Tata Motors held its annual shareholder meeting on Tuesday
Auto major Tata Motors Ltd will significantly reduce its group automotive debt of Rs 48,000 crore over the next three years, news agency Reuters quoted the company’s chairman N Chandrasekaran as saying during its annual shareholder meeting on Tuesday. Tata Motors is “deleveraging this business substantially” and has set targets to generate free cash flows, Mr Chandrasekaran said, according to Reuters.
Earlier this year, Tata Motors reported that its net loss widened to Rs 8,437.99 crore in the June quarter, from Rs 3,698.34 crore in the corresponding period the previous year.
According to Reuters, hurt by the lack of demand and disruption in supply chains caused by the outbreak, Tata Motors’ turnaround plans for its domestic unit and British luxury unit, Jaguar Land Rover (JLR) have been derailed, but the company said it is committed to cutting costs, tightening investment spending and improving profitability.
“The company is working with agility to transform towards a future that is strong, sustainable, and financially rewarding,” Mr Chandrasekaran said, adding that the group would also look to “unlock non-core investments”.
In the June quarter, JLR’s revenue declined 44 per cent to 2.98 billion pounds, resulting in a loss before tax of 413 million pounds.
On Tuesday, Tata Motors’ shares rose nearly 5 per cent to close at Rs 127.05.
