moneycontrol.com
India's largest commercial-vehicle (CV) maker Tata Motors says domestic demand for trucks remains sluggish and there are no signs of a turnaround yet.
Also Read: Ashok Leyland to cut FY14 investments to Rs 400cr
"The slowdown in the CV industry is more prolonged this time. There is a fair amount of idle capacity in the market. First that has to get utilised then demand for new vehicles will kick in. We don't see any green shoots yet," said Ravi Pisharody, ED, head - CV business unit, Tata Motors.
He says the company will continue to launch new products, which includes new variants and engine options in its top-end Prima truck range and the Ultra range of trucks will also be launched in 2-3 months.
Further, C Ramakrishnan, CFO, Tata Motors said that high marketing costs due to the increased competitive intensity was hurting margins.
He sees margins remaining under pressure in the near future, and Tata Motors will continue "tailoring" production at its plants as per demand requirements.
The company's current CV capacity utilisation stands at 60 percent, while passenger vehicle capacity utilisation is around 40-50 percent.
However, despite the margin pressure, discounting in the truck business is unlikely to be cut back, especially given strong competition from.new companies like Bharat Benz.
"Discounts are a part of the business," Ramakrishnan said.
Q1 EARNINGS DROP
Tata Motors' first quarter consolidated net profit declined 23 percent year-on-year to Rs 1,726 crore, dragged down mainly by the sluggish domestic business.
The company's consolidated revenue rose 8 percent to Rs 46,785 crore in April-June.
Analysts on average were expecting Tata Motors to report a consolidated net profit of Rs 2,250 crore, on revenue of Rs 45,700 crore in April-June, according to a CNBC-TV18 poll.
In the standalone operations, the company reported a net profit of Rs 703 crore, boosted by a huge other income of Rs 1,620.55 crore, which mainly included dividend from its British luxury Jaguar Land Rover unit.
Excluding the other income, Tata Motors posted operating loss of Rs 395 crore.
Its operating profit margin for the quarter shrank to 2.3 percent from 7.3 percent in the year ago quarter.
Standalone revenue for Q1 was down 14 percent to Rs 9,105 crore as total vehicle sales fell 19 percent to 1.54 lakh units.
That slump was to an extent offset by its Jaguar Land rover business, where revenue rose 13 percent to GBP 4,097 million and retail sales were up 10 percent to 94,719 units in April-June.
JLR net profit surged 29 percent to GBP 304 million.
JLR's growth is being driven by markets like Asia Pacific, where sales rose 37 percent, China- up 11 percent and UK and North America- up 13 percent and 10 percent respectively.
However, growth in Europe remains slow due to the economic slowdown in the region. Sales there rose just 3 percent.
Ralph Speth, CEO, JLR, said that demand was strong for the new products like Range Rover, Jaguar F-Type and XF Sportbrake.
It has plans to sell 1 lakh units in China and Speth said the company was on track to achieve that.
Tata Motors shares tumbled post the results and closed at Rs 278.90, down 3 percent on NSE.
nachiket.kelkar@network18online.com
Anda sedang membaca artikel tentang
Tata Motors: No signs of turnaround in domestic truck biz
Dengan url
http://kebugaranhidup.blogspot.com/2013/08/tata-motors-no-signs-of-turnaround-in.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Tata Motors: No signs of turnaround in domestic truck biz
namun jangan lupa untuk meletakkan link
Tata Motors: No signs of turnaround in domestic truck biz
sebagai sumbernya
0 komentar:
Posting Komentar