Statutory Reports
Corporate Overview
69th Annual Report 2013-14
54
Financial Statements
DIVIDEND
Considering the Company’s financial performance, the Directors
have recommended a dividend of
`
2/- per share (100%) on the
capital of 2,736,713,122 Ordinary Shares of
`
2/- each and
`
2.10
per share (105%) on 481,966,945 ‘A’ Ordinary Shares of
`
2/- each
for FY 2013-14 (same as for FY 2012-13) and the same will be paid
on or after August 1, 2014. The said dividend, if approved by the
Members, would involve a cash outflow of
`
742 crores (previous
year:
`
728 crores) including dividend distribution tax, resulting in
a payout of 222% (FY 2012-13: 241%) of the standalone profits for
the year and 5% (previous year: 7%) of the consolidated profits of
the Company.
OPERATING RESULTS AND PROFITS
The Global operating environment improved considerably in FY
2013-14, as economic activity strengthened and spending in most
economiesbegan to recover, however ina sporadicmanner.Whilst the
advanced economies, particularly the US and UK, led the rebound, as
growth became broader and more entrenched, Europe saw the first
tentative signs of recovery after a long and painful slowdown. India’s
economic growth rate in the current financial year remained weak at
4.7% (Previous Year: at 4.5%). The Industrial activity remained weak
and the stagnation was broad based. Mining and manufacturing
output remained negative and the economy witnessed decline in
investment in new projects in line with slowdown in overall growth.
FY 2013-14 was a challenging year for the Company as the Indian
economy continued to be under severe stress.
The
Tata Motors Group
recorded a 22.2% growth in
gross turnover from
`
193,698 crores in the previous year to
`
236,626 crores in FY 2013-14. This is the highest turnover recorded
by the Group. The consolidated revenues (net of excise) for
FY 2013-14 of
`
232,834 crores grew by 23.3% over last year on the
back of strong growth in volumes across products and markets at
Jaguar Land Rover. The consolidated EBITDA margins for FY 2013-14
stood at 16.1%. Consequently, Profit Before Tax and Profit After Tax
were
`
18,869 crores and
`
13,991 crores, respectively.
Tata Motors Limited
recorded a gross turnover of
`
37,758 crores,
23.4% lower from
`
49,320 crores in the previous year. On top of
a 16.7% decline in FY 2012-13, a decline of more than 40% over a
2 year period was witnessed. Sustained deceleration in the economic
growth,highinflation,higherfuelprices,reducedavailabilityoffinanceand
elevated interest rate regime continued to impact demand for the Indian
auto industry in general and commercial vehicle industry in particular.
Additionally, the need to increase marketing expenses on account of
severe competitive intensity and depressed market scenario impacted
EBITDAmargins frompositive 4.8% in FY 2012-13 to negative 1.4% for FY
2013-14. The reduction of profits fromoperations was offset by dividend
fromsubsidiary companies of
`
1,574 crores (includingdividend fromJLR)
as compared to
`
1,584 crores for the previous year and profit of
`
1,966 crores on divestment of investments in certain foreign
subsidiaries to TML Holdings Pte Ltd, Singapore, a wholly owned
subsidiary. Loss Before Tax and Profit After Tax for the FY 2013-14 were
at
`
1,026 crores and
`
335 crores respectively, as compared to Profit
BeforeTax and Profit AfterTax of
`
175 crores and
`
302 crores respectively
in FY 2012-13.
With the expected positive momentum in the Indian economy, the
Company is focused on growth and achieving profitability through
a superior new product pipeline along with a renewed commitment
to enhance quality and customer service and to reduce costs. The
Horizonext strategy unveiled in the Delhi Auto Expo shed light on
some of the new and exciting product initiatives like Zest, Bolt,
improved Nano, Ultra trucks variants on Prima truck platform and
a slew of other modified and refreshed products which will be
introduced in the near future, boosting the Company’s revenues.
Investment in the right products and vehicle platforms are being
made to ensure a competitive pipeline for the future. Together
with forward looking product strategy, the Company is also
focusing extensively on right sizing the business and operational
improvements through various strategic projects for operational
excellence and cost cutting initiatives.
Jaguar Land Rover
recorded a turnover of GB£19,386 million, a
growth of 22.8% from GB£15,784 million in the previous year. JLR
had a successful year of continued growth in all markets with overall
volumes up by 16%, reflecting continued product successes including
the launch of the new Range Rover Sport and Jaguar F-TYPE and a
full year of sales of the new Range Rover. More established models
have also been performing well, in particular derivatives such as the
XF Sportbrake and all-wheel drive and smaller engine options across
the range. Consolidated EBITDA for FY 2013-14 was a record GB£3,393
million, an increase of 45.1% compared to FY 2012-13. The EBITDA
improvement comprises increased sales volumes and revenues, as
well as favourable product and market mix. Profit before tax (PBT) for
FY 2013-14 was GB£2,501 million, an increase of GB£827 million (49%)
