Tata Motors looks to new models, technology for growth
17 July 2015
Tata Motors is gearing for strong comeback through investments in new products and technologies. The company plans to roll out a slew of new models in the passenger and commercial vehicle segments, as also in evolving technologies to address customer needs, chairman Cyrus Mistry has said.
''Tata Motors strategy hinges on leveraging the long-term growth opportunity in the Indian automobile industry. India is forecast to witness multi-fold increase in motorisation," Cyrus Mistry, chairman of Tata Motors, said in his annual address to shareholders.
"Our strategy hinges on leveraging the long-term growth opportunity both in the domestic as well as global market. Our country is forecast to witness multi-fold increase in motorisation and we are strongly investing in product and technologies to meet the demand arising from that and also to make Tata Motors future ready," Mistry told shareholders at the 70th annual general meeting.
Tata Motors, which has seen its fortunes plunge with successive decline in sales and revenue for the past several years, has recouped some of the lost ground with the launch of the sedan Zest, the hatchback Bolt and the reworked Nano, and reported double-digit sales since January.
The Tata Motors Group, including UK-based Jaguar lands Rover, recorded a 12.6-per cent growth in gross turnover to Rs266,345 crore in fiscal 2015 from Rs236,626 crore in the previous financial year - the highest turnover recorded by the group.
Consolidated revenue (net of excise) for fiscal 2015 at Rs262,796 crore grew by 12.9 per cent over last year on the back of strong growth in wholesale volumes across products and richer product mix markets at Jaguar Land Rover and strong M&HCV sales in India (during second half of the year).
Consolidated EBITDA margins for fiscal 2015 stood at 16.0 per cent. Consequently, profit before tax and profit after tax stood at Rs21,703 crore and Rs13,986 crore, respectively.
Tata Motors Limited recorded a gross turnover rose 4.7 per cent to Rs39,524 crore from Rs37,758 crore in the previous year. Improved freight availability and improved profitability of truck operators, fleet replacement demand mainly in the high tonnage segment, supported the company sales growth.
However, the need to increase marketing expenses on account of severe competitive intensity and depressed market scenario has impacted EBITDA margins decreasing it from negative 1.4 per cent to negative 2.2 per cent for fiscal 2015.
Pre-tax and post-tax losses for the fiscal 2015 were lower at Rs3,975 crore and Rs4,739 crore, respectively, compared to pre-tax loss of Rs1,026 crore and after-tax profit of Rs335 crore, respectively, for the corresponding period last year.
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 reduce costs. During the year, the company had launched Zest, Bolt, and Ultra Truck, which have received encouraging response from customers.
As a part of the `Horizonext' strategy, the company is committed to introduce new, modified and refreshed products, which will improve the company's revenue. Investment in right products and vehicle platform are being made to ensure a competitive pipeline for the future.
Together with forward looking product strategy, the company is also focusing extensively in right sizing the business and operational improvement through various strategic projects for operational excellence and cost cutting initiatives, Mistry added.