Tata Motors Chairman N Chandrasekaran said the Tata Motors Group will reduce its consolidated debt to zero over the next three years. At the 75th shareholders’ meeting on Tuesday, Chandrasekaran said improving the product portfolio and reducing debt to zero will be the top priority for the company in the near future.
The company has a net auto debt of Rs 48,000 crore. “… currently, we are significantly deleveraging this business. The aim is to bring it down to a level of debt close to zero over the next three years,” he said.
He said the company is already taking various steps to ensure it becomes “positive free cash flow” by fiscal 22.
The company also plans to unlock investments in various non-core businesses, he said.
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He said Tata Motors was committed to its UK companies Jaguar and Land Rover, and the company’s domestic offerings, including recent models like Nexon, Altroz and Harriers, had been well received by customers.
CARE Ratings recently reaffirmed its rating of Tata Motors for banking facilities and non-convertible debenture and commercial paper issues.
The credit rating agency cited the firm’s established track record as well as the strong backing of the Tata Group.
Long-term and short-term bank facilities were reaffirmed by CARE AA- (negative outlook) and CARE A1 +, respectively. The non-convertible debentures were reaffirmed CARE AA- with a negative outlook and the commercial papers were reaffirmed CARE A1 +.
The Tata Sons company posted a loss for the second quarter in a row in the first quarter of FY21 as coronavirus lockdowns hurt its sales in India and overseas.
The loss during the first quarter ended June 30, 2020 amounted to Rs 8,438 crore, compared to Rs 3,698.34 crore recorded in the first quarter of fiscal year 20 and Rs 9,863.75 during the fourth quarter of the year. ‘exercise 20.
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