TATA MOTORS 2023-24 Annual Report Analysis

Mon, 3 Jun

TATA MOTORS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TATA MOTORS Income Statement Analysis

• Operating income during the year rose 26.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY24 as against 9.8% in FY23.
• Depreciation charges increased by 9.7% and finance costs decreased by 2.3% YoY, respectively.
• Other income grew by 25.6% YoY.
• Net profit for the year grew by 1082.5% YoY.
• Net profit margins during the year grew from 0.8% in FY23 to 7.3% in FY24.

TATA MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,459,670	4,379,278	26.6%
Other income	Rs m	47,371	59,499	25.6%
Total Revenues	Rs m	3,507,040	4,438,777	26.6%
Gross profit	Rs m	337,427	592,611	75.6%
Depreciation	Rs m	248,604	272,701	9.7%
Interest	Rs m	102,255	99,858	-2.3%
Profit before tax	Rs m	33,939	279,551	723.7%
Tax	Rs m	7,041	-38,516	NA
Profit after tax	Rs m	26,899	318,068	1,082.5%
Gross profit margin	%	9.8	13.5
Effective tax rate	%	20.7	-13.8
Net profit margin	%	0.8	7.3

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

TATA MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1,736 billion as compared to Rs 1,550 billion in FY23, thereby witnessing an increase of 12.0%.
• Long-term debt down at Rs 621 billion as compared to Rs 887 billion during FY23, a fall of 29.9%.
• Current assets rose 11% and stood at Rs 1,677 billion, while fixed assets rose 5% and stood at Rs 1,892 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3,576 billion as against Rs 3,309 billion during FY23, thereby witnessing a growth of 8%.

TATA MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	452,561	848,271	87.4
Current Liabilities	Rs m	1,550,273	1,736,170	12.0
Long-term Debt	Rs m	886,958	621,485	-29.9
Total Liabilities	Rs m	3,308,967	3,575,649	8.1
Current assets	Rs m	1,507,007	1,677,182	11.3
Fixed Assets	Rs m	1,793,682	1,891,728	5.5
Total Assets	Rs m	3,308,967	3,575,649	8.1

TATA MOTORS Cash Flow Statement Analysis

• TATA MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs 679 billion, an improvement of 91.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -228 billion, an improvement of 35.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -370 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 81 billion from the Rs -63 billion net cash flows seen during FY23.

TATA MOTORS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	353,880	679,154	91.9%
Cash Flow from Investing Activities	Rs m	-168,042	-228,281	-
Cash Flow from Financing Activities	Rs m	-262,429	-370,060	-
Net Cash Flow	Rs m	-62,721	81,278	-

Current Valuations for TATA MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.0, an improvement from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 946.7, stands at 10.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	903.3	1,142.7
TTM Earnings per share	Rs	7.0	83.0
Diluted earnings per share	Rs	8.1	95.7
Price to Cash Flow	x	5.1	4.8
TTM P/E ratio	x	59.4	10.1
Price / Book Value ratio	x	3.6	3.4
Market Cap	Rs m	1,647,888	2,845,535
Dividends per share (Unadj.)	Rs	2.0	6.0

Ratio Analysis for TATA MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.8x during FY24, from 1.3x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 37.5% during FY24, from 5.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 25.8% during FY24, from 10.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.7% during FY24, from 3.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	2	1
Interest coverage	x	1.3	3.8
Debt to equity ratio	x	2.0	0.7
Return on assets	%	3.9	11.7
Return on equity	%	5.9	37.5
Return on capital employed	%	10.2	25.8

To see how TATA MOTORS has performed over the last 5 years, please visit here.

TATA MOTORS Share Price Performance

Over the last one year, TATA MOTORS share price has moved up from Rs 535.8 to Rs 946.7, registering a gain of Rs 411.0 or around 76.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 54,382.6 (up 2.6%). Over the last one year it has moved up from 33,193.5 to 54,382.6, a gain of 21,189 points (up 63.8%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for TATA MOTORS and quarterly results for TATA MOTORS)