About Tata Motor Company
Tata Motors is known as Tata Engineering and Locomotive Company Ltd. (TELCO). It is one of the oldest manufacturers in the country. The company was founded in the year 1945 by Jehangir Ratanji Dadabhoy Tata.
The company is currently headed by Mr. Nataranjan Chandrasekran, who is Non-Executive Director and Chairman, with Mr. P B Balaji, who is Group Chief Financial Officer, Mr. Girish Wagh being the Executive Director, and Mr. O P Bhatt, Ms. Hanne Sorensen, and Ms. Vedika Bhandarkar being the Non-Executive and Independent Director in the company and Chiefs the various Statutory Committees of the Board.
The company has its headquarters in Mumbai, India, and provides the services of its products to the whole world. The parent company of TATA Motors is Tata Group. The company has another division which is known as Tata Motors Cars. The company has many subsidiaries to its name which are –
- Tata Daewoo
- Jaguar Land Rover
- Tata Technologies
- Tata Hispano
- Tata Hitachi Construction Machinery
- Tata Passenger Electric Mobility
Tata Motor Company Presence
The company is not just present in India, but the company has its operations run in all the continents of the world except Antarctica. The company has it’s Research and Development for its Design not only set up in India, but in other countries as well, which include Pune, Coventry in the UK, and Turin in Italy.
The company has had its presence in Middle East countries since 1971, Africa since 1992, and South America since 2009. The company is not just listed on the Indian stock exchange but also listed on New York Stock Exchange. The company not only provides passenger vehicles to its customers but also provides commercial vehicles, providing vehicles for Military purposes, and recently, the company started selling its electric vehicles to the general public.
Currently, the company provides 3 electric cars, which is another variant to some of its electric cars, which include the Tata Nexon, Tigor, and Altro.
Recently, the company has announced that it will increase the prices of its vehicles from 1st April 2022. This news has come after the government has announced the increase in the price of petrol by 80 paise for the general public and for diesel by Rs. 25 for the bulk buyers of diesel.
Tata Motors Market Price
The current market price of the company is 440.35 points after gaining 12.40 points in a day. The share price has fallen once in the past 5 working days while it has risen four times and the gain has been continuous in the first 3 working days before falling and rising again.
The share price of the company has gained 6.45% of its last value in the past week while it has fallen in three months by about 6.41% and if an investor seeks for long term like 3 years, the share price of the company has gained a huge amount of value amounting to 151.05%, which the money earned is huge but the amount is gained for the investors. The company has not paid out dividends to its investors in the previous 2 years.
The shareholding pattern of the company has the promoters its main shareholders as they own 46.40% of the company, while the public shareholding is 25.25% only. The rest of the company is owned by Institutional investors and other holders of the company which is about 28.35% of the company/. The main investors in the company are currently the people promoting the company, with the financial institutions and the general public. The institutional investors, provide a heavy base to a company, as they invest after studying all the details of the company.
Tata Motor Company Financials
Tata Motors standalone financials of the company are (Rs. Crores)-
Year | 2019 | 2020 | 2021 |
Revenue | 69,202 | 43,928 | 47,031 |
Net Profit | 2020 | (7289) | (2395) |
Debt to Equity Ratio | 0.79 | 1.14 | 0.99 |
The company has been in working for so many years. The revenue of the company has gone up and fell as well during the time of covid but the main problem with the company is net profit, as the company is incurring huge losses, during the working. Though the company became profitable in 2019, then the covid hit, took the company towards losses and the company is still in losses.
Tata Motor Company Revenue
The revenue of the company has decreased from 2019 to 2020 by Rs. (25,274) crores which are about 36.52% less as compared to 2019 and in the year 2021. It saw an increase in its revenue as compared to 2020 by Rs. 3,103 Crores which is 7.06% and in the terms of percentage increase of revenue of the company, it has gained in 2021 as compared to 2020.
As far as the net profits of the company are concerned, the net profits have decreased in 2020 from 2019 by Rs. (9,309) crores which is 460.84% less than in 2019 and in 2021 the net profits have increased by Rs. (9,684) crores which is 132.85% more than 2020. The company’s performance had taken a hit in the year 2020 when the pandemic hit the world, and the company is on track to recovery to its position which it had achieved in 2019.
Tata Motor Company Debt Equity
The Debt to Equity ratio of the company over the past 3 years has been both increasing and decreasing. The company has got the situation worse for the ratio from 2019 to 2020. With the company improving it more in 2021, the company made the ratio to 0.99, which is good news for the company and they are improving their conditions over this year. But the current situation of debt to equity is not that good as the ratio is touching the mark of 1, which is normal, but more than 1, it becomes problematic to get a loan from any financial institution.
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