Net loss of Rs.9894 Crore in Q4FY20 results – Tata Motors
The Largest automotive company in the country, Tata Motors which is a part of Tata Group. The Total assets for Tata Motors have around Rs. 3.07 Lakh Crore and there are 82,800 employees serving in the Company.
Established in the year 1945, it is one of the world’s Top 500 Companies list. The Company is primarily engaging in the Manufacturing and Sales of Locomotives, Trucks, Vans, Bus Coaches, Four wheeler, Construction equipment and Military Vehicles. It is said to be a Market Leader in the Indian Automotive Industry.
Post acquisition of Jaguar Land Rover (JLR) in the year 2008, the Tata Motors company had many challenges globally. Due to Policy changes in several countries, the JLR sales were hurt significantly. While the Domestic Sales for the Tata Motors had at good, but the Jaguar and Land Rover is losing.
Tata Motors is seen as a Major Player in the EV segment in India, the company is also busy in its R & D. At the same time, the company’s sales and profit has been declining over the past four years.
As per Q4FY20 – quarterly results, the company reported a sales of Rs. 62,493 Crore and the expenses at Rs. 61,806 Crore. Due to Covid-19 impact, there is a net loss of Rs. 9,894 Crore, said by the Company. The Earning per share (EPS) is at (-27.50) for the quarter ending March 2020.
In the Fourth Quarter of FY20, the Sales were also declined by 30 Percent. For the entire financial year 2019-20, the Total Sales fell down by 12 Percent. However the Net loss for the FY20 is lower than the previous FY19. The Returning to the Profitability is the real question from the Shareholders.
Over the past 5 years, the Sales growth was around 5 Percent and the Compounded Profit growth was nothing there. The Profit growth for the past twelve months were down by 143 Percent. The Return on Equity (ROE) is low at 6 Percent over the past 3 years and 11 Percent in the 5 Years.
The one year ROCE is coming at Negative (-2 %) and in 5 years, it was around 10 Percent. Tata Motors have a Market Cap of Rs. 33,230 Crore and the Book value is said to be Rs. 170 per Share. The Debt to Equity stands at 1.83.
The Debt is around Rs. 95,470 Crore and the Interest Coverage Ratio (ICR) is nothing but stood at one times. It is noteworthy that the FII had a 17 Percent Share Holding in this Company. The Promoter holding comes at 43 Percent and there is a 4 Percent of Shares were Pledged by the Promoters.
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