Tata Motors' domestic business is expected to become near net-debt zero in FY24 and JLR in the following year, Tata Motors chairman N Chandrasekaran told company's shareholders virtually at the 78th Annual General Meeting.
"On our net debt journey, I expect Tata Motors domestic business to become near net-debt zero in FY24 and JLR in the following year," he said. His remarks come against the backdrop of strong operational performance of all the three business verticals comprising commercial vehicles, domestic passenger and electric vehicles and Jaguar Land Rover delivering on their strategies in FY23.
Tata Motors Group sales rose 23% to 13.36 lakh units in FY23 while its revenues rose to an all-time high ₹3.46 lakh crore (up 24%), EBITDA improved to ₹37,011 crore (up 110 bps) and PAT was ₹2,690 crore. All three core auto businesses turned profitable in the second half of the year. Free cash flow (automotive) for the year stood at ₹7,800 crore improving substantially from a negative ₹9,500 crore recorded in FY22. As a result, the company's net automotive debt reduced to ₹43,600 crore from ₹48,700 crore in the beginning of FY23.
The India business, he said, returned to profit after navigating all the challenges of FY23 with a profit after tax (PAT) of ₹2,728 crore. Tata Motors' Board has recommended a final dividend of ₹2 per ordinary share and ₹2.10 per 'A' ordinary share of face value of ₹2 each to its shareholders, subject to shareholder's approval.
The company's passenger vehicle and EV business continued its robust performance for the third year in succession in FY23. The business registered its highest ever annual sales of around 5,41,000 vehicles in FY23, a growth of 45% over FY22. It became only the third carmaker in India to cross the 5,00,000 annual sales mark.
The CV business witnessed a challenging first half in FY23 and refined its operating model to drive 'Profitable Growth'. It moved away from 'supply chain push' to a 'demand pull' model, he noted.
JLR made good progress in its 'Reimagine' journey to transform into a modern luxury vehicle business with sustainability at its core. The transformation of Jaguar into an all-electric luxury brand is on track with the first new vehicle expected to be launched in 2024 and customer deliveries starting in 2025. It will also start taking pre-orders for the maiden pure electric Range Rover later this year, he said.
FAQs
The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”
Is Tata Steel debt free? ›
What Is Tata Steel's Net Debt? As you can see below, Tata Steel had ₹897.2b of debt, at September 2023, which is about the same as the year before. You can click the chart for greater detail. However, it also had ₹125.9b in cash, and so its net debt is ₹771.3b.
What is the total debt of Tata? ›
It was the highest, Rs 27,437 crore, at the end of March 2019, Business Standard reported. On the other hand, the Tata Group's holding company gross debt almost halved to Rs 15,173 crore until January 2024 on a standalone basis. It peaked at Rs 31,363 crore in March 2019 (FY2020).
Why Tata Motors is in profit? ›
Tata Motors Q4 Results: India's most valuable carmaker reported a more than three-fold increase in net profit driven by strong performance across all its three auto businesses, especially its British luxury car unit, Jaguar Land Rover.
What is zero net debt? ›
In other words, net debt is equal to a company's (or individual's) total debt minus its cash, cash equivalents, and liquid investments. It's also worth mentioning that some companies have no debts whatsoever, and others have debt, but the cash and equivalents on the balance sheet are greater.
What are the long term debts of Tata Motors? ›
Financials
| Balance Sheet of Tata Motors (in Rs. Cr.) | Mar 24 | Mar 21 |
|---|
| NON-CURRENT LIABILITIES | | |
| Long Term Borrowings | 5,235.67 | 16,326.77 |
| Deferred Tax Liabilities [Net] | 49.78 | 266.50 |
| Other Long Term Liabilities | 1,392.16 | 1,786.93 |
61 more rowsWhat Is Tata Chemicals's Net Debt? As you can see below, Tata Chemicals had ₹55.7b of debt at September 2023, down from ₹61.4b a year prior. However, because it has a cash reserve of ₹13.9b, its net debt is less, at about ₹41.8b.
Which big company is debt free? ›
Debt free companies
| S.No. | Name | Debt / Eq |
|---|
| 1. | Ksolves India | 0.00 |
| 2. | Nestle India | 0.10 |
| 3. | Life Insurance | 0.00 |
| 4. | Tips Industries | 0.03 |
23 more rowsWhat Is Tata Power's Net Debt? The chart below, which you can click on for greater detail, shows that Tata Power had ₹494.8b in debt in March 2024; about the same as the year before. However, it does have ₹106.3b in cash offsetting this, leading to net debt of about ₹388.5b.
Who owns most of Tata? ›
About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest two of these trusts are the Sir Dorabji Tata Trust and Sir Ratan Tata Trust.
Tata Motors Share Price Target 2026: The target moves up to ₹1,569, with a forecasted range between ₹1,504.38 and ₹1,634.63. Tata Motors Share Price Target 2030: Looking further ahead, the share price is expected to soar to around ₹3,831, with predictions ranging from ₹3,672.79 to ₹3,990.78.
Is Tata a trillionaire? ›
The Tata Group has diversified its business interests across a wide spectrum, ranging from salt to IT. As of March 31, 2022, there are 29 publicly-listed Tata enterprises, boasting a cumulative market capitalization of $311 billion (Rs 23.6 trillion), as per the official website.
Which is the most profitable Tata company? ›
Despite this, TCS remains the most profitable firm in the Tata group in terms of annual profit, with a consolidated adjusted net profit of Rs 46,625 crore in 2023-24. This is significantly higher than Tata Motors' adjusted net profit of Rs 32,078 crore last financial year.
Is Tata Motors a good buy for long term? ›
Long term view of tata motors is good but on short term it may stay volatile within this range (950 - 1050), reason behind sales & profit, look as per rule all auto companies have to produce there monthly sales update.
What is the future prediction of Tata Motors? ›
Future criteria checks 1/6
Tata Motors is forecast to grow earnings and revenue by 0.6% and 7.2% per annum respectively. EPS is expected to grow by 1.7% per annum. Return on equity is forecast to be 21.9% in 3 years.
Is Tata Power debt free or not? ›
What Is Tata Power's Net Debt? The chart below, which you can click on for greater detail, shows that Tata Power had ₹494.8b in debt in March 2024; about the same as the year before. However, it does have ₹106.3b in cash offsetting this, leading to net debt of about ₹388.5b.
Is Tata consumer debt free? ›
6.3B INR. Based on the financial report for Mar 31, 2024, Tata Consumer Products Ltd's Long-Term Debt amounts to 6.3B INR.
Is Tata Investment Corporation debt free? ›
Company has reduced debt. Company is almost debt free.
