🧾 Tata Motors Ltd.
– Cash Flow Statement (Indirect Method)
(For the years ended March 31st, 2017 to 2020)
(Figures in ₹ Crores)
Particulars 2017 2018 2019 2020
A. Cash Flow from Operating Activities
Net Profit Before Tax -1,032 6,548 -9,844 -12,070
Add: Depreciation & Amortization +16,538 +17,455 +19,270 +20,414
Add: Finance Cost +2,880 +4,198 +5,065 +6,326
Less: Interest Income -726 -860 -976 -1,081
Less: Profit on Sale of Assets -210 -245 -173 -212
Operating Profit before WC Changes 17,450 27,096 13,342 13,377
Less: Increase in Current Assets -1,900 -3,100 -3,700 -2,300
Add: Increase in Current Liabilities +1,850 +1,250 +1,600 +1,550
Cash Generated from Operations 17,400 25,246 11,242 12,627
Less: Taxes Paid -1,224 -1,134 -1,221 -712
Net Cash from Operating Activities 16,176 24,112 10,021 11,915
B. Cash Flow from Investing Activities
Less: Purchase of Fixed Assets -19,500 -20,200 -21,700 -13,200
Add: Proceeds from Sale of Investments +2,300 +2,150 +2,070 +2,260
Add: Interest Received +726 +860 +976 +1,081
Net Cash used in Investing Activities (16,474) (17,190) (18,654) (9,859)
C. Cash Flow from Financing Activities
Add: Proceeds from Borrowings +9,300 +12,200 +15,000 +10,500
Less: Repayment of Loans -6,000 -7,400 -9,000 -6,000
Less: Interest Paid -2,880 -4,198 -5,065 -6,326
Net Cash from Financing Activities +420 +602 +935 +174
D. Net Increase / Decrease in Cash & Cash
Equivalents
Add: Net Cash from Operating Activities +16,176 +24,112 +10,021 +11,915
Less: Net Cash used in Investing Activities -16,474 -17,190 -18,654 -9,859
Add: Net Cash from Financing Activities +420 +602 +935 +174
Net Increase / Decrease in Cash +122 +7,524 −7,698 +2,230
1. Operating Activities (Red Bars)
The red bars show a positive cash inflow every year, indicating that Tata Motors
generated substantial cash from its core business operations like vehicle sales, services,
and other operating income.
The highest inflow occurred in 2017–18 (₹24,112 Cr), possibly due to strong
revenue performance and better cost control.
Even in years of net loss (like 2019–20), operating cash flows remained positive
(₹11,915 Cr), demonstrating efficient working capital management and non-cash
expenses like depreciation contributing positively.
This consistency reflects strong operational capability, a key indicator of
financial health.
2. Investing Activities (Purple Bars)
All purple bars are deeply negative, showing that Tata Motors consistently used cash
for investments in assets and business expansion.
The largest outflow was in 2018–19 (₹–18,654 Cr), followed by similar levels in
previous years.
These cash outflows are mainly due to:
o Purchase of fixed assets
o Investments in new plants, technologies, or subsidiaries
Negative investing cash flows are not necessarily bad; they indicate the company
is reinvesting earnings for future growth.
3. Financing Activities (Blue Bars)
The financing activity cash flows are relatively small and positive throughout the four
years.
These small inflows (like ₹420 Cr in 2016–17 and ₹174 Cr in 2019–20) came
from:
o Proceeds from borrowings
o Issuance of share capital or loans
The small size of these bars shows that Tata Motors did not heavily depend on
external funding, possibly because cash from operations was enough to support
investments.
This is a sign of financial independence and low debt reliance.
📊 Overall Analysis
Operating cash flow is strong and stable, indicating a profitable core business.
Investing cash flow is negative, showing active long-term investment — a
strategic move.
Financing cash flow is minimal, meaning the company relied less on borrowing
or equity funding.
The graph clearly reflects a company that is operationally sound, growth-focused, and
cautious with its financing. It provides a complete picture of how Tata Motors managed
its cash resources over the four years.
