N Chandrasekaran: Tata Motors on track to zero net debt by FY24: Chairman N Chandrasekaran

was on track to meet its previously stated goal of becoming a zero net debt company by fiscal year 24 despite the business impact of the pandemic, President N Chandrasekaran said at the annual general meeting on Friday ( AGA) of the company.

“Last year, thanks to internal cash flow and careful management, we were able to reduce debt by over 7,500 crore. And we are on track and remain committed to achieving our goal of FY24,” said said Chandrasekaran at Tata Motors’ 76th AGM.

The company had net auto debt of Rs 40,900 crore at the end of fiscal year 21. Debt reached Rs 61,300 crore at the end of the June quarter, mainly due to the impact of varying needs in working capital, the company said in an investor presentation.

“The company improved its EBIT margins by 260 basis points to Rs 6,471 crore and auto cash flow by Rs 5,317 crore despite a 10.3% drop in volumes to 903,000 units and declining revenues by 4% to Rs 2.5 lakh crore, ”said the president. EBIT is earnings before interest and taxes. One basis point is equal to 0.01%.

Regarding the business outlook, he said Tata Motors’ three businesses – Jaguar Land Rover and the passenger vehicle (PV) and utility vehicle (CV) business units – were on the road to recovery, with PV being the star. of exercise 21.

“As the impact of the pandemic wears off around the world and more people get vaccinated, we expect demand to remain strong as consumer preferences shift more towards personal mobility,” a- he told shareholders.

The company achieved a 10% share of the domestic PV market in the June quarter and is targeting a 15% share.

Tata Motors expects the business impact of the semiconductor shortage to subside by the second half of this year, but predicted it would take 12 to 18 months before the situation hit. completely return to normal.

In the CV segment, the company had a market share of over 42% but lost market share in the small utility vehicle (SCV) sub-segment.

“We were disappointed with the performance of SCV, where our market share fell 250 basis points to 37.5%,” said Chandrasekaran.

Ann J. Cox