InvestorQ : Why has Jaguar Land Rover likely to take a huge billion dollar write-off in the March quarter?
indhumathi Sayani made post

Why has Jaguar Land Rover likely to take a huge billion dollar write-off in the March quarter?

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1 month ago
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You are right that Jaguar Land Rover of UK, which is currently owned and managed by Tata Motors, will take a one-time write-off to the tune of £1.5 billion in the forthcoming Mar-21 quarter. This write-off will be on account of its restructuring exercise. It may be recollected that in the Dec-20 quarter, JLR had actually taken a hit of £3.7 billion on account of a slowdown in China and Brexit uncertainties and its impact on asset values.

However, JLR is not overly worried about these write off. That is because; it expects to offset this cost by a positive cash flow in FY22. JLR is in the process of reducing annual spending to about £2.50 billion as part of a corporate level cost cutting. JLR has targeted to increase EBIT margins by 4% led by new vehicle architecture. In addition, JLR anticipates that it would be cashflow positive by FY23 and generate net cash by FY25 via margins.

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