Tata Motors 3Q FY04 Review

Tata Motors
3Q FY04 Review
Snapshot
Unconsolidated Financials
3Q FY04 3Q FY03 Change 3Q FY04 (*) 3Q FY03 (**)
(Rs mn) (Rs mn) % (US$ mn) (US$ mn)
Revenue (Net of excise) 33,983 21,941 55% 745 457
EBITDA 4,902 2,870 71% 108 60
EBITDA % 14.4% 13.1% 134 bps
Op. Cash Profit (Pre-Tax) 4,428 2,199 101% 97 46
Extra-ordinary Items (26) - (1) -
Profit / (Loss) before Tax 3,617 1,312 176% 79 27
Net Profit / (Loss) 2,109 757 179% 46 16
Basic EPS (Non-annualised) (Rs) 6.48 2.37
Apr-Dec’03 Apr-Dec’02 Change Apr-Dec’03(*) Apr-Dec’02(**)
(Rs mn) (Rs mn) % (US$ mn) (US$ mn)
Revenue (Net of excise) 90,758 61,010 49% 1,991 1,272
EBITDA 12,606 7,495 68% 277 156
EBITDA % 13.9% 12.3% 161 bps
Op. Cash Profit (Pre-Tax) 11,334 5,352 112% 249 112
Extra-ordinary Items (256) - (6) -
Profit / (Loss) before Tax 8,539 2,780 207% 187 58
Net Profit / (Loss) 5,179 1,625 219% 114 34
Basic EPS (Non-annualised) (Rs) 16.09 5.08
(*) Rate of exchange as on December 31, 2003: 1US$ = Rs 45.59
(**) Rate of exchange as on December 31, 2002: 1US$ = Rs 47.97
Revenues (Net of Excise) (Rs mn)
EBITDA (Rs mn)
EBITDA Margin (%)
40,000
35,000
30,000
25,000
20,000
17,477
25,009
31,766
21,592 21,941
33,983
29,922
6,000
5,000
4,000
3,000
3,316
2,611
4,389
2,870
4,902
3,911
16.0%
14.0%
12.0%
10.0%
8.0%
11.5%
13.3%
12.1%
13.8%
14.4%
13.1% 13.1%
15,000
2,000
2,014
6.0%
10,000
4.0%
5,000
1,000
2.0%
-
1Q 2Q 3Q 4Q
-
1Q 2Q 3Q 4Q
0.0%
1Q 2Q 3Q 4Q
FY03
FY04
FY03
FY04
FY03
FY04
Profit before Tax (Rs mn)
PAT (Rs mn)
4,000
3,500
3,000
3,285
3,617
2,500
2,000
2,067 2,109
2,500
2,336
1,500
1,388
2,000
1,500
1,000
500
389
1,637
1,079
1,312
1,000
500
280
1,003
588
757
-
-
1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q
FY03
FY04
FY03 FY04
This document is also available on www.tatamotors.com

Business Review
Summary
As a part of good corporate governance practice, the Company has declared the Audited results for
the 9-month period ending Dec. 2003. The Company intends to carry this process further and begin
declaring quarterly audited results beginning next quarter.
Tata Motors achieved Net Revenues of Rs 34 bn in 3Q FY04, up 55% YoY on the back of strong
volume growth of 53%.
The Company posted a Net Profit of Rs 2.1 bn during the quarter compared to Rs 757 mn last year,
up 179% YoY.
Profit before Tax (PBT) stood at Rs 3.6 bn; up 176% YoY.
3Q EBITDA saw a growth of 71% to Rs 4.9 bn. EBITDA margin expanded by 134 bps to reach 14.4%
for the quarter.
In line with the commitment to pursue higher dividend payout to shareholders as a means of
utilisation of strong Free Cash Flow, the Company has declared an Interim Dividend of 40%.
While rising commodity prices and change in revenue mix has had some impact on the Company’s
performance, the Company has been able to mitigate the pressures through its ongoing cost reduction
efforts and operating leverage.
Table 1: Volume Summary
3Q FY04 3Q FY03 Change Apr-Dec’03 Apr-Dec’02 Change
Commercial Vehicles 40,485 27,692 46% 104,616 72,612 44%
Passenger Vehicles 30,244 21,903 38% 97,217 68,428 42%
Total Domestic Sales 70,729 49,595 43% 201,833 141,040 43%
Exports 7,651 1,553 393% 15,068 5,982 152%
Total Volumes 78,380 51,148 53% 216,901 147,022 48%
The volumes in 3Q saw a sharp growth on the back of
• market share gains in CVs as well as PVs
• consolidation of recently launched products (207 DI, Indigo)
• increase in exports volumes
• improved performance of the economy
During the quarter, the Company improved its market share in CVs to 59.3% (+140 bps) and in PVs
to 14.1% (+70 bps). YTD, the Company’s market shares stand at 58.8% (+340 bps) in CVs and
15.5% (+180 bps) in PVs.
The Company’s revenue from non-cyclical business has increased to 15% of Net Revenue during Apr-
Dec 2003 compared to 13% for the full fiscal 2003.
The key subsidiaries posted a combined Profit before Tax of Rs 272 mn during the quarter compared
to a loss of Rs 68 mn last year.

Economic Scenario
The GDP growth of 8.4% in 2Q FY04 exceeded expectations, driven by a strong performance in agriculture
(+7.4%) and continued buoyancy in industry (+6.3%) and services (+9.9%). This has strengthened the
prospects of over 7% growth in GDP in the current fiscal.
The recovery witnessed by the industrial economy was sustained (+6.2%) during Apr-Nov. 2003 on the
back of 6.8% growth in the Manufacturing sector.
Table 2: Macro Economic Indicators
Growth (%) Categories Apr -Nov’03 Apr -Nov'02
IIP General 6.2% 5.4%
Sectoral Mining 3.9% 5.8%
Mfg. 6.8% 5.6%
Electricity 3.1% 4.0%
Use-based Basic 4.5% 4.8%
Capital 8.9% 10.4%
Intermediate 5.2% 2.6%
Consumer 8.0% 7.5%
Consumer Durables 7.7% -6.0%
Consumer Non-Durables 8.2% 12.9%
Source: CSO
National Highway Development Project (NHDP)
The implementation of Phase-I of the NHDP (Golden Quadrilateral project (GQ) - 5,846 km) is on
schedule. Around 2,400 km (41% of the total length under GQ) has been completed by end-Dec. 2003.
With the recent approval of the funding plan, Phase II of the NHDP - NSEW corridor (7,300 km) and other
projects - should see a pick up in the award of contracts in the coming months.
Table 3: Status of the NHDP Project as on Dec. 31, 2003
Total length Date of Completed Under Balance to
(In kms) completion Implementation be awarded
GQ 5,846 Dec-04 41% 58% 1%
NSEW 7,300 Dec-07 8% 6% 86%
Port Connectivity & Others 1,016 Dec-07 21% 27% 52%
Total 14,162 22% 29% 49%
Key positives for the economy in FY04
• Upturn in agriculture; multiplier effect on the economy
• Sustained growth in industry and services, with inflation under control
• Infrastructure development on track
• Continuation of soft interest rate regime
• Buoyancy in Capital Goods - domestic production (+8.9%) as well as imports (+23%) - an
indicator of pickup in economic activity
• Strong Consumer demand (+8.0%)
• Expansion in Non-Food Credit by over 16% (by end-Nov 2003)
• Forex reserves of over US$100 bn to provide cushion against external shocks
Areas of concern
• Steep increase in input prices (Steel, Rubber, etc)
• Rise in domestic fuel prices by around 13% in last six months

Outlook
‣ Sustained economic growth has fuelled demand in the current fiscal. The Company has been able to
capture the benefits of the strong growth and improve its market share by introducing products to
match the needs of the customers in high volume segments.
‣ However, going forward, the following factors can have an impact on demand:
• Economic growth not keeping pace with expansion in CV fleet size.
• Further increases in fuel prices, which are nearly at the peak levels of Mar. 2003.
• Political uncertainty due to the advancement of elections.
‣ Input prices (especially Steel, Rubber) have seen a sharp rise in the current fiscal and continue to be
a cause for concern. Consequently, the Company has recently increased prices of some of its products
in Jan. 2004. The Company is exploring opportunities for further reduction in costs and is working
jointly with its vendors to counter the impact of these cost pressures.
‣ Increasing proportion of exports in revenues, going forward, may also have some impact on operating
margins.
‣ Tata Motors has entered into a Memorandum of Understanding with Daewoo Commercial Vehicle Co.
Ltd, Korea (DWCV) for acquisition of the company. The due diligence process is currently under way.

Commercial Vehicles
Domestic volume growth of 46% in 3Q FY04
Strong growth in both, haulage and passenger segments
Market share in 3Q FY04 at 59%; gain of 140 bps
Significant gain in LCV market share in 3Q FY04 (+490 bps)
Exports volumes expand 170% during the quarter
CV Domestic Business
The Company registered domestic CV sales of 40,485 units during the quarter with volume increases in
both M/HCV & LCV segments.
Table 4: CV Domestic Sales Volumes
3Q FY04 3Q FY03 Change Apr-Dec’03 Apr-Dec’02 Change
M/HCV 27,995 19,394 44% 70,481 50,064 41%
LCV 12,490 8,298 51% 34,135 22,548 51%
Total CV 40,485 27,692 46% 104,616 72,612 44%
Table 5: CV Market Shares
3Q FY04 3Q FY03
Apr-Dec’03 Apr-Dec’02
M/HCV 66% 67% 65% 65%
LCV 49% 44% 50% 42%
Total CV 59% 58% 59% 55%
‣ M/HCV truck growth was sustained in 3Q (+50% YoY). The key growth drivers were
consistent improvement in the economy, strong performance in agriculture, low cost retail
finance and continued spending on infrastructure. Apart from these factors, replacement of
old vehicles to meet emission norms in certain markets also contributed to higher truck
demand.
−
The buoyancy in HCV truck sales continued during the quarter, with a volume growth of
60% YoY
− MCV truck sales grew by 44% YoY while ICV truck volumes were up 48% YoY in 3Q.
‣ While the average diesel price in 3Q increased by 2.4% sequentially, the Company’s
benchmark freight rate index was up 3%. With a further hike in Jan. 2004, fuel prices are
back to the high of Mar. 2003. This may have an adverse impact on transporters’ profitability.
However, availability of freight (led by strong performance in agriculture and industry) and
low cost finance continue to be key positives for the transporters.
‣ The M/HCV bus segment witnessed a modest growth of 15% in 3Q. Backed by growth in the
STU as well as private segment, YTD sales are up 33%, translating into a market share of
52% (+260 bps).
‣ In the LCV segment, the Company consolidated its position during the quarter with a market
share of 49% (+490 bps) while registering gains in all the segments.
− In the Pick-up segment (the fastest growing segment among LCVs), the 207DI registered
a market share of 34% in 3Q FY04.
−
−
In the rest of the LCV truck market, the Company’s volumes grew by 21%. The market
share expanded from 66% to 68% during the quarter. Following the recent launch of the
407 EX truck offering higher fuel efficiency and payload, the Company expects to further
consolidate its position in the coming months.
The Company’s volumes in the LCV Bus segment were up 28% against industry growth of
6% during the quarter. The success of the City Ride Bus (4T Fully Built bus launched end-
FY03) helped the Company improve its market share to 39% (+680 bps) during 3Q.
‣ The Company plans to introduce a new range of fully-built buses (12-60 seater) with
contemporary design and technology, improved fuel efficiency and driving comfort by the end
of the current fiscal.
‣ The Company has also developed comprehensive transport solutions for various industry
sectors such as cement.

CV International Business
The Company’s CV exports grew by 170% to 2,969 units during the quarter.
Table 6: CV Exports Volumes
3Q FY04 3Q FY03 Change Apr-Dec’03 Apr-Dec’02 Change
M/HCV 1,248 446 180% 3,092 1,878 65%
LCV 1,721 655 163% 4,215 2,517 67%
Total CV 2,969 1,101 170% 7,307 4,395 66%
‣ Tata Motors has entered into a Memorandum of Understanding with Daewoo Commercial
Vehicle Co. Ltd, Korea for acquiring the company. The due diligence process is in process.
‣ The Company is also exploring opportunities in markets like China, CIS countries, and SE Asia
for its CVs.
‣ During the quarter, exports of Pickups were up on the back of increased shipments to
European and SE Asian markets

Passenger Vehicles
Tata Motors domestic volumes up 38% against industry growth of 31%
Market share improved to 14% during the quarter from 13% last year. YTD market share of 15.5%
Indigo - market leader in its segment in CY03. Cumulative sales cross the 25,000 mark
Strong domestic sales growth in MUVs (+41% YoY) and market share gain during 3Q FY04
Exports of City Rover to UK commenced in 3Q FY04
PV Domestic Business
The Company retained its position as the second largest player in the PV market with a sale of 30,244
units during the quarter.
Table 7: PV Domestic Sales Volumes
3Q FY04 3Q FY03 Change Apr-Dec’03 Apr-Dec’02 Change
Passenger Car 23,097 16,837 37% 76,216 51,842 47%
MUV 7,147 5,066 41% 21,001 16,586 27%
Total PV 30,244 21,903 38% 97,217 68,428 42%
Table 8: PV Market Shares
3Q FY04 3Q FY03 Apr-Dec’03 Apr-Dec’02
Passenger Car 14% 14% 16% 13%
Compact Car 20% 24% 22% 24%
Entry-level Mid-size Car 25% 3% 26% 1%
MUV 20% 19% 21% 21%
Total PV 14% 13% 16% 14%
‣ The Company’s 3Q FY04 PV volumes were up 38% YoY, outperforming the industry growth of
31%. The Company’s market share improved to 14% (+70 bps) in 3Q FY04 compared to last
year.
‣ In the passenger car segment, the Company registered growth of 37% on the back of robust
sales of Indigo for 3Q FY04. Indigo achieved a market share of 25% in the entry-level C
segment to maintain its position among the leading brands in its segment.
‣ Due to the product mix changes, higher exports and efforts undertaken to ramp up
production at the Car plant in 3Q, Indica volume growth was marginal during the quarter.
‣ Indica continues to be among the top two brands in the compact car segment. The popularity
of the Indica is reflected in the NFO Automotive - Total Customer Satisfaction Study 2003,
where it was adjudged the Best Diesel Small Car.
The Indica Diesel also retained its top ranking at the NFO Automotive Cost of Ownership
Study 2003 with an operating cost of Rs 2 per km against the next best figure of Rs 2.31 per
km.
Indica DLX won the “Best car award” in the Rs.3 lakh - Rs.5 lakh category at the BBC World’s
"Wheels 2003".
‣ With the launch of the new Indica V2 in January 2004, the Company expects to consolidate its
position in the Compact Car segment.
‣ The Company also recently unveiled a station wagon, Indigo Marina.
‣ Reduction in excise duty, low cost finance and better agri-economy have boosted MUV sales
in the current fiscal. The Company’s MUV sales were up 41% YoY in 3Q, exceeding the
industry growth of 30% due to increased consumer acceptance of new variants. The
Company’s market share in the MUV segment improved to 20% (+160 bps) during the
quarter.
Safari, which has registered a strong volume growth this fiscal, was ranked highest in the
MUV-SUV category in the JD Power APEAL Study 2003.

PV International Business
The Company’s PV exports during the quarter surged 936% YoY to 4,682 units.
Table 9: PV Exports Volumes
3Q FY04 3Q FY03
Change Apr -Dec’03 Apr-Dec’02 Change
Passenger Car 4,382 403 987% 6,132 1,251 390%
MUV 300 49 512% 1,629 336 385%
Total PV 4,682 452 936% 7,761 1,587 389%
‣ The shipments of Passenger Cars to MG Rover commenced in 3Q FY04 with over 4,000 cars
being exported during the quarter.
‣ Safari exports continued to register strong growth on account of increased shipments to
European countries.

Finance
‣ In its drive to adopt good corporate governance practices, the Company has released the Audited
results for the 9-month period ending Dec. 2003. The Company will continue this process further by
announcing Audited quarterly results beginning next quarter.
‣ Gross Interest cost has been brought down by 33% to Rs 527 mn through restructuring of the debt
portfolio, benefit of lower interest rates and strong operating cash flows.
‣ The Company divested its holding in Tata Infomedia during the quarter. The profit of Rs 41 mn from
this divestment is included in 3Q FY04 Other Income. Rest of the Other Income during the quarter
pertains to dividend income.
‣ The Company continues to pay Minimum Alternate Tax (MAT) due to tax shields available from the
past operations.
‣ The Company’s balance sheet stood at Rs 50.7 bn as on Dec. 31, 2003 compared to Rs 41.6 bn as on
Mar 31, 2003. This increase is primarily on account of surplus investible funds of around Rs 12.4 bn as
on Dec. 31, 2003.
‣ The Company retired expensive debt worth Rs 2.1 bn during 3Q. With this, the total debt repaid in the
current fiscal stood at Rs 6 bn.
‣ The gross total debt (inc. FCCBs) was Rs 14.1 bn as on Dec. 31, 2003. Net Debt of the Company (Net
of the surplus investible funds) was Rs 1.7 bn. Net Debt : Equity stood at 0.05 as on Dec. 31, 2003.
‣ Continued focus on management of inventory and receivables has helped the Company maintain a
negative Net Working Capital position.
Table 10: Working Capital
No. of Days Dec. 31, 2003 March 31, 2003 Dec. 31, 2002
Inventory 35 39 40
Receivables (non-HP) 14 18 19
‣ The Company has incurred capital expenditure (including product development) of around Rs 1.8 bn
during Apr-Dec 2003.
‣ The Company had raised US$ 100 mn by way of FCCBs in the international markets in 2Q FY04.
Around 38% of the outstanding FCCBs have been converted into GDSs till end-Dec. 2003 at a
premium of Rs 240.745 per share, resulting in an increase of 7 mn in the Company’s outstanding
equity shares in the current fiscal.
‣ During its Rights Issue in FY02, the Company had issued 25.5 mn warrants. Since the opening of the
conversion period in June 2003, around 3.5 mn of these warrants have been converted at a premium
of Rs 110 per share.
Key Subsidiary Companies – Performance
Table 11: Key Subsidiary Financials
Subsidiary Net Turnover (Rs mn) PBT (Rs mn)
3Q FY04 3Q FY03 3Q FY04 3Q FY03
Telco Construction Equipment Co. Ltd (Telcon) 1628 1187 104 (79)
Tata Technologies Ltd (TTL) 350 249 13 52
HV Transmissions Ltd (HVTL) 277 194 86 17
HV Axles Ltd (HVAL) 304 236 123 32
TAL Mfg Solutions Ltd (TAL) 89 161 (54) (89)
‣ The combined turnover of the key subsidiaries during the quarter was up 31% YoY to Rs 2.6bn.
‣ These subsidiaries posted a combined Profit before Tax of Rs 272 mn in 3Q compared to a loss of Rs
68 mn last year.

‣ The combined debt of the subsidiaries as on Dec 31, 2003 stood at Rs 2.8 bn, down from Rs 4 bn as
on Mar 31, 2003.
‣ The combined Capital Employed has been brought down by 16% during the fiscal.
Shareholding Pattern
Table 12: Shareholding Pattern as on 31 st December, 2003
%
Tata Group 31%
Daimler Chrysler 8%
Indian Financial Institutions / M Fs / Banks 15%
GDR Holders / Foreign holders –DR status 7%
Foreign Institutional Investors 22%
Others 17%
Total 100%
In Jan. 2004, the Company received the approval of its shareholders to raise the limits for investment by
Foreign Institutional Investors from 24% to 35% of the paid-up capital of the Company.
Investor Relations Contacts
Dharmendra Grover
Radhika Koppikar
3 rd Floor, Nanavati Mahalaya, 3 rd Floor, Nanavati Mahalaya,
Homi Mody Street,
Homi Mody Street,
Fort,
Fort,
Mumbai – 400 001 Mumbai – 400 001
India
India
Phone: 91-22-5665 7237 Phone: 91-22-5665 7230
Fax: 91-22-5665 7788 Fax: 91-22-5665 7788
Email: dgrover@tatamotors.com
Email: rvk@tatamotors.com
Disclaimer
Statements in this presentation describing the Company’s objectives, projections, estimates, expectations
may be “forward looking statements” within the meaning of applicable securities laws and regulations.
Actual results could differ materially from those expressed or implied. Important factors that could make a
difference to the Company’s operations include, among others, economic conditions affecting demand /
supply and price conditions in the domestic and overseas markets in which the Company operates,
changes in Government regulations, tax laws and other statutes and incidental factors.