NEW DELHI (India CSR): Tata Motors, one of India’s leading automobile manufacturing companies with an extensive range of integrated, smart and e-mobility solutions in its portfolio, had a total debt of Rs. 1,39,677 crores at the end of FY22.
“Any additional funding requirements can be met through loans and other debt from time to time. Despite step-up in the investments, we are expecting our business to be largely self-sustaining and we aim to get to near zero-net auto debt by FY 2023-24”, the company said.
Since the Consolidated debt has increased by 2.8% in FY 2021-22 compared to FY 2020-21 and the Shareholder’s equity has been reduced due to losses for the year, the debt-equity ratio is high.
As of March 31, 2022, Jaguar Land Rover’s long-term debt obligations were senior notes and bank loans of Rs. 63,910 crores.
“Our total debt was Rs. 1,39,677 crores as of March 31, 2022, compared to Rs. 1,35,905 crores as of March 31, 2021, an increase of 2.8%, partially offset by favourable currency translation of Rs. 943 crores from GBP to Indian rupees.”, the company said in its annual report for the year 2021-22.
“Short-term debt (including the current portion of long-term debt) decreased to Rs. 41,918 crores as of March 31, 2022, compared to Rs. 42,792 crores as of March 31, 2021.”, the report added.
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Long-term debt (excluding the current portion) increased by 5.0% to Rs. 97,759 crores as of March 31, 2022, from Rs. 93,113 crores as of March 31, 2021.
Long-term debt (including the current portion) increased by 7.1% to Rs. 122,299 crores as of March 31, 2022, compared to Rs. 114,242 crores as of March 31, 2021.
Tata Motors Chairman N Chandrasekaran says each of its businesses is self-sustaining, and that gives him the confidence to attain net-zero automotive debt by FY-24 In his address to the shareholders in the FY-22 annual report, Chandrasekaran said, “We are committed to restoring the profitability of this business as it returns to competitive growth and inflation stabilizes.”
Net cash outflow from financing activities totaled Rs. 3,380 crores in FY 2021-22, compared to an inflow of Rs. 9,904 crores in FY 2020-21. Net Borrowings (net of issue expenses) done during FY 2021-22 of Rs. 5,971 crores, compared to Rs. 18,057 crores during FY 2020-21.
For Tata Commercial Vehicles and Tata Passenger Vehicles excluding vehicle finance, the short-term debt (net) decreased by Rs. 647 crores, whereas the long-term debt (net) decreased by Rs. 2,997 crores, due to additional repayments. There was a decrease in debt (short-term and long-term) of Rs. 59 crores in FY 2021-22 at Vehicle Financing, compared to an increase of Rs. 7,188 crores in FY 2020-21.
For Jaguar Land Rover, short-term debt increased to GB£1,779 million in FY 2021-22 (GB£1,206 million in FY 2020-21) and Long-term debt (excluding lease liabilities) increased to GB£5,248 million in FY 2021-22 (GB£4,972 million in FY 2020-21), including the new EURO500 million and US$500 million unsecured bonds issued in FY 2021-22, partially offset by repayment of GB£400 million bond and GB£125 million of the UKEF-backed loan which amortized over the course of the year as well as favourable revaluation of foreign currency debt as a result of the stronger Pound at March 31, 2022, compared to March 31, 2021. Lease obligations payments totaled GB£71 million in FY 2021-22 compared to GB£80 million in FY 2020-21.
Despite the decrease in debt of Tata Commercial Vehicles and Tata Passenger Vehicles, interest expenses marginally increased on account of discounting charges which increased to Rs. 521 crores in FY 2021-22 compared to Rs. 426 crores in FY 2020-21.
(India CSR)
