InvestorQ : How is Tata Motors planning to restructure its operations after the recent losses reported by the company?
Khushi Patel made post

How is Tata Motors planning to restructure its operations after the recent losses reported by the company?

Answer
user profile image
diksha shah answered.
3 months ago


For Mar-20 quarter, Tata Motors reported net loss of Rs.9894 crore and as you rightly posed the question, it has set in a motion a series of restructuring moves. The top priority for Tata Motors is to make JLR asset-light and reduce the cost numbers and also the debt levels of the group to more manageable levels. Tata Motors has overall debt of Rs.48,000 crore, which is posing a huge burden on the stock performance. To address this issue, Tata Motors will cut 1100 jobs at JLR and also defer some its investment plans with a view to conserving cash. Over the last few months, there has been an absolute demand collapse and for the company the first priority is to pare debt. It is undertaking an internal restructuring that will pare its Rs.48,000 crore debt and also save Rs.6000 crore, apart from freeing up cash for business.