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Q2FY2025 Results of Tata Capital

Event Date: N/A

Document Summary

The document is a notification from Tata Capital Limited to the Bombay Stock Exchange (BSE) Limited and the National Stock Exchange of India Ltd. regarding the outcome of a board meeting and disclosure of related party transactions, as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting was held on October 25, 2024.

Key Highlights:

  • Financial Results Approved: The Board of Directors considered and approved the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2024. These results, along with Limited Review Reports from MSKA & Associates and M P Chitale & Co. (Joint Statutory Auditors), are enclosed.
  • Security Cover Certificate: A Security Cover Certificate, as required by Regulation 54, is annexed to the Unaudited Financial Results.
  • Utilization of Issue Proceeds: A statement indicating the utilization of issue proceeds of Non-Convertible Debentures (NCDs) and a statement indicating Nil deviation and variation are annexed to the Unaudited Financial Results, as per Regulations 52(7) and 52(7A).
  • Related Party Transactions: Disclosure of Related Party Transactions for the half year ended September 30, 2024, is enclosed as per Regulation 23(9).

Auditor's Review Report (Standalone):

  • MSKA & Associates and M.P. Chitale & Co. reviewed the standalone financial results of Tata Capital Limited. The review was conducted according to the Standard on Review Engagements (SRE) 2410 issued by the Institute of Chartered Accountants of India. Based on their review, nothing came to their attention that indicated the Statement contained any material misstatement or did not comply with Regulation 52.
  • The report mentions Note 10, addressing restated/regrouped figures for September 30, 2023, to account for the merger of Tata Capital Financial Services Limited (TCFSL) & Tata Cleantech Capital Limited (TCCL) with the Company, effective April 1, 2023.
  • The Statement includes the standalone financial results for the year ended March 31, 2024, which were jointly audited previously and expressed an unmodified opinion.

Statement of Unaudited Standalone Financial Results:

  • Revenue: Total revenue from operations amounted to ₹4,228.19 crore for the quarter ended September 30, 2024. This was comprised primarily of interest income (₹3,649.84 crore), fees and commission income (₹391.26 crore), and net gain on fair value changes (₹44.16 crore). Total Income was ₹4,230.06 crore after accounting for other income.
  • Expenses: Total expenses were ₹3,434.94 crore, with finance costs being the most significant component (₹2,063.04 crore). Impairment on financial instruments was ₹407.17 crore and employee benefit expenses amounted to ₹530.30 crore.
  • Profitability: Profit before tax was ₹795.11 crore, and profit for the period was ₹596.17 crore after accounting for tax expenses (₹198.95 crore).
  • Other Comprehensive Income: Total Other Comprehensive Income was ₹73.18 crore.
  • Earnings Per Share: Basic and diluted earnings per share were both ₹1.59 (not annualized).
  • Key Ratios: The debt-equity ratio was 5.15. Gross and Net Non-Performing Assets were 1.89% and 0.52%, respectively, and the Provision Coverage Ratio was 72.72%.
  • Asset and Liability Statement: Total Assets amounted to ₹1,32,111.27 crore. Financial assets were ₹1,29,283.48 crore, with loans constituting a significant portion. Total Equity was ₹21,005.46 crore, comprising Share Capital and Other Equity.
  • Cash Flow Statement: Net cash used in operating activities was ₹(10,981.58) crore, while net cash used in investing activities was ₹1,865.43 crore and net cash generated from financing activities was ₹6,281.43 crore.
  • Segment Reporting: The company operates under three segments: Financing Activity, Investment Activity, and Others.
  • Details of utilization of issue proceeds and deviation/variation in use of proceeds provided.

Auditor's Review Report (Consolidated):

  • MSKA & Associates and M.P. Chitale & Co. reviewed the consolidated financial results of Tata Capital Limited. Based on their review, nothing came to their attention that caused them to believe that the accompanying Statement contained any material misstatement.
  • The Statement includes financial results of subsidiaries and associates, some reviewed by other auditors, and the conclusion relies on their reports.

Statement of Unaudited Consolidated Financial Results:

  • Revenue: Total Revenue was ₹5,985.63 crore.
  • Profit: Profit for the period/year was ₹1,021.75 crore.
  • Earnings Per Share: Basic and diluted earnings per share were both ₹2.58 (not annualized).
  • Details related to segment reporting, debt equity ratio and other financial metrics are disclosed.

Other Key Information:

  • Scheme of Arrangement: A scheme of arrangement for the amalgamation of Tata Motors Finance Limited (TMFL) into Tata Capital Limited is under approval by the National Company Law Tribunal (NCLT).
  • Details of loans transferred/acquired: Details provided as per the RBI Master Direction of Transfer of Loan Exposures.
  • Details of related party transactions for the half year ended September 30, 2024. This includes loans, interest income/expense, investments.

The notification also includes annexures detailing utilization of issue proceeds, deviations in use of funds, security cover, and related party transactions. Specific financials and ratios are provided, along with details of subsidiary and associate companies.

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