Global economic downturn and heavy losses at its UK unit Jaguar and Land Rover (JLR) cast their shadow on auto giant Tata Motors,which has posted a consolidated net loss of Rs 2,505.25 crore for 2008-09 against a profit after tax (PAT) of Rs 2,167.70 crore for 2007-08. Consolidated revenues for the reporting year was Rs 70,938.85 crore against Rs 35,660.07 crore in FY 08,Tata Motors said. On May 29,2009,it reported that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs 25,660.79 crore,and profit after tax for the year was Rs 1001.26 crore. The results would have to be seen in the context of the global economic meltdown witnessed in the third quarter of the last financial year, Tata Motors vice-chairman Ravi Kant told reporters here. The global economic meltdown and the transfer of ownership both happened at the same time,he said. The JLR unit has posted a net loss of 281 million pounds (around Rs 2,218 crore) in the 10 months of the fiscal year to March 2009. There has been a drop of 32 per cent in the overall sales of JLR during the period to 1.67 lakh units from 2.46 lakh units,said C Ramakrishnan,chief financial officer,Tata Motors. While the fall in sales of Land Rover was 40 per cent,the sales of Jaguar fell just 4 per cent. All the major markets such as North America and UK saw huge drop in demand. Russia and China on the other hand showed some signs of growth. JLR,that it acquired in 2008 for $2.5 billion,made a profit in 2007 and continued to do so in the first half of 2008. However,the global meltdown,especially after July 2008 with vehicle financing and demands drying up,impacted the auto industry worldwide,including Jaguar Land Rover. However,Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan, Kant said. Around 2,000 JLR employees have already lost jobs and the current strength stands at 15,000. For cost cutting measures,we have sent people on sabbatical and now have tight control on cash flows. Various restructuring methods are undertaken wherein we are postponing certain projects that are not very important. We have also shut downs some plants and will shutdown more if required, Kant said. The company has reported a basic earnings per share (EPS) loss of (Rs 56.88) (2007-08: profit of Rs 56.24) for its consolidated operations. Tata Motors shares moved up marginally by 0.80 per cent to Rs 340.30 on the BSE on Friday. On the cash flow requirements of JLR,Ramakrishnan said that the company is in a comfortable position and will be in a position to run the show even if the talks with the UK government for the guarantee of the 340 million pounds (Rs 2,693 crore) from European Investment Bank (EIB) fail. Kant added that the said amount has been sanctioned by EIB and now the company is awaiting a guarantee from the government or a financial institution. •JLR to roll out on Sunday Tata Motors will launch Jaguar and Land Rover vehicles in India on Sunday. The luxury cars will be imported and sold by the luxury-car unit,Premier Car Division,of Tata Motors. Jaguars XF and XKR and Land Rover's sports utility vehicles Discovery and Range Rover are likely to be introduced in India.
