Fri. Mar 29th, 2024

On June 15, Tata Motors Limited said that it is expecting to save 5 million pounds in costs by March 2021 at its Jaguar Land Rover (JLR) unit. For this, TML is planning to shed about 1,100 temporary units at JLR. Previously, it has increased the cost-cutting target at the unit by 1 billion pounds to overcome the repercussions of COVID outbreak and the subsequent lockdown. So far, 3.5 billion pounds have been saved as reported by Chief Financial Officer of TML, PB Balaji.

Tata Motors Limited has spent more than 3 billion pounds annually in previous years. It will now reduce its expenditure at JLR to 2.5 billion pounds for the current fiscal year.

On June 15, the company posted a consolidated fourth-quarter loss worth Rs 98.94 billion as its sales plunged because of the lockdown. After which, Balaji said, “Conserving cash and prioritising capital expenditure, and targeting investment spending to the right areas is our focus”.

In order to save 60 billion rupees in its domestic business during FY21, Tata Motors is reviewing all its businesses and would likely exit those who do not add strategic value.

In the quarter ending March 31, the company’s total revenue from operations fell by 27.7 per cent to reach Rs 624.93 billion. Balaji said, “JLR, which contributes the bulk of Tata Motors’ revenues, reported a pre-tax loss of 501 million pounds for the period after it took a hit of 800 million pounds because of the novel coronavirus”.

JLR’s boss Ralf Speth will step down from his position in September as per the company’s contract.

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