2 thoughts on “Tata Motors Ltd.”

  1. Aditya Srivastav

    Some brief points about the company financials:

    – Revenue Growth Rate is on an average 4%
    – Profit Capture is very low and the company is making losses since last 5 years and has a small profit margin in the recent years
    – Cost Management is quite inefficient. To generate ₹1 the company is spending ₹1.5-₹2.
    – Debt to Equity is very High i.e., 2.96 which means that the company is more dependent on external finance.

    Trend Study
    – Considering the linear trend for the company the expected revenue for the current period will be ₹319077 which will be a decrease in revenue from last year. The fall in revenue will be 8%.

    Adjusting for the inflation (4.25%) and the other non monetary factors which are impacting the company operations, we can expect the revenue to be ₹340000 crores in the year 2024.

    Future operations of the company in short term should be focused upon making the cost control function a success. This will include the change in operations processes and eliminating the activities which have less or negative yield.

     

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