Tata Motors' FY10 debt down 16% at Rs 27,170 cr

Tata Motors' consolidated net debt in 2009-10 has come down by 16.41 per cent to Rs 27,170.49 crore, benefiting from cash surplus in its British subsidiary, Jaguar Land Rover (JLR), and increased mutual fund investments.

In its annual report for the year 2009-10, the company said its net debt in the previous year ended March, 2009, was at Rs 32,505.52 crore.

It, however, said that on a standalone basis, the company's net debt increased to Rs 14,962.33 crore during the year, against Rs 12,486.66 crore in the previous fiscal.

"The reduction (in consolidated net debt) represents surplus cash and bank balances and increase in mutual fund investments," the company said.

During the year, investments in mutual funds were at Rs 988.05 crore, while cash and bank balances increased by Rs 4,621.98 crore due to surplus cash in the JLR business, it said.

In the year, JLR reported a profit before tax of 32 million pounds (about Rs 230 crore).

Last year, JLR had made a turnaround after suffering from the global downturn in 2008-09.

"Wholesale volumes for the full year ending March 31, 2010, were 47,418 units for Jaguar and 1,46,564 units for Land Rover," it said.

Tata Motors' gross debt, however, increased marginally to Rs 35,192.36 crore during the year from Rs 34,973.85 crore in the previous fiscal.

The homegrown auto major said its net assets during the year increased to Rs 808.81 crore against Rs 565.79 crore in the previous fiscal, up 42.95 per cent.

Earlier last year, Tata Motors had raised $750 million through issue of fresh shares in the global markets and convertible notes, for part repayment of $3 billion loan taken in June 2008 for JLR acquisition. It had acquired JLR for $2.3 billion from US car major Ford in 2008.

In 2009, JLR had secured over 500 million pounds of funding, including facilities from SBI, StanChart, Bank of Baroda, GE Capital, and Bank of Ireland.

In February this year, JLR secured a further 340 million pounds' loan from the European Investment Bank for utilisation in research and development.

Last month, the company had announced plans to invest about Rs 10,000 crore on product development, facility modernisation and other capex purposes over the next 2-3 years.

It had also said that it plans to raise up to Rs 4,700 crore long term funds for expanding the product range and increasing its presence in domestic and global markets in both commercial and passenger vehicle segments.

The company had made a turnaround by posting a huge profit of Rs 2,571.06 crore in 2009-10.