TATA MOTORS - Road To Become Debt Free | Start Buying Shares | Watch🔥

Описание: Tata Motors Ltd (TML) aims to reduce its total automotive debt to ''near-zero levels'' in three years and generate free cash flows from FY22 onwards, company chairman N Chandrasekaran said on Tuesday.

However, the company''s management had to face ire from several shareholders on various issues, including non-payment of dividend four years in a row.

Chandrasekaran, while addressing shareholders at Tata Motors'' 75th annual general meeting, said the company would look to unlock non-core investments in order to deleverage business, but asserted that neither the passenger vehicles business nor Jaguar Land Rover (JLR) is being sold.

"Currently, the Tata Motors Group has a net automotive debt of Rs 48,000 crore and we are deleveraging this business substantially," he said. "We have set a target to significantly bring down the debt and come to near-zero debt levels in the next three years."

The company has initiated steps towards this and and set a target to generate positive free cash flows from FY22 onwards, he added.

Outlining initiatives to tighten cost structures, Chandrasekaran said overall investments of the group have reduced by close to 50 per cent this fiscal, and the company would continue to manage it very tightly going forward.

While capex of domestic business has been pruned to Rs 1,500 crore for this fiscal, that of JLR has been capped at 2.58 billion pounds.

Several shareholders expressed their anger on the company not paying dividend for fourth year in a row, especially during a milestone year when the company is celebrating its 75th anniversary.

Asserting that the company''s shareholder wealth has been only depreciating over the years, some shareholders also questioned as to why many its executives were drawing huge salaries at a time when the company is incurring losses.

They also sought to know if the management executives have taken pay cuts considering the impact of COVID-19 pandemic.

Referring to dividends, Chandrasekaran said, "Many people raised the issue of dividend. I can tell you that I am equally pained that we have not delivered dividends for the last four years.

"This is of top priority to the company but unfortunately on the standalone level there has been no room for the last three-four years. This has been given the top most priority."


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(The Equity Teller)