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79
CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
increase mainly relates to normal yearly increments,
performance based payments, impact of wage revisions and
partly due to increased volumes. Jaguar Land Rover increased
the permanent and agency head count to support the
volume increases.
Manufacturing and Other Expenses
include works
operation, indirect manufacturing expenses, freight cost,
fixed marketing costs and other administrative costs. These
expenses have increased to
`
28,453.97 crores from
`
21,703.09
crores in FY 2010-11. The breakup is given below-
(
`
in crores)
FY 2011-12 FY 2010-11
Processing charges
1,539.14 1,172.48
Consumption of stores and spare parts 1,217.24 1,189.24
Freight, transportation, port
3,734.55 2,436.93
charges, etc.
Repairs to buildings
101.51 69.85
Repairs to plant, machinery, etc.
175.42 228.45
Power and fuel
1,017.19 851.60
Rent
128.84 104.72
Rates and taxes
259.15 193.56
Insurance
227.18 161.71
Publicity
5,389.40 4,089.95
Works operation and other expenses 14,538.55 11,065.55
Excise Duty on change in Stock-in-trade 116.80 139.05
Manufacturing and Other Expenses 28,453.97 21,703.09
The increases are mainly driven by volumes, size of operations
and also include inflation impact. In terms of net revenue,
these decreased from 17.8% to 17.2% in the current year. The
publicity expenses have increased mainly on account of new
product introductions both at Tata Motors and Jaguar Land
Rover. The works operation and other expenses during the
current year have come down to 8.8% from9.1%of net revenue.
The group continues to contain costs at all levels.
Amount capitalised represents
expenditure transferred to
capital and other accounts allocated out of employee cost and
other expenses incurred in connection with product
development projects and other capital items. This increased
to
`
8,265.98 crores from
`
5,741.25 crores of FY 2010-11, mainly
on account of various product development projects
undertaken by the Company and Jaguar Land Rover.
Other Income
increased to
`
661.77 crores from
`
429.46 crores
in FY 2010-11 and mainly includes interest income of
`
487.64
crores (FY 2010-11
`
339.85 crores). The increase is attributable
to attributable to return on surplus cash invested by Jaguar
Land Rover.
Profit before Exceptional Item, Depreciation and
amortisation, Interest and Tax
has increased from
`
18,244.49 crores in FY 2010-11 to
`
24,362.24 crores in
FY 2011-12 and represents 14.7% of net revenue for the current
as compared to 14.9% for last year.
Depreciation and Amortization (including product
development / engineering expenses written off):
During
FY 2011-12, expenditure increased by 24.1% to
`
7,014.61
crores from
`
5,653.06 crores in FY 2010-11. The increase in
depreciation of
`
177.34 crores is on account of plant and
equipment (mainly towards capacity and new products)
installed in last year, the full effect of which is reflected in the
current year. The amortization expenses have gone up from
`
1,483.71 crores in FY 2010-11 to
`
2,276.24 crores in FY 2011-
12, attributable to new products introduced during the last
year. The expenditure on product development / engineering
cost has increased by
`
391.68 crores.
Finance cost
increased by 25.0% to
`
2,982.22 crores from
`
2,385.27 crores of FY 2010-11. During the year Jaguar Land
Rover raised GB£ 1,500 million with coupon rate ranging from
7.75% to 8.25% for different maturities.The increase in finance
cost relates to recognition of amortised debt issue cost
expensed upon prepayment of high debt cost.
Exceptional Items
(
`
in crores)
FY 2011-12 FY 2010-11 Change
Exchange loss / (gain)
(net) including on
revaluation of foreign
currency borrowings,
deposits and loans
654.11
(231.01)
885.12
Goodwill Impairment
and other costs
177.43
-
177.43
Total
831.54
(231.01)
1,062.55
FINANCIAL HIGHLIGHTS (32-45)