Last year i.e., 2020, at its annual general meeting, Tata Motors had announced its aim to become a debt free company within the next three years.
Timelines seems to have shifted by a year.
However, given Covid related disruptions, it’s still acceptable.
For reference, the Company reported a Gross debt of Rs 1,50,211 crore and net debt of Rs 61,286 crore as on June 30, 2021.
The firm is confident of reducing debt because of the improved free cash flows both due to operational improvements and better working capital management.
Tata Motors chairman N Chandrasekaran has reaffirmed that the Company would be net-debt free by FY24.
He said that each of it’s businesses is self-sustaining, and that gives him the confidence to attain net-zero automotive debt by FY-24.
Tata Motors Group is now operating as three independent business units of Commercial Vehicles, Passenger Vehicles and Jaguar Land Rover.