Company Analysis of Tata Motors.

1. Presentation on Company Analysis of
Tata Motors
PRESENTED BY:
KUMAR SAURABH
MBA( FINANCE & MARKETING)
4TH SEMESTER

2. Introduction
 Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered
in Mumbai, India. Its products include passenger cars, trucks, vans, coaches, buses, construction
equipment and military vehicles.
 Founded in 1945 by JRD TATA as manufacturer of locomotives the company manufactured its
first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
 Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile
 The company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as
of 2016.

3. Company Profile
 Tata Motors is India's largest automobile company, with consolidated revenues of Rs1,88,818
crore (USD 34.7 billion) in 2012-13.
 Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the
business comprising the two iconic British brands.
 Tata Motors is the country's market leader in commercial vehicles and among the top three in
passenger vehicles. It is also the world's fifth-largest truck and fourth-largest bus manufacturer.
 Tata Motors has over 4,500 engineers, technicians and scientists at R&D centres in India, South
Korea, Italy, Spain and the UK.

4. Competitors

5. Area of business
Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy
commercial vehicles.
 Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in
2002 and the station wagon Indigo Marina in 2004.
 Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.
 Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to
heavy dumpers and multi-axled vehicles in the above 40-tonne segment.
 Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60-
seaters, in the light, medium and heavy segments.

6. SWOT Analysis
Strengths:
 One of the most established company in automobile sector
 Wide & extensive distribution and service network
 Good market penetration in the taxi & rental segment
 Expert service professionals available
 Dedicated engineering and R&D department
 More than 60,000 employees

7. Weakness:
 Limited international presence
 Sometimes faces alleged quality and durability issues
 Not much customer engagement programs and activities
Opportunities:
 Expanding automobile market and available space for competitors
 Increasing per capita income and purchasing capability of potential customer base
 Leveraging customer engagement experience to acquire new customers
 Leveraging mergers and acquisitions to acquire newer technology

8. Threats:
 Increasing fuel costs
 Competition from other big automobile giants
 Competitive products offering same level features at a lesser price
 Product innovations and frugal engineering by competitors

9. Financial Analysis
 Gross Profit Ratio:
year Gross Profit Sales (cr) GP Ratio
2012-13 4267.44 17199.17 24.81%
2013-14 4782.7 20088.63 23.80%
2014-15 5934.01 26664.25 22.25%
2015-16 6567.35 28738.30 22.88%
Gross Profit Ratio= Gross profit/ Net Sales *100
24.81%
23.80%
22.25%
22.88%
20.00%
21.00%
22.00%
23.00%
24.00%
25.00%
26.00%
2012-13 2013-14 2014-15 2015-16
Gross Profit ratio

10. year Sales(cr) Net
profit
(cr)
NP
Ratio
2012-13 17199.17 2000.05 11.62%
2013-14 20088.63 2146.36 10.68%
2014-15 26664.25 2586.51 9.70%
2015-16 28738.30 3000.91 10.44%
 Net profit ratio
Net profit after tax / Net sales * 100
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
11.50%
12.00%
2012-13 2013-14 2014-15 2015-16
Net profit ratio

11.  Debt Equity ratio:
year debt(cr) equity
(cr)
D/E Ratio
2012-13 2495.42 6606.81 0.37
2013-14 2936.84 8447.52 0.34
2014-15 4009.14 10852.94 0.36
2015-16 6280.52 14094.51 0.44
Debt Equity ratio= Total liabilities / stakeholders equity
0
0.2
0.4
0.6
ratio
Debt Equity ratio
2012-13 2013-14 2014-15 2015-16

12. Return on Net worth:
Return on net worth = Net profit / Equity
year Net profit (cr) equity
(cr)
D/E Ratio
2012-13 2000.05 6606.81 0.37
2013-14 2146.36 8447.52 0.34
2014-15 2586.51 10852.94 0.36
2015-16 3000.91 14094.51 0.44
0.3
0.25
0.23
0.21
0
0.1
0.2
0.3
0.4
ratio
Debt equity ratio
2012-13 2013-14 2014-15 2015-16

13. Findings
 Gross Profit ratio of the company has been almost consistent over the years which
shows that the company can reduce the selling price of the products without
incurring loss.
 Net profit ratio of the company has been improving over the years which shows
that company has been in good stage in terms of profitability.
 Debt Equity ratio of the company has been less than 1 over the years which shows
that the portion of assets provided by stockholders is greater than the portion of
assets provided by creditors.
 Return on net worth has increased over the year which shows that the company’s
profitability has increased over the years