Business Daily from THE HINDU group of publications
Tuesday, Sep 01, 2009
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Business Daily from THE HINDU group of publications Tuesday, Sep 01, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Mergers & Acquisitions Corporate - Financial Performance
Mr Ravi Kant (right), Vice-Chairman, Tata Motors, and Mr P.M. Telang, Managing Director-India Operation, at a press conference in Mumbai on Monday. Our Bureau Mumbai, Aug. 31 The steep fall in Jaguar Land Rover sales has pushed Tata Motors into the red in the first quarter of this fiscal with a consolidated loss of Rs 329 crore. The company had reported a standalone net profit of Rs 514 crore for the first quarter a month ago. Tata Motors said this was not comparable to the previous fiscal’s corresponding quarter as the JLR acquisition concluded in June 2008. Gross revenue was, incidentally, Rs 16,954 crore, up from Rs 15,496 crore. The company had reported a net profit of Rs 720 crore for the corresponding quarter last year. JLR sales fell 52 per cent to 35,900 units thanks to the adverse global conditions. “We need a little support from the market (for the turnaround of JLR) given the drop in sales,” said Mr Ravi Kant, Vice- Chairman, Tata Motors, at a press meet here on Monday, adding that the “real activity on the ground is yet to begin”. The company has tied up with Burdale Financial, Standard Chartered and Bank of Baroda for JLR’s working capital needs. “There is a lot of action going on. Cross-functional teams have been formed and our need for additional funds has come down drastically. Some early gains have been recorded. It will begin to reflect in quarter-on-quarter results,” he said. Tata Motors has hired KPMG and Roland Berger to turn around JLR. On the possibility of further job cuts within the two companies, Mr Kant said, “It is a continuous process to evaluate your workforce.” The company is now working on CRX concept – the new small Range Rover, CO2 offset programme for Jaguar and new JLR engines. It spent £150 million on research and development last quarter. As for the domestic market, Mr P.M. Telang, Managing Director, said the World Truck would be launched this quarter. Full capacity at the Pantnagar plant will be achieved in a couple of months. Of the annual production of 2.5 lakh units, the Ace pickup will account for two lakh with the Nano accounting for the balance. Tata confident of JLR turning the corner Tata Motors close to raising £340 m for JLR JLR breathes a lot easier though tough times continue Tata Motors, JLR will work closely over time More Stories on : Mergers & Acquisitions | Financial Performance | Tata Motors Ltd
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