TATA MOTORS

Tata Motors Group (Tata Motors) is a $45 billion organisation. It is a leading global automobile

manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility

vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's largest OEMs offering an

extensive range of integrated, smart and e-mobility solutions

Part of the USD100 billion Tata group founded by Jamsetji Tata in 1868, Tata Motors is

among the world’s leading manufacturers of automobiles. Believing in ‘Connecting

aspirations’, by offering innovative mobility solutions that are in line with customers'

aspirations. TATA MOTORS are India's largest automobile manufacturer, and continue to

take the lead in shaping the Indian commercial vehicle landscape, with the introduction of

leading-edge powertrains and electric solutions packaged for power performances and user

comfort at the lowest life-cycle costs. Their new passenger cars and utility vehicles are based

on Impact Design and offer a superior blend of performance, driveability and connectivity.

The focus on connecting aspirations and our pipeline of tech-enabled products keeps them at

the forefront of the market. They have identified six key mobility drivers that will lead them

into the future – modular architecture, complexity reduction in manufacturing, connected &

autonomous vehicles, clean drivelines, shared mobility, and low total cost of ownership. Sub-
brand TAMO is an incubating centre of innovation that will spark new mobility solutions

through new technologies, business models and partnerships.

MISSION

We innovate mobility solutions with passion to enhance the quality of life

VISION

By FY 2024, we will become the most aspirational Indian auto brand, consistently winning, by

 Delivering superior financial returns

 Driving sustainable mobility solutions

 Exceeding customer expectations, and

 Creating a highly engaged work force

VALUES
 Integrity

 Teamwork

 Accountability

 Customer focus

 Excellence

 Speed
Leadership

Guenter Karl Butschek is the current CEO and Managing Director of Tata Motors Worldwide. Apart

from managing Tata Motors' India business, Butschek is also responsible for all other domestic and

overseas subsidiaries, joint ventures and associates of Tata Motors.

Subsidiaries

 Jaguar Land Rover Automotive Plc www.jaguarlandrover.com

Jaguar Land Rover brings together two prestigious British car brands. Tata Motors acquired the

brands from Ford in 2008, merging them into a single company in 2013. One of the world’s leading

premium car brands, Jaguar Land Rover presents the future of sustainable mobility.

 Tata Motors European Technical Centre PLC (TMETC) www.tmetc.com

Based in Coventry, UK, Tata Motors European Technical Centre PLC (TMETC) is a wholly owned

subsidiary of Tata Motors. As a centre of excellence for automotive design and engineering, TMETC

is an active partner in a number of collaborative projects in low carbon technology, and electric and

hybrid vehicle technology for future passenger and light commercial vehicles.

 Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL)

 www.tatamotorsinsurancebrokers.com

A wholly owned subsidiary of Tata Motors, TMIBASL provides end-to-end insurance solutions in the

retail sector with a focus on the automobile sector. TMIBASL offers services to various OEMs in the

passenger vehicle, commercial and construction equipment markets, including to us.

 TMF Holdings Limited  www.tmf.co.in

TMF Holdings Limited (TMFHL) - a wholly owned subsidiary of the Company is the vehicle-

financing arm under the brand "TMF Holdings Limited".

  TML Distribution Company Limited (TDCL)

 TML Distribution Company Limited, or TDCL, our wholly owned subsidiary, incorporated on March

28, 2008. TDCL provides distribution and logistics support for distribution of our products throughout

India.

 TRILIX Srl

 Trilix Srl, founded in 2006, is a mid-sized commercial art and graphic design company, located in

Nichelino, Italy.

 Tata Technologies Limited  www.tatatechnologies.com/us/

A global leader in engineering services outsourcing and product development IT services to the global

manufacturing industries, Tata Technologies is a company of innovators, specialists in the design

engineering space, who apply cutting-edge technologies to provide competitive advantage to

customers in the manufacturing sector. The company headquartered in Singapore.

 Tata Marcopolo Motors Limited (TMML)

 Tata Marcopolo Motors Limited (TMML) is a 51:49 joint venture company of Tata Motors Ltd.

(TML) India and Marcopolo S.A. Brazil for manufacturing of buses in India.

 TML Holdings Pte. Limited

 TML Holdings Pte. Limited is a 100% subsidiary of Tata Motors with effect from 2008.

 Tata Daewoo Commercial Vehicle Company Limited

 www.tata-daewoo.com

Since its inception in 2004, Tata Daewoo Commercial Vehicle has established a solid foothold in the

industry as one of the nation has most reputed truck makers. Today, it exports its products to more

than 60 countries. Tata Daewoo has worked with Tata Motors, its parent company to develop a

medium and long-term plan to grow into a global market leader.

Products

 Cars & Sports Utility Vehicles

 Trucks & Buses

 Defence

Key Financial Analysis As per 2018-2019 reports.

TATA MOTORS Income Statement Analysis

 Operating income during the year rose 3.6% on a year-on-year (YoY) basis.

 The company is operating profit decreased by 21.6% YoY during the fiscal. Operating profit

margins witnessed a fall and stood at 8.2% in FY19 as against 10.8% in FY18.

 Depreciation charges increased by 9.5% and finance costs increased by 23.0% YoY,

respectively.

 Other income declined by 25.1% YoY.

 Net profit for the year declined by 416.0% YoY.

 Net profit margins during the year declined from 3.1% in FY18 to 9.4% in FY19.
TATA MOTORS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Net Sales Rs m 2,915,505 3,019,384 3.6%

Other income Rs m 39,576 29,653 -25.1%

Total Revenues Rs m 2,955,081 3,049,037 3.2%

Gross profit Rs m 314,577 246,643 -21.6%

Depreciation Rs m 215,536 235,906 9.5%

Interest Rs m 46,818 57,586 23.0%

Profit before tax Rs m 91,799 -17,196 -118.7%

Tax Rs m 43,419 -24,375 -156.1%

Profit after tax Rs m 90,914 -287,242 -416.0%

Gross profit margin % 10.8 8.2

Effective tax rate % 47.3 141.7

Net profit margin % 3.1 -9.4

*ResultsConsolidated

Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

TATA MOTORS Balance Sheet Analysis

 The company's current liabilities during FY19 stood at Rs 1,455 billion as compared to Rs

1,432 billion in FY18, thereby witnessing an increase of 1.6%.

 Long-term debt stood at Rs 710 billion as compared to Rs 612 billion during FY18, a growth

of 16.0%.
  Current assets fell 9% and stood at Rs 1,234 billion, while fixed assets fell 11% and stood at

Rs 1,479 billion in FY19.

 Overall, the total assets and liabilities for FY19 stood at Rs 3,072 billion as against Rs 3,314

billion during FY18, thereby witnessing a fall of 7%.

TATA MOTORS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Net worth Rs m 954,279 601,796 -36.9

Current Liabilities Rs m 1,432,195 1,454,574 1.6

Long-term Debt Rs m 611,995 709,737 16.0

Total Liabilities Rs m 3,313,505 3,071,945 -7.3

Current assets Rs m 1,359,728 1,234,312 -9.2

Fixed Assets Rs m 1,663,353 1,478,617 -11.1

Total Assets Rs m 3,313,505 3,071,945 -7.3

*ResultsConsolidated

Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

TATA MOTORS Cash Flow Statement Analysis

 TATA MOTORS's cash flow from operating activities (CFO) during FY19 stood at Rs 189

billion on a YoY basis.

 Cash flow from investing activities (CFI) during FY19 stood at Rs -197 billion on a YoY

basis.
  Cash flow from financial activities (CFF) during FY19 stood at Rs 88 billion, an

improvement of 339% on a YoY basis.

 Overall, net cash flows for the company during FY19 stood at Rs 68 billion from the Rs 7

billion net cash flows seen during FY18.

TATA MOTORS Cash Flow Statement 2018-19

No. of
12 12
months
%
Particulars
Change
Year
Mar-18 Mar-19
Ending

Cash Flow from Operating

Rs m 238,574 188,908 -20.8%
Activities

Cash Flow from Investing - -

Rs m -
Activities 262,016 197,111

Cash Flow from Financing

Rs m 20,117 88,304 338.9%
Activities

Net Cash Flow Rs m 7,300 68,431 837.4%

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

Current Valuations for TATA MOTORS

 The trailing twelve-month earnings per share (EPS) of the company stands at Rs -99.5, an

decline from the EPS of Rs 31.5 recorded last year.

 The price to earnings (P/E) ratio, at the current price of Rs 164.1, stands at -1.6 times its

trailing twelve months earnings.

 The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price

to sales ratio stands at 0.2 times.

  The company's price to cash flow (P/CF) ratio stood at -8.9 times its end-of-year operating

cash flow earnings.

Per Share Data/Valuations

12 Mar- 12 Mar-
No. of Mths Year Ending
18* 19*

Sales per share (Unadj.) Rs 1,009.6 1,045.6

TTM Earnings per share Rs 31.5 -99.5

Diluted earnings per share Rs 31.5 -99.5

Price to Cash Flow x 1.7 -8.9

TTM P/E ratio x -1.6 -1.6

Price / Book Value ratio x 1.2 1.2

Market Cap Rs m 473,895 473,790

Dividends per share

Rs 0.0 0.0
(Unadj.)

*ResultsConsolidated

Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

Ratio Analysis for TATA MOTORS

 Solvency Ratios

Current Ratio: The Company’s current ratio deteriorated and stood at 0.8x during FY19,

from 0.9x during FY18. The current ratio measures the company's ability to pay short-term

and long-term obligations.

 Interest Coverage Ratio: The Company’s interest coverage ratio deteriorated and stood at

0.7x during FY19, from 3.0x during FY18. The interest coverage ratio of a company states

how easily a company can pay its interest expense on outstanding debt. A higher ratio is

preferable.

 Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -47.7% during

FY19, from 9.5% during FY19. The ROE measures the ability of a firm to generate profits

from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at

-19.4% during FY19, from 11.6% during FY18. The ROCE measures the ability of a firm to

generate profits from its total capital (shareholder capital plus debt capital) employed in the

company.

Return on Assets (ROA): The ROA of the company declined and down at -7.5% during

FY19, from 4.2% during FY18. The ROA measures how efficiently the company uses its

assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*

Current ratio x 0.9 0.8

Debtors’ Days Days 25 23

Interest coverage x 3.0 0.7

Debt to equity ratio x 0.6 1.2

Return on assets % 4.2 -7.5

Return on equity % 9.5 -47.7

Return on capital employed % 11.6 -19.4

* Results Consolidated

Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

TATA MOTORS Share Price Performance

Over the last one year, TATA MOTORS share price has moved down from Rs 261.5 to Rs

164.1, registering a loss of Rs 97.4 or around 37.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,169.6 (down 0.2%). Over the last

one year, it has moved down from 24,364.2 to 18,169.6, a loss of 6,195 points (down 25.4%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

(To know more, check out historical annual results for TATA MOTORS and quarterly results

for TATA MOTORS)