TATA MOTORS = UPDATE DATED 04TH,OCTOBER,2010= Q2 SALES IMPRESSIVE = PROFTABILITY CAN BE SIMILAR = IMPROVING EVERY MONTH

Tata Motors Limited

NSE Symbol   TATAMOTORS

UPDATE DATED 04 10 2010

The last update of TATA MOTORS was on 1^st,sep,2010 under the  following link : Control+click to follow the Link:

http://wiseinvestmentideas.blogspot.com/2010/09/tata-motors-surging-demand-excellent.html

Sales in July, August and September have recorded impressive growth. The results for Q1 are given in brief below. Q1 results, specially the consolidated results indicate a smart turnaround in the European Operations of the company. Since then, the progress has been continuing at a smart pace. Now, TATA Motors has gone in for a QIP Issue, which is expected to significantly reduce its Debt burden, while not adding significantly to the Equity. This will augur well for the company’s profits in future – from Q3 onwards.

It is also still on the acquisition mode wherever an opportunity presents. Its notice to NSE dt 4^th October says - "TATA MOTORS ACQUIRES 80% STAKE IN TRILIX SRL., ITALY".

All in all, TATA Motors is becoming better and better for the Investors and other stakeholders with each passing day.

SALES FIGURES

Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in September 2010 were 64,668 vehicles, a growth of 23% over 52,513 vehicles sold in September 2009. The company’s domestic sales of Tata commercial and passenger vehicles for September 2010 were 59,611 nos., a 20% growth over 49,650 nos. sold in September last year.

Cumulative sales (including exports) for the company for the fiscal are 380,113 nos., a growth of 39% over 273,491 nos. sold last year.

Commercial Vehicles

The company’s sales of commercial vehicles in September 2010 in the domestic market were 35,734 nos., a 14% growth compared to 31,474 vehicles sold in September last year. LCV sales were 19,097 nos., a growth of 3% over September last year. M&HCV sales stood at 16,637 nos., a growth of 28% over September last year.

Cumulative sales of commercial vehicles in the domestic market for the fiscal are 204,242 nos., a growth of 26% over last year. Cumulative LCV sales are 115,342 nos., a growth of 15% over last year, while M&HCV sales stood at 88,900 nos., a growth of 45% over last year.

Passenger Vehicles

The passenger vehicles business reported a total sale and distribution offtake of 25,527 nos. (23,877 Tata + 1,650 Fiat) in the domestic market in September 2010, a 23% increase compared to 20,752 nos. (18,176 Tata + 2,576 Fiat) in September last year. Sales of Tata passenger vehicles are 23,877 nos., a growth of 31% over September 2009. Sales of the Tata Nano were 5,520 nos., higher by 61% over September last year. The Indica range sales were 6,258 nos., lower by 37% over September last year. The Indigo range recorded sales of 8,783 nos., a growth of 248% over September last year. The Sumo/Safari range accounted for sales of 3,316 nos., higher by 40% over September last year.

Jaguar Land Rover sales continued their upward trend.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 161,036 nos. (149,173 Tata + 11,863 Fiat), against 111,470 nos. (98,568 Tata + 12,902 Fiat) last year, a growth of 44%.

Cumulative sales of Tata passenger vehicles were 149,173 nos., a 51% increase compared to 98,568 nos., in September last year. Cumulative sales of the Nano are 37,402 nos., a 345% increase compared to 8,396 nos., in September last year. Cumulative sales of the Indica range are 48,902 nos., lower by 14%. Cumulative sales of the Indigo family are 43,771 nos., higher by 149%. Cumulative sales of the Sumo/Safari range are 19,098 nos., higher by 22%.

Exports

The company's sales from exports at 5,057 vehicles in September 2010 registered a growth of 77% compared to 2,863 vehicles in September last year. The cumulative sales from exports for the fiscal at 26,698 nos. are higher by 102% over 13,223 nos. in the same period last year.

Q1 FY 2011 RESULTS :

Consolidated Results for the quarter ended on 30-JUN-2010 were as follows:

Net Sales of Rs. 2687608 lacs for quarter ending on 30-JUN-2010 against Rs. 1628960 lacs for the quarter ending on 30-JUN-2009.

Net Profit / (Loss) of Rs. 198873 lacs for the quarter ending on 30-JUN-2010 against Rs. (32878) lacs for the quarter ending on 30-JUN-2009. As we can see, the European Operations have turned around in a very handsome way and have been improving ever since.

Standalone Results for the quarter ended on 30-JUN-2010 was as follows:

Net Sales of Rs. 1035187 lacs for quarter ending on 30-JUN-2010 against Rs. 635020 lacs for the quarter ending on 30-JUN-2009.

Net Profit / (Loss) of Rs. 39572 lacs for the quarter ending on 30-JUN-2010 against Rs. 51376 lacs for the quarter ending on 30-JUN-2009.

ANNOUNCEMENTS

TO THE NSE

04-10-2010       Tata Motors Limited has informed the Exchange regarding a press release dated October 4, 2010, titled "TATA MOTORS ACQUIRES 80% STAKE IN TRILIX SRL., ITALY". 

04-10-2010       Tata Motors Limited has informed the Exchange regarding a press release dated October 04, 2010, titled "Tata Motors Limited-Increase in QIP Issue Size".

04-10-2010       Tata Motors Limited has informed the Exchange regarding a press release dated October 01, 2010, titled "Tata Motors Limited launches QIP Issue".

30-09-2010       Tata Motors Limited has informed the Exchange regarding a Press Release dated September 30, 2010, titled "Tata Motors' Annual Report in Form 20-F".

10-08-2010       Tata Motors Limited has informed the Exchange regarding a Press Release dated August 10, 2010 titled "Consolidated Net Revenue grows by 64.2% in Q1 FY 2010-11".

10-08-2010       Tata Motors Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-JUN-2010 as follows: Net Sales of Rs. 2687608 lacs for quarter ending on 30-JUN-2010 against Rs. 1628960 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 198873 lacs for the quarter ending on 30-JUN-2010 against Rs. (32878) lacs for the quarter ending on 30-JUN-2009.

10-08-2010       Tata Motors Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Net Sales of Rs. 1035187 lacs for quarter ending on 30-JUN-2010 against Rs. 635020 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 39572 lacs for the quarter ending on 30-JUN-2010 against Rs. 51376 lacs for the quarter ending on 30-JUN-2009.

07-07-2010       Tata Motors Limited has submitted to the Exchange a copy of the Notice dated June 28, 2010 alongwith the Explanatory Statement seeking the consent of the shareholders by a postal ballot for the following the items: (1) Raising of additional long term resources. (2) Issuance of 'A' ordinary shares on exercise of conversion option by holders of Zero Coupon Convertible Alternative Reference Securities (CARS). (3) Increase in borrowing limits. (4) Creation of Charges on the Company's Properties.(5) Payment of advisory fees to Mr Ravi Kant, Vice Chairman.

27-05-2010       Tata Motors Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 27, 2010 decided that the Annual General Meeting of the Company would be held on September 01, 2010.    -

27-05-2010       Tata Motors Limited has informed the Exchange regarding a press release dated May 27, 2010 titled " Consolidated Net Revenue grows by 30.5% in FY10 over previous year to Rs. 92,519 crores Consolidated Profit of Rs. 2,571 crores (Loss of Rs. 2505.25 crores in the previous year".        

27-05-2010       Tata Motors Limited has informed the Exchange that at the Board Meeting held on May 27, 2010, the Board of Directors have recommended a dividend of Rs. 15/- per share on Ordinary Shares for FY 2009-10 and a dividend of Rs. 15.50 per share on 'A' Ordinary Shares for FY 2009-10 (Rs. 6/- per share on Ordinary Shares and Rs. 6.50/- per share on 'A' Ordinary Shares for FY 2008-09).

27-05-2010       Tata Motors Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 3537378 lacs for year ending on 31-MAR-2010 against Rs. 2535408 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 224008 lacs for the year ending on 31-MAR-2010 against Rs. 100126 lacs for the year ending on 31-MAR-2009.

27-05-2010       Tata Motors Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 9189345 lacs for year ending on 31-MAR-2010 against Rs. 7037040 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 257106 lacs for the year ending on 31-MAR-2010 against Rs. (250525) lacs for the year ending on 31-MAR-2009.

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YES BANK VS INDUSIND BANK = UPDATE DT 04 10 2010 = COMPARISON OF Q1 FY 2011 RESULTS = FUTURE BRIGHT FOR BOTH BANKS

INDUSIND BANK vs YES BANK

Q1 FY 2011 COMPARISON

UPDATE DATED 04 10 2010

IndusInd Bank and Yes Bank are two new Generation Banks which are growing at a fast pace.

Both are under Good Managements, who have excellent vision of what they want to achieve for their banks. Both Banks have shown good Potential in the past and good growth Rates.

It is therefore interesting to compare their Q1 FY2011 results in order to look into their future Potential.

Their Q1 FY2011 results compared with their immediate preceding quarters (Q/E 31.03.2010) and corresponding quarters (ending 30.06.2009) are tabulated below to enable some comparison.

The red coloured headings relate to IndusInd and Green relates to Yes bank.

As we can see - Interest on Advances for IndusInd is Rs.604.77 Cr. in Q1 FY11, which is higher by 8.43% from Previous Qtr and by 23% from corresponding Qtr. The same for Yes bank is Rs.557.88 cr which is higher by 13.85% from pre. Qtr and by 41.46% from corresponding Qtr.

Total Income for IndusInd is Rs.932.50 Cr, which is higher by 9.38% from pre Qtr and by 16.33% from corresponding Qtr. For Yes Bank, the same is Rs.883.03 Cr which is 7.07% higher from pre.qtr and 28.38% higher from Corresponding Qtr.

Operating Profit for IndusInd is Rs.230.61 Cr, which is higher by 15.03% from Pre.Qtr, and by 32.3% from corresponding Qtr. For Yes Bank, the same is Rs.248.95 Cr, which is lower by 3.35% from previous Qtr, by higher by 25.87% from corresponding Qtr.

While Interest expended is approximately the same, the employee cost, operating expenses and other operating expenses are higher for IndusInd, which has brought down the operating profit. This may be due to the Higher number of Branches that IndusInd had at the end of last year (210 vs 157)and approximately 100 Branches planned by both the Banks in current year. If revenue Per branch and revenue per employee starts increasing, it appears that IndusInd can easily match Yes Bank at operating profit level.

Provisions       for IndusInd is Rs.48.74 Cr, while the same is Rs.12.56 Cr for Yes Bank.

Profit  before tax for IndusInd is Rs.181.87 Cr – higher by 23.44% from previous Qtr and by 29.93% from corresponding Qtr. For Yes Bank, the same is Rs.236.39 Cr, higher by    9.94% from previous Qtr and by 55.25% from corresponding Qtr.

Net Profit  for IndusInd is Rs.118.55 Cr, which is 21.02% higher from previous Qtr and by 37.05% from corresponding Qtr. The same for Yes Bank is Rs.156.37 Cr which is 11.67% higher from pre. Qtr and by 56.26% from corresponding Qtr.

Paid-up Equity is Rs.411.06 Cr for IndusInd and Rs.341.02 Cr fro Yes Bank – each with Face Value of Rs.10.

Capital Adequacy Ratio is 13.71 fro IndusInd and 16.57 for Yes Bank.

Basic EPS is Rs.2.89 for IndusInd and Rs.4.59 for Yes Bank.

% of Gross/Net NPA      is 0.38% for IndusInd and 0.04% for Yes Bank.

Return on Assets is 1.33 for IndusInd and 1.62 for Yes Bank.

In last 3 months, IndusInd has entered into MOUs with various Auto Manufacturers like TATAs, Ashok Leyland, Toyota Kirloskar Motor etc for financing vehicle purchases and dealer financing etc. All these Auto manufacturers have performed excellently in respect of Sales in Q2 FY11 and are also expected to continue to perform well in Fy11 totally. Therefore, it can be expected that its Total income in Q2 may be significantly higher than last Qtr and continue to rise higher in Q3 and Q4 as well. Also, it has raised a huge sum through QIP at a Good premium in the last week of September, of about Rs.1173 Cr, which may raise its Equity ( very little of course) immediately and may bring down the Rise in EPS also slightly in Q2. We can however expect it to have huge beneficial effect from now on, on all parameters of the Bank.

Yes Bank has also been raising funds periodically, which is reflecting in its capital adequacy. "Our total fund raising would be over Rs 1,500 Crore this year and we have already raised Rs 865 crore," CEO &MD of Yes Bank told recently. But, it appears, there may not be much equity infusion.

Thus, both banks are trying to grow at a decent pace and enhancing their business and profitability consistently.

The difference in EPS, P/E and Business volumes as of today are slightly different – because of the stage of business at which each bank is. For example, Net Profit  for IndusInd is Rs.118.55 Cr, which is 21.02% higher from previous Qtr but the same for Yes Bank is Rs.156.37 Cr which is 11.67% higher from pre. Qtr.

IndusInd has set its Ambition to be among the TOP 3 PVT SECTOR BANKS whereas Yes Bank wants to be recognized as the WORLD’s BEST QUALITY BANK IN INDIA.

Well. Both Banks are aiming for the skies. Both are performing well. Both appear to be destined to climb to the TOP LADDER. Hence, current prices and price earnings may not perhaps be the best parameters for medium to long term Investors, when looking at buying these two Scrips.

RESULTS IN FIGURES :

	INDUSIND			YESBANK
Q / E	2010 JUNE	Dif %1	Dif %2	2010 JUNE	Dif %1	Dif %2
Interest on Advances	60477	8.43	23	55788	13.85	41.46
Income on Investments	16445	4.65	25.02	17658	2.77	26.16
Income on Balances With RBI	105	-34.78	-67.29	292	56.99	105.63
Others	127	-65.49	-47.3	181	103.4	-73.73
Interest Earned	77154	7.13	22.69	73919	11.22	36.22
Other Income	16096	21.61	-6.82	14384	-10.2	-0.94
Total Income	93250	9.38	16.33	88303	7.07	28.38
Interest Expended	47586	6.36	3.12	47709	13.48	25.9
Employees Cost	8904	14.26	46.47	8123	14.67	32.82
Other Operating Expenses	13699	8.09	30.44	7576	-0.18	51.61
Operating Expenses	22603	10.44	36.32	15699	6.99	41.27
Operating Profit	23061	15.03	32.3	24895	-3.35	25.87
Provisions	4874	-8.28	41.97	1256	-70.5	-72.41
Profit  before tax	18187	23.44	29.93	23639	9.94	55.25
Tax Expense	6332	28.23	18.4	8002	6.72	53.32
Net Profit After Tax	11855	21.02	37.05	15637	11.67	56.26
Net Profit	11855	21.02	37.05	15637	11.67	56.26
Face Value in Rs	10	0	0	10	0	0
Paid-up Equity	41106	0.1	15.73	34102	0.4	14.79
Capital Adequacy Ratio	13.71	-10.57	12.93	16.57	-19.6	-6.01
Basic EPS B EI	2.89	20.92	12.93	4.59	8	36.2
Diluted EPS B EI	2.81	20.09	18.44	4.41	8.35	32.43
Gross/Net NPA	8249	-18.99	15.16	1109	-14.6	-63.48
% of Gross/Net NPA	0.38	-24	-50.47	0.04	-33.3	-83.33
Return on Assets	1.33	14.66	-62.38	1.62	-4.71	-10
Public holding (%)	77.85	0.03	4.72	72.95	0.15	5.54

As always, readers are requested to offer their suggestions, comments, and corrections, if any, so that the views herein will be more effective, and this blog will receive them all with thanks.

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