EBITDA was GB£3,271 million (10.9% margin) in Fiscal 2018, up 10.7% compared to the EBITDA of GB£2,955 million (12.1% margin) in Fiscal 2017 due to the factors described above.
EBIT was GB£974 million (3.8% margin) in Fiscal 2018, down 32.6% compared to the EBIT of GB£1,445 million (6.0% margin) in Fiscal 2017 due to the lower EBITDA as well as an increase in depreciation and amortization, partially offset by higher profits from the company’s China joint venture.
Profit before tax (“PBT”) decreased by 4.6% to GB£1,536 million in Fiscal 2018 compared to GB£1,610 million in Fiscal 2017, reflecting the lower EBIT and favourable revaluation of unrealized foreign currency debt and hedges in Fiscal 2018 compared to unfavourable revaluation of foreign currency debt and the non-recurrence of favourable revaluation of unrealized commodity hedges in the prior year, partially offset by higher net finance expense. The exceptional items primarily include the pension credit of £437 million in Fiscal 2018 compared to the non-recurrence of £151 million of Tianjin recoveries in Fiscal 2017.
Profit after tax (“PAT”) decreased by 10.9% to GB£1,133 million in Fiscal 2018 compared to GB£1,272 million in Fiscal 2017. The effective tax rate of 26.2% in Fiscal 2018 compared to the 21.0% in Fiscal 2017 primarily reflects a £54 million charge for the impact of the change in the US Federal rate from 35% to 21% on deferred tax assets.
Net cash generated from operating activities was GB£2,958 million in Fiscal 2018 compared to GB£3,160 million in Fiscal 2017, primarily reflecting lower profits in Fiscal 2018 compared the prior year and working capital inflows of £81 million compared to £467 million in Fiscal 2017, and Dividends received from the China joint venture of £206 million up from the GB£68 million dividend received in Fiscal 2017, however GB£312 million was paid in tax this fiscal year compared to £199 million in the prior year.
After GB£3,780 million of investment spending (excluding £406 million of expensed R&D), £125 million of net interest expense and £98 million of other outflows, free cash flow was negative GB£1,045 million. Increases in debt of GB£370 million primarily reflects the US$500 million bond issued in October 2017 GB£150 million of dividends were paid to parent Company and £5 million of other distributions to non-controlling interests were paid during the year. As a result Jaguar Land Rover had a total cash balance of GB£4,657 million (comprising GB£2,626 million of cash and cash equivalents and GB£2,031 million of financial deposits) at March 31, 2018 compared to GB£5,487 million of total cash at March 31, 2017 (comprising GB£2,878 million of cash and cash equivalents and GB£2,609 million of financial deposits). With total cash of GB£4,657 million and an undrawn revolving credit facility of GB£1,935 million (amended and extended in July 2017) maturing in July 2022, total liquidity available to Jaguar Land Rover was GB£6,592 million at March 31, 2018, compared to GB£7,357 million at March 31, 2017.
FINANCIAL PERFORMANCE OF TATA MOTORS FINANCE LTD (AS PER INDIAN GAAP)
Consolidated revenue for TMF Holdings during Fiscal 2018 increased 5.7% to Rs.2,875.53 crores, compared to Rs.2,720.51 crores in Fiscal 2017. The Profit before tax was Rs.290.28 crores in Fiscal 2018, compared to a loss before tax of Rs.698.56 crores in Fiscal 2017. The Profit after tax was Rs.217.41 crores in Fiscal 2018, as compared to a Loss of Rs.1,182.29 crores in previous year. The GNPA reduced by 1,390 bps to 4% (measured on 90 days basis). NNPA at 3%.
FINANCIAL PERFORMANCE OF TATA DAEWOO COMMERCIAL VEHICLES (AS PER KOREAN GAAP):
During Fiscal 2018, TDCV, registered revenues of KRW 868.26 billion (Rs.5,035 crores), a drop of 15.8% over the previous year revenues of KRW 1,031.77 billion (Rs.5,986 crores), mainly due to lower domestic sales. The Profit After Tax was KRW 33.66 billion (Rs.203 crores) compared to KRW 50.25 billion (Rs.290 crores) of Fiscal 2017. Lower profitability was mainly due to the impact of lower sales which was partially set off by material cost reduction
FINANCIAL PERFORMANCE OF TATA TECHNOLOGIES LTD
The consolidated revenue of TTL in Fiscal 2018 decreased by 3.9% to Rs.2,691.48 crores, compared to Rs.2,801.95 crores in Fiscal 2017. The profit before tax decreased by 25.7% to Rs.336.43 crores in Fiscal 2018, compared to Rs.452.77 crores in Fiscal 2017. The profit after tax decreased by 30.5% to Rs.245.71 crores in Fiscal 2018, as compared to Rs.353.59 crores in Fiscal 2017. The Company suffered decline in revenue in Europe and North America primarily due to completion of vehicle programs and delay in the start of new programs due to client product plan changes, budgetary approval delays and softness in staffing deployments. This was partially offset by 6.8% growth in Asia Pacific regions. There has been increase in purchase of traded products, employee costs and other expenses partially offset by outsourcing and consultancy charges, leading to a decrease in profits.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.