Statutory Reports
Corporate Overview
69th Annual Report 2013-14
78
Financial Statements
Profit
before
Exceptional
Items,
Depreciation, Interest and Tax
16.4
14.5
Depreciation and Amortisation (including
product development / engineering
expenses written off)
5.9
5.1
Finance costs
2.0
1.9
Exceptional Item – Loss
0.4
0.3
Profit before Tax
8.1
7.2
Cost of materials consumed (including change in stock)
(
`
in crores)
FY 2013-14
FY 2012-13
Consumption of raw materials and
components
135,550.04 113,851.34
Purchase of product for sale
10,876.95
9,266.00
Change in finished goods and Work-in-
progress
(2,840.58)
(3,029.29)
Total
143,586.41 120,088.05
Cost of material consumed decreased from 64.6% to 62.4% of
total revenue (excluding income from vehicle financing). At
TML RM cost was 75.6% of net revenue as compared to 73.6%,
representing an increase of 200 basis points, mainly attributable to
product mix (reduction in M&HCV sales). For JLR the RM cost was
60.9% of revenue (FY 2012-13 62.5%), representing a reduction of
160 basis points. The reduction is mainly attributable to product
mix, cost reduction programmes and reduction in input price of
major metals consumed. On a consolidated basis, JLR operations
have significantly contributed to reduction in material cost in
terms of % to revenue.
Employee Cost
was
`
21,556.42 crores in FY 2013-14 as compared
to
`
16,632.19 crores in FY 2012-13; an increase of
`
4,924.23
crores. Of the increase
`
1,823.07 crores (approximately) relates to
translation impact of JLR from UK Pounds to Indian Rupee. At JLR
the increase in employee cost is attributable to increases in the
permanent and contractual head count to support the volume
increases/new launches and product development projects. At
TML the employee cost marginally increased to
`
2,877.69 crores
as compared to
`
2,837.00 crores in FY 2012-13.
Manufacturing and Other Expenses
include all works operation,
indirect manufacturing expenses, freight cost, fixed marketing costs
and other administrative costs. These expenses have increased to
`
43,825.77 crores from
`
35,648.33 crores in FY 2012-13. As explained
above, each line item includes the element of translation impact of
JLR (approximately
`
3,704 crores).
The breakup is given below-
(
`
in crores)
FY 2013-14
FY 2012-13
Processing charges
1,093.53
1,450.56
Stores, spare parts and tools
consumed
1,682.34
1,424.12
Freight, transportation, port charges, etc.
6,879.75
4,803.67
Repairs to buildings
93.58
120.84
Repairs to plant, machinery, etc.
261.45
202.24
Power and fuel
1,128.69
1,077.77
Rent
465.86
317.55
Rates and taxes
265.51
203.07
Insurance
278.75
225.91
Publicity
8,064.10
6,607.14
Works operation and other expenses
23,660.54
19,098.97
Excise Duty on change in Stock-in-trade
(48.33)
116.49
Manufacturing and Other Expenses
43,825.77 35,648.33
The increases are mainly driven by volumes, size of operations
and also include inflation impact however this has remained same
at 18.8% as compared to 18.9% in FY 2012-13, in terms of % to
revenue.
i.
Processing charges were mainly incurred by TML, where
mainly due to volume contraction, the expenditure was lower.
ii.
Freight, transportation, port charges etc. have increased,
mainly at JLR, in view of increase in volumes in the overseas
markets.
iii.
The publicity expenses increase, mainly related to new
product launches (Range Rover Sport and the F-Type launch)
and ongoing product / brand campaigns.
iv.
The works operation and other expenses have increased to
