by 79.17% from Rs 1,214.60 crore in the preceding quarter.
Consolidated revenue stood at Rs 91,279.09 crore during this quarter, registering growth of 15.91% from Rs 78,746.61 crore a year ago same period and also up by 23.09% from Rs 74,156.07 crore in Q3FY18.
Guenter Butschek, Tata Motors CEO & MD said, “FY18 has been a hallmark year for Tata Motors with a record breaking sales performance, increase in market share and the standalone business turning profitable before one-time exceptional charges. As we step into Turnaround 2.0, we would like to embed Turnaround thinking within TML and our business plan will continue to remain robust in terms of sale, market share and financial performance.”
For FY18, revenue came in at Rs 2,95,409.34 crore higher by 7.62% compared to Rs 2,74,492.12 crore in FY17, whereas net profit was at Rs 9,091.36 crore this fiscal up by 18.58% from Rs 7,666.56 crore in FY17.
In FY18, wholesales (including exports) grew by 17% to 636,968 units with broad based growth across the entire portfolio. In domestic market, M&HCV trucks grew by 16%, ILCV trucks more than 36%, SCV & Picks ups over 37%. Passenger vehicles were also up by 19%.
Tata Motors said, “New products in CV with SCR technology has been well received by the customers. ‘Nexon’ has met with excellent consumer response while existing portfolio of Tiago, Tigor and Hexa continued to deliver strong growths.”
Free cash flow in the quarter, was positive Rs 6,714 crore reflecting higher operating profits and favourable working capital offsetting investments in both TML (S) and JLR.
Free cash flow in the year, was negative Rs 11,191 crore reflecting higher investments, lower operating profits and unfavourable working capital. FCF of automobile business was more than Rs 8930 crore for the quarter and Rs 7330 crore for the year.
Closing net debt was Rs 39,977 crore compared to Rs 27,485 crore as at 31st March 2017, reflecting negative free cash flow at JLR with continued high investments and lower sales growth. Net Automotive debt stood at Rs 13,889 crore vs Rs 7,401 crore as at March 2017.