Tata Motors Q1 net loss at Rs 328.78cr



Tata Motors Q1 net loss at Rs 328.78cr 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 Bank.

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 months.

"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 requirements.

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.

Bureau Report