Tata Motors’ FY19 annual report highlights sharp deterioration in profitability led by weak JLR performance due to lower sales (particularly in china)

JLR’s EBIT margin remained sub-optimal and declined 470bps YoY to -0.9%.

Standalone business improved operationally with revenue of 18% and and EBITDA growth of 108% YoY.

FCF remained at GBP(1.4)bn, which along with low profitability led to JLR reporting net debt of GBP0.7bn (first time since FY11).

RoE/ ROCE plunged to (11)%/2% led by elevated capex intensity and weak profitability in FY19.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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