Tata Sons board okays 6,500 cr equity infusion in Tata Motors - Sarkari Naukri Sms

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Monday, October 28, 2019

Tata Sons board okays 6,500 cr equity infusion in Tata Motors

Tata Motors Ltd its board approved an equity infusion of ₹6,500 crores from its promoter Tata Sons Pvt. Ltd. Tata Motors will allot ordinary shares and warrants to the developer in return, subject to shareholder approval. The board approved raising ₹3,500 crores via external commercial borrowing, which will be used to refinance its existing debt. The total debt stands at around ₹50,000 crores, of which ₹20,000 crore is in its stand-alone business. The equity infusion from the promoters will help Tata Motors to reduce its absolute debt levels primarily.  The fundraise will help Tata Motors' stand-alone business, where the balance sheet has debt issues. Jaguar Land Rover's (JLR's) balance sheet, however, is secure and is in no need of capital infusion currently. Tata Motors reported a consolidated net loss of ₹217 crore in the September quarter on higher tax expenses and accumulated losses from joint ventures, primarily from the Cherry JLR Automotive Co. Ltd, its joint venture unit in China.Tata Motors' joint venture units reported accumulated loss of ₹363 crore in Q2 as against a profit of ₹86 crore in the year-ago period. On a year-on-year basis, the company managed to narrow down its quarterly loss, which stood at ₹1,049 crore in Q2FY19.Tata Motors reported an operating revenue of ₹65,432 crore in Q2 FY20, as against ₹71,981 crore in the year-ago period. The 9% year-on-year (y-o-y) fall in revenue was on account of subdued performance across JLR and its domestic business.Tata Sons chairman N. Chandrasekaran dismissed reports that Tata Motors was looking to sell JLR, although he had added that the company was open to the idea of a suitable partner to collaborate amid the ongoing demand slump and technological disruptions across the automotive industry. The company's stand-alone revenue was down 44% y-o-y at ₹10,000 crore in Q2 FY20 on the continued demand slump for passenger and commercial vehicles in India. Tata Motors reported a sharp drop of 44% in its wholesales, which stood at 106,349 units in Q2 FY20. Medium and heavy commercial vehicle wholesales were the most hit with a decline of 59%. The company's stand-alone Ebit (earnings before interest and tax) stood at -9.8% on an adverse mix and negative operating leverage.

from Current Affairs 2019 for Competitive Exams Current Affairs Today Tata Motors Ltd its board approved an equity infusion of ₹6,500 crores from its promoter Tata Sons Pvt. Ltd. Tata Motors will allot ordinary shares and warrants to the developer in return, subject to shareholder approval. The board approved raising ₹3,500 crores via external commercial borrowing, which will be used to refinance its existing debt. The total debt stands at around ₹50,000 crores, of which ₹20,000 crore is in its stand-alone business. The equity infusion from the promoters will help Tata Motors to reduce its absolute debt levels primarily.  The fundraise will help Tata Motors' stand-alone business, where the balance sheet has debt issues. Jaguar Land Rover's (JLR's) balance sheet, however, is secure and is in no need of capital infusion currently. Tata Motors reported a consolidated net loss of ₹217 crore in the September quarter on higher tax expenses and accumulated losses from joint ventures, primarily from the Cherry JLR Automotive Co. Ltd, its joint venture unit in China.Tata Motors' joint venture units reported accumulated loss of ₹363 crore in Q2 as against a profit of ₹86 crore in the year-ago period. On a year-on-year basis, the company managed to narrow down its quarterly loss, which stood at ₹1,049 crore in Q2FY19.Tata Motors reported an operating revenue of ₹65,432 crore in Q2 FY20, as against ₹71,981 crore in the year-ago period. The 9% year-on-year (y-o-y) fall in revenue was on account of subdued performance across JLR and its domestic business.Tata Sons chairman N. Chandrasekaran dismissed reports that Tata Motors was looking to sell JLR, although he had added that the company was open to the idea of a suitable partner to collaborate amid the ongoing demand slump and technological disruptions across the automotive industry. The company's stand-alone revenue was down 44% y-o-y at ₹10,000 crore in Q2 FY20 on the continued demand slump for passenger and commercial vehicles in India. Tata Motors reported a sharp drop of 44% in its wholesales, which stood at 106,349 units in Q2 FY20. Medium and heavy commercial vehicle wholesales were the most hit with a decline of 59%. The company's stand-alone Ebit (earnings before interest and tax) stood at -9.8% on an adverse mix and negative operating leverage. https://ift.tt/2WiTmrr

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