Mumbai: Auto major Tata Motors on Monday posted a consolidated loss of Rs 328.78 crore in first quarter of the
current fiscal, and said it has secured guarantees from four
banks to raise Euro 340 million that would be used to fund its
needs over the next 12 months.
A 52 per cent fall in JLR`s wholesale volume led Tata Motors to record a consolidated net loss of Rs 328.78 crore for the quarter ended June 30, 2009, against a profit of Rs
719.69 crore during the same quarter last fiscal.
The financial numbers, according to company`s Vice-Chairman Ravi Kant, are strictly not comparable since the
home-grown auto major had completed the JLR acquisition on June 2, 2008.
The Indian auto company had acquired the British marquee brands Jaguar and Land Rover for USD 2.3 billion. However, following huge losses in the company amid the global turmoil,
Tata Motors had sought assistance from the UK government, but
talks did not materialise.
He said, "Earlier, the UK government was to give the
guarantee. European Investment Bank was to give the loan. Now,
we have replaced the UK government with commercial banks. Work
is on and very soon, we would tie-up the nuances," Kant said,
adding the interest rates on the commercial bank loan rates
would be "more attractive".
The company has secured guarantees from four banks -
Burdale, Standard Chartered Bank, Bank of Baroda and GE - to
secure an Euro 340 million loan from the European Investment
Tata Motors Chief Financial Officer C Ramakrishnan said the JLR has received new funding source to meet
production forecast and funding requirement for the next 12
"Continued adverse Global automotive market conditions
have resulted in an overall reduction in JLR volumes during
the quarter," Kant said, adding, JLR has focused on aligning
production with demand, reducing costs and working capital
The company had a standalone net profit of Rs 513.76
crore, for the quarter ended June 30, 2009.
Total income from operations stood at Rs 16,397 crore for
the reported quarter against Rs 14,490.18 crore recorded in
the same quarter the previous fiscal.
Tata Motors` consolidated debt now stands at Rs 34-35,000
crore, he said.
The company said its "world truck" would be launched in
the domestic market in the current quarter and was to be
launched in South Korea as well.
Tata Motors, which launched JLR models in Mumbai last
month, said it has received good response and has sold 16
vehicles. By March, additional six showrooms would be opened
and out of them three-four showrooms will be opened by
December this year.