Tata Motors Limited (NYSE:TTM) Q1 2019 Earnings Conference Call - Final Transcript

Jul 31, 2018 • 09:00 am ET


Tata Motors Limited (NYSE:TTM) Q1 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, good day, and welcome to the Tata Motors Q1 FY '19 Earnings Conference Call hosted by Motilal Oswal Securities.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

(Operator Instructions)

Please note that this conference is being recorded. I now hand the conference over to Mr. Jinesh Gandhi from Motilal Oswal Securities. Thank you, and over to you, Sir.

Jinesh Gandhi

Thank you, Raymond. Good evening, everyone. On behalf of Motilal Oswal Securities, I would like to welcome you all to 1Q FY '19 post results conference call of Tata Motors. Tata Motors is represented by Mr. PB Balaji, CFO, Tata Group; Mr. Kenneth Gregor, CFO, Jaguar Land Rover; along with senior management and members of the Investor Relations team.

I would like to thank the management for taking time out for the call. We will start the session with commentary from the management followed by Q&A. I would now hand over the call to Mr. Balaji for his opening remarks.

PB Balaji

Thanks, Jinesh. Good evening, everybody, and apologies for the late start. We had a bit of a technical lapse here but now it has sorted. I also have with me Guenter as well as Ralf on the line, so we have a full house from our side here. Let me quickly cut to the chase. You have already received the investor deck. I am sure you have already downloaded from the website, and let me just talk you through some elements of it.

For starters, this is the safe harbor statement. Just draw your attention to that. And in terms of the new developments of the quarter, it has been quite an action-packed quarter for us with I-Pace going on sale as well as the 18 Model Year Range Rover and Range Rover Sport including the PHEVs actually being launched.

And domestically, of course, the relaunch of Tata Ace Gold, going back to the original version of Tata Ace, and the Nexon Hyperdrive were standouts for us. And the full Nex-Gen Ultra range of trucks has also a good 14-odd trucks got launched simultaneously.

On track to start production, as we shared with you in the Investor Day, on the Slovakia plant as well as a software engineering center in Ireland was launched this quarter. Moving into the market. It has been quite an interesting time for us. While India continues to shine, and we will talk about the Indian domestic business at a greater length later, we did face temporary headwinds in China because of the duty changes that came through.

And at the same time, be it Brexit, be it diesel uncertainty or higher incentives and market cyclicality in the US, those continued this quarter as well. So our performance was impacted by these challenging conditions and what we believe as temporary headwinds as well as a combination of the two.

Moving to slide five, the consolidated results at