NSE Symbol: TATAMOTORS | BSE Code: 500570
Tata Motors is one of the biggest automobile manufacturing companies in the world. The company has a network of its clients across 170 countries, and the products include sports cars, passenger vehicles, buses, trucks, automotive parts, defense vehicles, and many more. The company relies on its innovation-driven technology to deliver better mobility solutions in the field of automobiles. The principal subsidiaries of Tata Motors are Tata Daewoo, Jaguar Land Rover, and Tata Technologies, through which it provides design and engineering solutions. The Tata Motors has incorporated its manufacturing units in India and abroad, including countries like Thailand, Argentina, South Korea, et cetera, to facilitate its services in international markets.
It was established in 1945 as a part of Tata Group. After that, the primary product line of the company consisted of locomotives. It entered the Indian market by merging with Daimler Benz AG, and in the mid-1950s, the company launched its first commercialized vehicle. In 1991, Tata Motors entered the commercial vehicle market with the launch of the Tata Sierra and Tata Estate.
In the next ten years, Tata Motors launched other essential products like Tata Indica, Tata Sumo, and Tata Nano. These products indeed upgraded the status of Tata Motors by playing a vital part in its success. The company expanded in international markets with the help of acquisitions. Tata Motors bought South Korea's Daewoo Commercial Vehicle Company in 2004, followed by the acquisition of Jaguar Land Rover from Ford Motor in 2008. In 2015, the company took another action towards becoming a global name when it named Lionel Messi as its brand ambassador.
Natarajan Chandrasekaran - Chairman, Tata Sons
Tata Sons, the parent company of Tata Group comprising Tata Consultancy Services (TCS), Tata Motors, Tata Steel, Titan, et cetera. After finishing the university, Mr. Chandra joined Tata and work for thirty years with the group. In fact, from 2009-2017, he worked as the CEO of TCS, after which he was appointed as the Chairman of the Board. It was under his supervision that TCS became one of the prominent IT companies in the world. It is one of the biggest private sector employers in India too.
He is a recipient several awards, including the Best CEO Award for 2013 and 2014 by Business Today, and CNN-IBN Indian of the Year 2014 award. Chandra attained Masters degree from Regional Engineering College in Tiruchirappalli.
Guenter Butschek - CEO and MD
Mr. Butschek is the present CEO and MD of Tata Motors. His responsibility includes managing the Indian operations of Tata Motors, along with its regional and international subsidiaries, except for Jaguar Land Rover.
Mr. Butschek was with Airbus Group before joining Tata Motors, where he served as CEO of Airbus for more than four years. He has begun his career with Daimler AG, where he worked for 25 years and held management positions in production, industrialization, and procurement divisions.
Satish Borwankar - COO and Executive Director
Since 1974, Mr. Borwankar has been associated with Tata Motors. He started working with the company as a graduate engineer trainee, and as the years passed, he handled several responsibilities, manufacturing operations, ranging in the field of product development, and quality control.
In India, Tata Motors Limited is listed, and its shares can be bought and sold on National Stock Exchange, and Bombay Stock Exchange. The Tata Motors is also a part of several other benchmark indices like SENSEX and NIFTY. Three Tata companies are listed on the two significant indices Tata Motors, Tata Steel and TCS. The share price of Tata is considered for calculation of other indices as well such as BSE AllCap, BSE Auto, CNX 100, CNX 200, BSE 200 and many more.
Tata Motors Group recorded its consolidated financial statement for the third quarter of Fiscal 2018. It was reported that the net revenue for the third quarter had increased to Rs.74,156 crore, from Rs.64,943 crore in Q3 FY17.
Regarding the sale of commercial units, a total of 3,32,911 units were sold globally - a 15.6% increase from the same quarter last year.
The company has done exceptionally well regarding profit as well. Its net Jaguar Land Rover, a subsidiary of Tata Motors, showed a 14.2% increment in unit sales in China and 18.2% improvement in the market abroad.
For the free cash flow in the third quarter, a negative Rs.5,159 crore was reported owing to higher investments, lower operating profits, and an increase in working capital in Jaguar Land Rover.
Tata Motors Limited is one of the prominent commercial vehicle and passenger vehicle brands in the world. Their product line is continually improving which is slowly making it a preferred choice in the cars segment among the middle class.
Innovation drives the company's growth in the field of technology and design. It has been working on the hybrid technology for quite some time now and has already implemented the same across its other categories of vehicle. The modifications made by the company at a fundamental level have already begun to gain the required results, as seen in the results of the current fiscal.
The automobile giant has recorded healthy numbers in its third quarter Fiscal 2018 results, along with a convincing increase in revenue. The maximum amount of the revenue comes from the Asian markets like India and China. Needless to mention, the financial track record of the company is exceptional, and after reporting a profitable growth even in adverse conditions, it is evident that Tata Motors can be trusted to generate consistent returns in the long run.
At the same time, there are other automobile companies in the sector which have the potential to generate higher returns in the long term. Ashok Leyland is one such brand, just because it is considered to be more reliable. It is advisable to look at the performance of the two companies over the years and then arrive at an informed decision.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.