More than 50% of the $3.1 billion in write-downs represents tangible assets. This impairment is so significant that it has almost wiped out the existence of the company even though this is a notional loss and has no effect on the cash flow. The real reason is the gigantic $3.1 billion impairment that the company had to take upon its assets. However, this massive loss is not really the reason for the tense atmosphere at Jaguar Land Rover (JLR). Jaguar Land Rover (JLR) has been posting quarterly losses for over a year now! This time the loss posted was close to $350 million. In this article, we will have a closer look at the grim financial situation facing Jaguar Land Rover (JLR) as well as the reasons that have taken the company to these devastating lows. If many analysts are to be believed, the cash flow situation is so bad that the company may not even make it to the next year! The problem is that all of a sudden Jaguar Land Rover (JLR) finds itself in the middle of a cash crunch. The company is famous for producing vehicles which can handle off-road driving while simultaneously making a style statement when driven within the city. On Thursday, shares of Tata Motors ended 2.6% higher at 437.65 on NSE.Jaguar Land Rover (JLR) produces some of the most exquisite and high-end luxury vehicles in the world. JLR reported benign cash flows on a sequential basis on the back of increased wholesale volumes coupled with a favourable mix and better pricing. JLR’s profit (before tax) was 265 million pounds in the December quarter, up from a loss of 9 million pounds a year ago, with a positive EBIT margin of 3.7%, up from 1.4% in Q3 of FY22. In the December quarter, JLR achieved positive free cash flows and posted profits with an improvement in supplies following a loss-making September quarter. On a preliminary basis, JLR expects to achieve free cash flows of at least £800 million in the March quarter and more than £500 million for the full year.Īccording to Tata Motors, JLR’s initial estimated cash balance is at £3.7 billion and net debt of around £3 billion. JLR expects to report results for the fourth quarter and full year ended 31 March 2023 in May 2023," the parent company told the exchanges. “Range Rover, Range Rover Sport and Defender demand remains particularly strong, representing 76% of the order book. Tata Motors said JLR’s order book was strong, with over 200,000 pending orders at the end of the March quarter, which is, however, about 15,000 lower than the 31 December 2022 order book, hinting at the higher retail sales in the March quarter. Wholesale volumes for the Defender rose to 27,513 units in the March quarter from 23,816 in the preceding three months, with the company continuing to operate a third shift at the Nitra facility in Slovakia. JLR’s flagship Range Rover and Range Rover Sport dispatches continued to rise with 32,950 units during the quarter, up from 28,000 units in the December quarter. Wholesales, excluding China, were up 9% over FY22 to 321,362 units. Retail sales were higher across markets led by Europe (47%), the UK (42%), China (29%), overseas (29%) and North America (12%) in FY23, compared to 376,381 units in 2021-22. JLR’s retail sales for the March quarter were at 102,889 units, including the Chery Jaguar Land Rover China joint venture, up 21% from the previous quarter and 30% compared to the year-ago quarter.
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