Statutory Reports
Corporate Overview
69th Annual Report 2013-14
76
Financial Statements
crores (70,563 units) in previous year.
Due to weak operating and economic environment in India,
movement of commercial vehicles has slowed down in all
segments and large and small fleet operators have large waiting
period and reduced trips. Delay in receipt of payments by large fleet
operators from companies is further delaying payments to attached
vehicles of smaller operators. This has resulted in low income and
increased levels of provisioning, due to loss of contracts by small
fleet operators / First time users in M&HCV / LCV segment since last
few months. The performance of HCV loans was the weakest due to
slow economic growth, overcapacity and rising input costs.
Various monetary and fiscal measures were unable to stimulate
growth across segments resulting sluggish growth and consequent
lower demand of all commercial and passenger vehicles. However,
with a highly motivated employee workforce, significantly greater
customer orientation and an increased branch network / field
infrastructure, TMFL is poised for significant, sustainable growth and
is confident that it would deliver on its vision for the future.
With a view to de-risk the portfolio and explore additional sources
of revenue, the used vehicle finance business was re-launched
by seeding the business in select geographies during the year.
Disbursements achieved under refinance were at
`
49.74 crores
(1,260 vehicles) during FY 2013-14 as against
`
1.60 crores (9
vehicles) in the previous year.
TMFL increased its reach by opening a number of limited services
branches (called Spoke branches) exclusively in Tier 2 & 3 towns.
This has also helped in reducing the turn-around-times to improve
customer satisfaction.
TMFL’s new initiative of Channel Finance and fee based Insurance
support business has also helped improve its profitability. TMFL is
confident of significantly adding to its revenues and profitability
through these new businesses in the coming period. TMFL has
also tied up with the Company’s used vehicle business for working
together to improve realizationvalue from the sale of repossessed
stocks by refurbishing them and selling them through the
Company’s dealers.
TMFL has further enhanced its “Office of the Customer initiative”
as well as its spokes branch network & infrastructure and is
confident that these investments will pay rich dividends through
significantly increased interactions/relations with its customers
and dealers.
Tata Technologies Ltd (TTL):
TTL is a key strategic partner in
several of the information technology initiatives for the Tata Motors
Group. The broad scope of TTL activities are as follows:
1.
Engineering Automation Group [EAG]: EAG addresses the
engineering and design needs of manufacturers through
services for all stages of the product development and
manufacturing process.
2.
Enterprise Solutions Group [ESG]: ESG addresses the
Information Technology needs of manufacturers including
business solutions, strategic consulting, ERP implementation,
systems integration, IT networking and infrastructure solutions
and program management.
3.
Product Lifecycle Management [PLM]: PLM addresses the
product development technology solution requirements
of manufacturers including end-to-end implementation of
PLM technology, best practices and PLM consulting. PLM
also includes the TTL’s proprietary applications iGETIT® and
iCHECKIT®.
During FY 2013-14, the capabilities in the industrial machinery
domain, was significantly expanded through the acquisition of
Cambric, now comprises an additional 325 engineering experts
with extensive knowledge in systems, mechanical and electrical
engineering, product design, electronics and embedded design
and development. TTL innovative and frugal engineering approach
helps organizations create products – at a faster pace with a lower
cost – delivering more value to the end-user.
The consolidated revenue in FY 2013-14 was
`
2,394.73 crores, an
increase of 17.1% against
`
2,045.42 crores in the previous year. The
Services/Products business mix was a 77:23 split as compared to
76:24 mix for FY 2012-13. The Americas revenue was
`
743.69 crores
with Asia Pacific recording
`
972.88 crores and Europe generating
`
960.38 crores.
