This document provides financial performance analysis for Tata Motors for the years 2021 to 2017. It includes various ratio analyses like liquidity ratios, solvency ratios, profitability ratios and return on investment ratios. Key ratios discussed are current ratio, debt equity ratio, net profit ratio, earnings per share, debtors turnover ratio and return on equity. Ratio values for each year are presented to analyze the trend. The document aims to evaluate Tata Motors' financial position and performance over the period through ratio analysis.

1. SARVAJANIK UNIVERSITY
S.R. LUTHRA INSTITUTE OF MANAGEMENT
SUBJECT: ACCOUNTING FOR FINANCIAL MANAGEMENT
TOPIC: FINANCIAL PERFORMANCE REPORT
CLASS:MBA FY
DIV: A
GROUP NO:5
SUBMITTEDTO:DR DELNAZVARIAVA
SUBMITTED BY:
AYUSH CHOTHANI 14
VAISHNAVI DESHMUKH 20
NEHA DHANUKA 21
SAVAN GARDHARIYA 28
KAJAL GUPTA 33

2. Tata Motors
Tata Motors Limited is an Indian multinational automotive manufacturing company,
headquartered in the city of Mumbai, India which is part of Tata Group. The company produces
passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, construction equipment.
Formerly known as Tata Engineering and Locomotive Company (TELCO), the company was
founded in 1945 as a manufacturer of locomotives. Tata Motors has auto manufacturing and
vehicle plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well
as in Argentina, South Africa, the United Kingdom, and Thailand.On 17 January
2017, Natarajan Chandrasekaran was appointed chairman of the company Tata Group.
Industry Automotive
Founded 1945; 76 years ago
Founder J. R. D. Tata
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Natarajan Chandrasekaran (Chairman)
Services Automotive finance, Vehicle leasing, Vehicle service
No. of employees 78,906 (2021)
Parent Tata Group
Products Automobiles, Luxury vehicles, Commercial vehicles,
Automotive parts, Pickup trucks, SUVs
Subsidiaries Tata Daewoo, Jaguar Land Rover, Tata Technologies, Tata
Hispano, Tata Hitachi Construction Machinery

3. TREND ANALYSIS
Trend analysis is a technique used in technical analysis that attempts to predict future stock
price movements based on recently observed trend data. Trend analysis uses historical data,
such as price movements and trade volume, to forecast the long-term direction of market
sentiment.
Trend analysis tries to predict a trend, such as a bull market run, and ride that trend until data
suggests a trend reversal, such as a bull-to-bear market. Trend analysis is helpful because
moving with trends, and not against them, will lead to profit for an investor. It is based on the
idea that what has happened in the past gives traders an idea of what will happen in the future.
There are three main types of trends: short-, intermediate- and long-term.
A trend is a general direction the market is taking during a specified period of time. Trends can
be both upward and downward, relating to bullish and bearish markets, respectively. While
there is no specified minimum amount of time required for a direction to be considered a trend,
the longer the direction is maintained, the more notable the trend.

4. Mar
'21
Mar '20 Mar '19 Mar '18 Mar '17
Investment Valuation Ratios
Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 3.90 -1.81 14.55 9.74 4.74
Net Operating Profit Per Share (Rs) 122.84 122.11 203.79 173.24 130.50
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 14.53 15.46 16.38 16.38 16.38
Profitability Ratios
Operating Profit Margin(%) 3.17 -1.48 7.13 5.62 3.63
Profit Before InterestAnd Tax Margin(%) -4.57 -8.88 2.56 0.34 -3.14
Gross Profit Margin(%) -4.65 -9.16 2.66 0.35 -3.21
Cash Profit Margin(%) -0.22 -3.09 7.41 5.02 2.08
Adjusted Cash Margin(%) -0.22 -3.09 7.41 5.02 2.08
Net Profit Margin(%) -5.09 -16.59 2.91 -1.75 -5.48
Adjusted Net Profit Margin(%) -5.00 -16.08 2.81 -1.71 -5.36
Return On Capital Employed(%) -3.54 -6.72 11.07 4.84 -1.11
Return On Net Worth(%) -12.57 -41.60 9.11 -5.13 -11.48
Adjusted Return on Net Worth(%) -19.87 -27.27 10.03 -0.33 -9.88
Return on Assets Excluding Revaluations 49.77 48.70 65.26 59.40 62.32
Return on Assets Including Revaluations 49.77 48.70 65.26 59.40 62.32
Return on Long Term Funds(%) -3.80 -8.18 12.18 5.29 -1.27
Liquidity And Solvency Ratios
CurrentRatio 0.56 0.46 0.54 0.57 0.53
Quick Ratio 0.49 0.53 0.51 0.44 0.42
Debt Equity Ratio 0.99 1.19 0.79 0.81 0.89
Long Term Debt Equity Ratio 0.86 0.84 0.63 0.65 0.65
Debt Coverage Ratios
InterestCover -0.57 -1.34 2.45 1.01 -0.28
Total Debt to Owners Fund 0.99 1.19 0.79 0.81 0.89
Financial Charges Coverage Ratio 0.99 0.37 4.18 2.79 1.65
Financial Charges Coverage Ratio Post
Tax
1.55 -0.98 3.85 2.18 1.39
Management Efficiency Ratios
Inventory Turnover Ratio 10.33 11.46 14.84 10.52 8.83
Debtors Turnover Ratio 23.14 16.80 20.56 20.98 21.24
Investments Turnover Ratio 1.24 1.14 1.74 10.52 8.83
Fixed Assets Turnover Ratio 1.12 1.07 1.86 1.65 1.30
Total Assets Turnover Ratio 1.50 1.31 1.94 1.78 1.19
AssetTurnover Ratio 1.22 1.11 1.82 1.54 1.14
Average Raw Material Holding -- -- -- -- --
Average Finished Goods Held -- -- -- -- --
Number ofDays In Working Capital
-
121.03
-111.25 -60.37 -76.91 -83.22
Profit & Loss Account Ratios
Material CostComposition 76.37 73.55 73.82 72.21 72.77
Imported Composition ofRaw Materials
Consumed
-- -- -- -- --
Selling Distribution CostComposition 0.94 1.92 1.06 1.22 1.91
Expenses as Composition ofTotal Sales 4.63 7.15 -- 9.21 --
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit -- -- -- -- --
Dividend Payout Ratio Cash Profit -- -- -- -- --

5. Earning Retention Ratio 100.00 100.00 100.00 100.00 100.00
Cash Earning Retention Ratio -- -- 100.00 100.00 100.00
AdjustedCash Flow Times -- -- 3.29 5.36 19.92
Mar
'21
Mar '20 Mar '19 Mar '18 Mar '17
Earnings Per Share -6.26 -20.26 5.95 -3.05 -7.15
Book Value 49.77 48.70 65.26 59.40 62.32

6. VERTICAL ANALYSIS
Vertical analysis is a method of financial statement analysis in which each line item is listed as
a percentage of a base figure within the statement. Thus, line items on an income statement can
be stated as a percentage of gross sales, while line items on a balance sheet can be stated as a
percentage of total assets or liabilities, and vertical analysis of a cash flow statement shows
each cash inflow or outflow as a percentage of the total cash inflows.
Vertical analysis makes it much easier to compare the financial statements of one company
with another, and across industries. This is because one can see the relative proportions of
account balances. It also makes it easier to compare previous periods for time series analysis,
in which quarterly and annual figures are compared over a number of years, in order to gain a
picture of whether performance metrics are improving or deteriorating.
For example, by showing the various expense line items in the income statement as apercentage
of sales, one can see how these are contributing to profit margins and whether profitability is
improving over time. It thus becomes easier to compare the profitability of a company with its
peers.
COMMON SIZE /VERTICAL ANALYSIS
PARTICULARS 2021 2020 2019 2018 2017
Sales 100 100 100 100 100
Other Income 0.42 0.23 0.32 0.38 0.3
Total Income 100.8 100.2 100.3 100.3 100.3
Total Expenditure 94.08 89.63 93.05 94.73 94.29
EBIT 6.33 10.59 7.26 5.65 6.02
Interest 4.25 4.73 3.4 3.57 3.54
Tax 0.79 2 1.79 1.34 1.24
Net Profit 1.28 3.85 2.06 0.71 1.21

7. RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by studying its financial statements such as thebalance sheet and
income statement. Ratio analysis is a cornerstone of fundamental equity analysis.
Investors and analysts employ ratio analysis to evaluate the financial health of companies by
scrutinizing past and current financial statements. Comparative data can demonstrate how a
company is performing over time and can be used to estimate likely future performance. This
data can also compare a company's financial standing with industry averages while measuring
how a company stacks up against others within the same sector.
Investors can use ratio analysis easily, and every figure needed to calculate the ratios is found
on a company's financial statements.
The various kinds of financial ratios available may be broadly grouped into the following:
 Liquidity Ratios
 Solvency Ratios
 Profitability Ratios
 Return On Investment

8. LIQUIDITY RATIOS
Liquidity ratios measure a company's ability to pay off its short-term debts as they become due,
using the company's current or quick assets. Liquidity ratios include the current ratio, quick
ratio, and working capital ratio.
Current Ratio: -
The current ratio is a liquidity ratio that measures a company’s ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
CURRENT RATIO=
CURRENT ASSETS
CURRENTLIABILITIES
0.56
0.46
0.54
0.57
0.53
0
0.1
0.2
0.3
0.4
0.5
0.6
2021 2020 2019 2018 2017
CURRENT RATIO

9. SOLVENCY RATIOS
Also called financial leverage ratios, solvency ratios compare a company's debt levels with its
assets, equity, and earnings, to evaluate the likelihood of a company staying afloat over the
long haul, by paying off its long-term debt as well as the interest on its debt. Examples of
solvency ratios include: debt-equity ratios, debt-assets ratios, and interest coverage ratios.
Debt Equity Ratio: -
The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is
calculated by dividing a company’s total liabilities by its shareholder equity. The D/E ratio is
an important metric used in corporate finance. It is a measure of the degree to which a company
is financing its operations through debt versus wholly owned funds. More specifically, it
reflects the ability of shareholder equity to cover all outstanding debts in the event of a business
downturn. The debt-to-equity ratio is a particular type of gearing ratio.
DEBT/EQUITY =
TOTAL LIABILITIES TOTAL
SHAREHOLDERSEQUITY
0.99
1.19
0.79 0.81
0.89
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2021 2020 2019 2018 2017
DEBT RATIO

10. ROFITABILITY RATIOS
These ratios convey how well a company can generate profits from its operations. Profit
margin, return on assets, return on equity, return on capital employed, and gross margin ratios
are all examples of profitability ratios.
 Net Profit Ratio: -
The net profit margin, or simply net margin, measures how much net income or profit is
generated as a percentage of revenue. It is the ratio of net profits to revenues for a company
or business segment. Net profit margin is typically expressed as a percentage but can also be
represented in decimal form. The net profit margin illustrates how much of each dollar in
revenue collected by a company translates into profit.
NETPROFIT RATIO =
REVENUE −COGS −EBIT
REVENUE
∗ 100
-0.59
-16.59
2.91
-1.75
-5.48
-20
-15
-10
-5
0
5
2021 2020 2019 2018 2017
NET PROFITRATIO

11.  Earnings Per Share: -
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares
of its common stock. The resulting number serves as an indicator of a company's profitability.
It is common for a company to report EPS that is adjusted for extraordinary items and potential
share dilution.
EARNINGSPER SHARE =
NET INCOME −PREFERRED DIVIDENDS
SHARE OUTSTANDINGS
-6.26
-20.26
5.95
-3.05
-7.15
-25
-20
-15
-10
-5
0
5
10
2021 2020 2019 2018 2017
EARNING PER SHARERATIO

12.  Debtors Turnover Ratio: -
The receivables turnover ratio is an accounting measure used to quantify a company's
effectiveness in collecting its accounts receivable, or the money owed by customers or clients.
This ratio measures how well a company uses and manages the credit it extends to customers
and how quickly that short-term debt is collected or is paid. A firm that is efficient atcollecting
on its payments due will have a higher accounts receivable turnover ratio.
DEBTORSTURNOVER RATIO =
SALES
AVERAGE ACCOUNTSRECEIVABLES
23.14
16.8
20.56 20.98 21.24
0
5
10
15
20
25
2021 2020 2019 2018 2017
DEBTORS TURNOVER RATIO

13. RETURN ON INVESTMENT
Return on investment (ROI) is a performance measure used to evaluate the efficiency or
profitability of an investment or compare the efficiency of a number of different investments.
ROI tries to directly measure the amount of return on a particular investment, relative to the
investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the
cost of the investment. The result is expressed as a percentage or a ratio.
RETURN ON INVESTMENT
CURRENT VALUE OF INVESTMENT − COST OF INVESTMENT
=
COST OF INVESTMENT
"Current Value of Investment” refers to the proceeds obtained from the sale of the investment
of interest. Because ROI is measured as a percentage, it can be easily compared with returns
from other investments, allowing one to measure a variety of types of investments against one
another.
 Return On Equity: -
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company’s assets
minus its debt, ROE is considered the return on net assets. ROE is considered a gauge of a
corporation's profitability and how efficient it is in generating profits.
RETURN ON EQUITY =
NETINCOME
AVERAGE SHAREHOLDERS EQUITY
-12.57
-41.6
9.11
-5.13
-11.48
-50
-40
-30
-20
-10
0
10
20
2021 2020 2019 2018 2017
RETURN ON NETWORTH/EQUITY

14.  Return On Capital Employed: -
Return on capital employed (ROCE) is a financial ratio that can be used to assess a company's
profitability and capital efficiency. In other words, this ratio can help to understand how well a
company is generating profits from its capital as it is put to use.
The ROCE ratio is one of several profitability ratios financial managers, stakeholders, and
potential investors may use when analyzing a company for investment.
RETURN ON CAPITAL EMPLOYEED =
EARNING BEFORE INTERESTTAX
CAPITAL EMPLOYEED
-3.54
-6.72
11.07
4.84
-1.11
-8
-6
-4
-2
0
2
4
6
8
10
12
2021 2020 2019 2018 2017
RETURN ON CAPITAL EMPLOYEED

15.  Return On Assets: -
The term return on assets (ROA) refers to a financial ratio that indicates how profitable a
company is in relation to its total assets. Corporate management, analysts, and investors can
use ROA to determine how efficiently a company uses its assets to generate a profit. The metric
is commonly expressed as a percentage by using a company's net income and its average assets.
A higher ROA means a company is more efficient and productive at managing its balance sheet
to generate profits while a lower ROA indicates there is room for improvement.
RETURN ON ASSETS =
NET INCOME
TOTAL ASSETS
49.77 48.7
65.26
59.4
62.32
0
10
20
30
40
50
60
70
2021 2020 2019 2018 2017
RETURN ON ASSETS

16. RATIO ANALYSIS
PARTICULARS 2021 2020 2019 2018 2017
LIQUIDITY RATIOS
CURRENT RATIO 0.56 0.46 0.54 0.57 0.53
SOLVENCY RATIO
DEBT RATIO 0.99 1.19 0.79 0.81 0.89
PROFITABILITY RATIO
NET PROFIT RATIO -0.59 -16.59 2.91 -1.75 -5.48
EARNINGS PER SHARE RATIO -6.26 -20.26 5.95 -3.05 -7.15
DEBTORS TURNOVER RATIO 23.14 16.8 20.56 20.98 21.24
RETURN ON INVESTMENT
RETURN ON NETWORTH/EQUITY -12.57 -41.6 9.11 -5.13 -11.48
RETURN ON CAPITAL EMPLOYEED -3.54 -6.72 11.07 4.84 -1.11
RETURN ON ASSETS 49.77 48.7
0
65.26 59.40 62.32

17. BALANCE SHEET :-
BALANCE SHEET OF TATA MOTORS (in Rs. Cr.) MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 765.81 719.54 679.22 679.22 679.22
TOTAL SHARE CAPITAL 765.81 719.54 679.22 679.22 679.22
Reserves and Surplus 54,480.91 61,491.49 59,500.34 94,748.69 57,382.67
TOTAL RESERVES AND SURPLUS 54,480.91 61,491.49 59,500.34 94,748.69 57,382.67
TOTAL SHAREHOLDERS FUNDS 55,246.72 63,078.53 60,179.56 95,427.91 58,061.89
Minority Interest 1,573.49 813.56 523.06 525.06 453.17
NON-CURRENT LIABILITIES
Long Term Borrowings 93,112.77 83,315.62 70,817.50 61,199.50 60,629.18
Deferred Tax Liabilities [Net] 1,555.89 1,941.87 1,491.04 6,125.80 1,174.00
Other Long Term Liabilities 20,280.99 17,780.94 16,871.09 13,904.33 28,802.14
Long Term Provisions 13,606.76 14,736.69 11,854.85 10,948.44 9,004.46

18. TOTAL NON-CURRENT LIABILITIES 128,556.41 117,775.12 101,034.48 92,178.07 99,609.78
CURRENT LIABILITIES
Short Term Borrowings 21,662.79 16,362.53 20,150.26 16,794.85 13,859.94
Trade Payables 68,179.84 63,626.88 68,513.53 76,939.83 62,532.57
Other Current Liabilities 55,058.52 50,135.60 46,596.89 41,531.29 33,429.25
Short Term Provisions 12,848.03 10,329.04 10,196.75 7,953.50 5,807.76
TOTAL CURRENT LIABILITIES 157,749.18 140,454.05 145,457.43 143,219.47 115,629.52
TOTAL CAPITAL AND LIABILITIES 343,125.80 322,121.26 307,194.53 331,350.51 273,754.36
ASSETS
NON-CURRENT ASSETS
Tangible Assets 86,130.71 84,158.17 72,619.86 73,867.84 59,594.56
Intangible Assets 51,773.18 42,171.91 37,866.74 47,429.57 35,676.20
Capital Work-In-Progress 8,377.14 8,599.56 8,538.17 16,142.94 10,186.83
FIXED ASSETS 158,867.82 161,952.37 142,370.44 161,330.91 128,969.60
Non-Current Investments 5,569.09 5,446.94 6,240.89 5,651.65 5,296.77
Deferred Tax Assets [Net] 4,520.35 5,457.90 5,151.11 4,158.70 4,457.34
Long Term Loans And Advances 1,204.59 782.78 407.42 495.41 753.66

19. Other Non-Current Assets 25,272.59 28,116.96 28,845.64 23,624.55 17,483.92
TOTAL NON-CURRENT ASSETS 196,238.16 202,534.01 183,763.37 195,377.67 157,634.61
CURRENT ASSETS
Current Investments 19,051.19 10,861.54 9,529.83 15,161.10 15,041.15
Inventories 36,088.59 37,456.88 39,013.73 42,137.63 35,085.31
Trade Receivables 12,679.08 11,172.69 18,996.17 19,893.30 14,075.55
Cash And Cash Equivalents 46,792.46 33,726.97 32,648.82 34,613.91 36,077.88
Short Term Loans And Advances 1,749.40 935.25 1,268.70 2,279.66 710.45
OtherCurrentAssets 30,526.92 25,433.92 21,973.91 21,887.24 15,129.41
TOTAL CURRENT ASSETS 146,887.64 119,587.25 123,431.16 135,972.84 116,119.75
TOTAL ASSETS 343,125.80 322,121.26 307,194.53 331,350.51 273,754.36

20. PROFIT & LOSS STATEMENT:-
Tata Motors »
Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 21 Mar 20 Mar 19 Mar 18 Mar 17
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 246,972.17 258,594.36 299,190.59 289,386.25 270,298.08
Less:Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 790.16 4,799.61
Revenue From Operations [Net] 246,972.17 258,594.36 299,190.59 288,596.09 265,498.47
Other Operating Revenues 2,822.58 2,473.61 2,747.81 6,023.09 4,194.04
Total Operating Revenues 249,794.75 261,067.97 301,938.40 294,619.18 269,692.51
Other Income 2,643.19 2,973.15 2,965.31 888.89 754.54
Total Revenue 252,437.94 264,041.12 304,903.71 295,508.07 270,447.05
EXPENSES
CostOf Materials Consumed 141,357.27 152,671.47 181,009.08 171,992.59 159,369.55
Purchase Of Stock-In Trade 12,250.09 12,228.35 13,258.83 15,903.99 13,924.53
Operating And DirectExpenses 5,226.63 4,188.49 4,224.57 3,531.87 3,413.57
Changes In Inventories Of FG,WIP And Stock-In Trade 4,684.16 2,231.19 2,053.28 -2,046.58 -7,399.92
Employee BenefitExpenses 27,648.48 30,438.60 33,243.87 30,300.09 28,332.89
Finance Costs 8,097.17 7,243.33 5,758.60 4,681.79 4,238.01
Depreciation And Amortisation Expenses 23,546.71 21,425.43 23,590.63 21,553.59 17,904.99
Other Expenses 39,189.82 58,826.20 63,144.03 58,998.93 59,340.16
Less:Amounts Transfer To Capital Accounts 12,849.13 17,503.40 19,659.59 18,588.09 16,876.96
Total Expenses 249,151.20 271,749.66 306,623.30 286,328.18 262,246.82
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 3,286.74 -7,708.54 -1,719.59 9,179.89 8,200.23
Exceptional Items -13,761.02 -2,871.44 -29,651.56 1,975.14 1,114.56
Profit/Loss Before Tax -10,474.28 -10,579.98 -31,371.15 11,155.03 9,314.79
Tax Expenses-Continued Operations
CurrentTax 1,710.18 1,893.05 2,225.23 3,303.46 3,137.66
Deferred Tax 831.68 -1,497.80 -4,662.68 1,038.47 113.57
Total Tax Expenses 2,541.86 395.25 -2,437.45 4,341.93 3,251.23
Profit/Loss After Tax And Before ExtraOrdinary Items -13,016.14 -10,975.23 -28,933.70 6,813.10 6,063.56
Profit/Loss From Continuing Operations -13,016.14 -10,975.23 -28,933.70 6,813.10 6,063.56

21. Profit/Loss For The Period -13,016.14 -10,975.23 -28,933.70 6,813.10 6,063.56
Minority Interest -56.29 -95.62 -102.03 -102.45 -102.20
Share Of Profit/Loss Of Associates -378.96 -1,000.00 209.50 2,278.26 1,493.00
Consolidated Profit/Loss After MI And Associates -13,451.39 -12,070.85 -28,826.23 8,988.91 7,454.36
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) -37.00 -35.00 -85.00 26.00 22.00
Diluted EPS (Rs.) -37.00 -35.00 -85.00 26.00 22.00
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0.00 0.00 0.00 0.00 73.00
Source : Dion Global Solutions Limited

22. THANK YOU