NEW DELHI — Tata Motors will considerably cut back its group automotive debt of 480 billion rupees ($6.four billion) over the subsequent three years, the corporate’s chairman mentioned throughout its annual shareholder assembly on Tuesday.
Tata is “deleveraging this enterprise considerably” and has set targets to generate free money flows, N Chandrasekaran mentioned.
Automakers globally have been hit by the COVID-19 pandemic which has harm demand for vehicles and disrupted provide chains due to curbs on journey and the motion of products.
This has derailed Tata’s turnaround plans for its home enterprise and British luxurious unit, Jaguar Land Rover, however the firm mentioned it’s dedicated to reducing prices, tightening funding spending and enhancing profitability.
“The corporate is working with agility to remodel in the direction of a future that’s sturdy, sustainable, and financially rewarding,” Chandrasekaran mentioned. He mentioned the group would additionally look to “unlock non-core investments.”
Tata’s home enterprise is predicted to generate free money flows from fiscal 12 months 2021 whereas JLR will obtain this a 12 months later in 2022, the corporate’s finance chief, P B Balaji, mentioned through the digital shareholder assembly.