TATA MOTORS
Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, India. It was founded by J.R.D. Tata in the year 1945. They have their manufacturing and vehicle plants in some parts of India, as well as in South Korea, South Africa, the UK, Austria, Slovakia, and Thailand through a strong global network of subsidiaries, associate companies, and Joint Ventures which includes Jaguar Land Rover and Tata Daewoo. They have a diverse portfolio including an extensive range of cars, sport utility vehicles, trucks, buses, and defense vehicles of which 4.7 million are exported.
The company stands out in the market because of its global presence and its role in proactively shaping the electric mobility landscape in the country. They have showcased the largest portfolio of EVs in India at the Auto Expo 2020 and launched the Tigor E+ with a 213 km range, which is the highest-selling EV in India. There is a huge scope for the company’s growth in the future as the automotive sector has a financial outlay of INR 51,000 Crore under the Atmanirbhar Bharat package. Global automobile manufacturer Tata Motors acknowledges its roots and tirelessly works towards addressing the needs of the community. They have numerous ongoing Programmes & projects focusing on influencing and improving the quality of lives. They follow the philosophy of ‘More from Less for More’ and have spent Rs.22.91 crore in the year 2020 on CSR activities.
The shareholding pattern of the company is Promoter & promoter group (46.41%), FIIs (13.78%), DIIs (11.91%), Government (0.15%), and Public (27.75%). Recently, the company’s owned Jaguar Land Rover plans to become a net-zero carbon business by the year 2039 for which they plan on becoming an all EV luxury vehicle marque from 2025. The Prime Minister of India has given them the approval to introduce the Production-linked incentive scheme in the automobile and auto components sectors.
For the year ending 31-03-2021, their sales for Jaguar Land Rover and Land Rover have gone up by 12.40% and 22.60% respectively and there was a decrease of 17.10% in sales of Jaguar. The company recorded a net increase of 16.9% and stands at Rs.89,319.34 Crore against Rs.76,365.79 Crore in the last quarter. They recorded a negative PAT and EPS which stands at (Rs.7510.85) crore and (Rs.20.24) respectively.
Their YoY growth is reported to be 23.10% which is a decent amount of growth keeping the pandemic reason in mind. There was also a big provision expense in Q4 of FY2019-20 which led to a higher expense as exceptional items, thereby causing more loss for the current period. Overall, the company’s performance was not up to the expectations but their plans sound promising for their customers as well as for the company’s growth.
