TATA MOTORS LTD

(TATAMTRDVR | BSE Code: 570001)

INR 864.3
52 Week (High - INR 1179 & Low - 622)

About the company

Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers
a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world. It has operations in India, the UK,
South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint
Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

Financial Summary
Revenues (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
437,92
345,96 8 31,399 352,098
278,45 7
249,79
4
5
335,316
2,414 330,875 331,868

2021 2022 2023 2024

2021 2022 2023 2024 -13,451 -11,441 2021 2022 2023 2024

Return on Equity (%) Return on Asset (%) Financial Leverage

48.22% 8.92% 7.38x

6.72x
5.63x 5.41x

5.37%
0.73%

2021 2022 2023 2024

2021 2022 2023 2024
- -
22.90% 22.93% -3.41% 2021 2022 2023 2024
-4.07%

Recent Updates
• Net profit rises 5.97% YoY (FY23 to FY24) to Rs 31399 crore; post 4 year loss figures.
• Tata Motor's margins increased to 7.17% vs 0.7% on a YoY basis, EBITDA was up 70% at Rs 64803 crore.
• The manufacturer's earnings per share or EPS rose to INR 78.63 from INR -11.97 YoY basis (FY23 to FY24)
• Tata Motors’ domestic CV business continued to offer more value to customers through superior BS VI Phase
II product range and a bouquet of customised value-added services, thereby delivering improved realisations.
• COGS consisted 76.39% in Revenue figures in FY24, leaving less GPM of 23.61%.
• Tata Motors remarked highest ever NPS (Net Promoter Score) of 72.
• 18% of total revenues came from CV segment with sale of 4,05,471 units (INR 78,791 crores)
• TML e-bus fleet cumulatively crossed 140 million km with >95% uptime till Q4 FY24.
• The downstream spares and service business continued the growth momentum while focusing on delivering
customer convenience through reduced turnaround time and improved deliveries. E-Dukaan, our ‘Direct to
Customer’ digital storefront for spares, delivered an impressive 3.5x growth.

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 Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Average Shareholder Equity 76,744.9 77,803.7 61,195.3 58,728.9 49,904.0 44,941.5 65,119.9
Return on Equity 11.71% -37.05% -19.73% -22.90% -22.93% 5.37% 48.22%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Revenue 291,550.5 301,938.4 261,068.0 249,794.8 278,453.6 345,967.0 437,927.8
Net Profit Margin (A) 3.08% -9.55% -4.62% -5.38% -4.11% 0.70% 7.17%

Revenue 291,550.5 301,938.4 261,068.0 249,794.8 278,453.6 345,967.0 437,927.8

Average Total Asset 299,886.1 316,447.7 312,941.4 330,874.7 335,315.7 331,868.0 352,097.5
Asset Turnover Ratio (B) 1.0x 1.0x 0.8x 0.8x 0.8x 1.0x 1.2x

Average Total Asset 299,886.1 316,447.7 312,941.4 330,874.7 335,315.7 331,868.0 352,097.5
Average Shareholder Equity 76,744.9 77,803.7 61,195.3 58,728.9 49,904.0 44,941.5 65,119.9
Equity Multiplier (C) 3.91x 4.07x 5.11x 5.63x 6.72x 7.38x 5.41x

Return on Equity (A*B*C) 11.71% -37.05% -19.73% -22.90% -22.93% 5.37% 48.22%

Return on Asset
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Average Total Asset 299,886.1 316,447.7 312,941.4 330,874.7 335,315.7 331,868.0 352,097.5
Return on Asset 3.00% -9.11% -3.86% -4.07% -3.41% 0.73% 8.92%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Revenue 291,550.5 301,938.4 261,068.0 249,794.8 278,453.6 345,967.0 437,927.8
Net Profit Margin (A) 3.08% -9.55% -4.62% -5.38% -4.11% 0.70% 7.17%

Revenue 291,550.5 301,938.4 261,068.0 249,794.8 278,453.6 345,967.0 437,927.8

Average Total Asset 299,886.1 316,447.7 312,941.4 330,874.7 335,315.7 331,868.0 352,097.5
Asset Turnover Ratio (B) 1.0x 1.0x 0.8x 0.8x 0.8x 1.0x 1.2x

Return on Asset (A*B) 3.00% -9.11% -3.86% -4.07% -3.41% 0.73% 8.92%

Dupont Summary
• NPM fluctuates from negative values to a positive 7.17% in 2024, contributing to the strong ROE recovery.
• Asset Turnover Ratio has remained consistent between 0.8x and 1.0x across most years but increases to 1.2x in
2024, signifying improved asset efficiency.
• Equity Multiplier hit peak at 7.38x in 2023, indicating high leverage, before dropping to 5.41x in 2024, showing
reduced dependency on debt.
• ROE of TMG has seen a drastical jump to 48.22% in FY24 from 5.37% in FY23.
• ROA of TMG has skyrocketed from 0.73% to 8.92% YoY from FY23 to FY24 respectively.
• Net Profits have rose 13x from INR 2414 Crores in FY23 to 31399 in FY24.
• The company has rebounded, with profitability and asset efficiency driving strong ROE and ROA in 2024. This
signals a potentially more stable and profitable outlook if current trends continue.
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for
any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments

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