Basic HTML Version
Directors’ Report
55
CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
DIVIDEND
Considering the Company’s financial performance, the Directors recommended a dividend of
`
4/- per share (200%) on the capital of 2,70,77,31,241 Ordinary Shares of
`
2/- each (previous
year:
`
20/- per share (200%) on share of face value of
`
10/- each) and
`
4.10 per share (205%)
on 48,19,59,190 ‘A’ Ordinary Shares of
`
2/- each (previous year:
`
20.50 per share (205%) on
share of face value of
`
10/- each) fully paid-up for FY 2011-12 and will be paid on or after
August 14, 2012. The said dividend, if approved by the Members, would involve a cash outflow
of
`
1,464 crores (previous year:
`
1,466 crores) including dividend distribution tax resulting in
a payout of 118% (previous year: 81%) of the standalone profits for the year and 11% (previous
year: 16%) of the consolidated profits of the Company.
SUB-DIVISION OF SHARES
As a step towards better liquidity and increased investor participation, the Company undertook
a sub-division of face value of its Ordinary Shares and ‘A’ Ordinary Shares (collectively “the
Shares”) from
`
10/- to
`
2/- per share with effect from the Record Date i.e. September 13,
2011. New ISINs - INE155A01022 for Ordinary Shares and IN9155A01020 for ‘A’ Ordinary
Shares have been obtained from the Depository. Consequently, the sub-divided Shares were
credited to the respective depository accounts of Members holding shares in electronic form
and new share certificates were issued to Members holding Shares in physical form.
OPERATING RESULTS AND PROFITS
Global markets had a mixed year with the US showing recovery, European countries continue
to face a crisis, while Asia, China in particular, continued on a healthy growth trajectory.
After a strong performance in FY 2010-11, the Indian economy showed signs of slowdown
in FY 2011-12, due to inflationary pressures. Measures taken to arrest inflation adversely
impacted growth which dropped to 6.9% from 8.6% in the previous financial year. The year
alsowitnessed a sharp deceleration inmanufacturing activitymainly due tomonetary tightening,
weak external demand and lack of investment activity. The Indian automotive industry continued
to grow, albeit at a reduced rate of 7.2%. The
Tata Motors Group
took cognizance
of the global development and planned market actions accordingly. The Tata Motors Group
recorded a 35.0% overall growth in gross turnover from
`
1,26,414 crores in FY 2010-11
to
`
170,678 crores in FY 2011-12. This is the highest turnover recorded by the Group. The
consolidated revenues (net of excise) for FY 2011-12, of
`
165,654 crores grew by of 35.6% over
last year on the back of strong growth in volumes across products andmarkets. The consolidated
EBITDA margins for FY 2011-12 stood at 14.3%. Consequently, Profit Before Tax and Profit
After Tax were
`
13,534 crores and
`
13,517 crores, respectively. During the year Jaguar Land
Rover accounted for credit of GB£ 225million (
`
1,794 crores) in respect of carried forward past
losses in view of certainity of utilising the losses against future profits.
Tata Motors
recorded a gross turnover of
`
59,221 crores, a growth of 15.7%, from
`
51,184
crores in the previous year. Cost reduction and value engineering continue to be areas of focus
to improve operational efficiency. However, the increase in commodity prices globally put
Highest ever
Units Sold
12,69,483 ( 18%)
Gross Revenues
`
170,678 Crores ( 35%)
Profit After Tax
`
13,517 Crores ( 46%)
FINANCIAL HIGHLIGHTS (32-45)