Tata Motors Limited, an Indian automobile manufacturer, had been struggling with decreasing market share and profitability, which was affecting the company's share price. After the appointment of a new chief executive officer in 2016, the company undertook several reorganization programs to revive its financial health and improve its market share. However, it still registered heavy losses in the first nine months of fiscal year 2018-19. Was there more that the company could do to improve the company's competitive position and regain lost investor confidence? Mounting losses and depleting market share had become challenging issues at Tata Motors Limited (Tata Motors), the India-based leading global automobile manufacturer. In 2017, expressing his concern over the mounting losses, Natarajan Chandrasekaran, the chairman of Tata Sons Limited, the parent company of Tata Motors, said in an interview with the Economic Times, “In passenger cars, our cost structures are out of whack. Every single car and model is losing money. It’s important to pick up volumes and try to become profitable.”

Required: 

Prepare a case analysis report using the points below as your guidepost. 

i. Review Tata Motors Limited’s financials, and the industry and competitive financial information using the available information focusing on Tata Motors Limited’s profitability, liquidity, and financial structure. 

ii. Comment on whether Tata Motors Limited’s domestic operations’ profit potential was as great as their international operations. 

iii. Tata Motors Limited’s international operations expansion would require significant additional capital investments. Based on its current finances, could Tata Motors Limited take on additional debt to finance such a venture?

Answer rating: 100% (QA)

Case Analysis Report Tata Motors Limited i Financial Review and Industry Analysis Profitability Analyze Tata Motors Limiteds profitability through key ... View the full answer