Tata has posted its financial results for last year, making a profiit of $542m (£274m)
29 May 2008

Tata has just released financial results for last year. Although it sells the bulk of its cars and trucks in India, it is not immune from recent market turbulence and profits stalled last year at around $542m (£274m), very close to last year’s figure.

Jaguar and Land Rover are expected to officially become part of Tata Motors on Monday 2 June, when the nine month sell-off process is finally concluded.

Lawyers for both sides are finalising contractual details. “We can’t confirm anything yet, because there’s still some work to be done, but Monday looks a good bet,” says a source familiar with the sell-off.

Finalising the buyout will mean Jaguar and Land Rover can look towards its extensive future model programmes, including a new £40k two-seater sportscar and XF Coupe for Jaguar, and LRX soft-roader and aluminium Range Rover for Land Rover.

Tata will fund its $2.3bn purchase by raising two large lumps of funds. One is a $1.8bn rights issue –selling new shares in Tata Motors — and the other ‘securities’ for $600m. These will also payback a short-term bridging loan that Tata took out a few months ago to tide it over during the buyout.

Julian Rendell

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30 May 2008

At todays prices a company is worth barely 3 to 4 times earnings which makes Tata worth a paltry £750M based on last years £274M profits. And they've bought Jaguar and LR for £1.2bn (worth easily twice that) which doubles their asset value overnight.

Tata have had to loan every penny to buy J-LR no doubt secured against the assets they are buying plus a £40M give away from our weird and slimey (alien-like!) Chancellor Alistair Darling.

Ford have made the worst deal in their automotive history. If I was a shareholder I'd ask for the Boards resignation en block. The deal stinks.

For Tata it's the sweetest deal in automotive history. Land Rover profits alone will service the debts of the loan plus give them enough to rejuvinate existing models. But not enough for all new models which is why Tata are looking to Fiat and Alfa Romeo for tie-ups.

I sincerely hope that suggests a new hatchback Jaguar shared with Alfa as Jaguar needs to get into this segment to build up a bit of volume through its showrooms and tap into a younger market which it simply is not appealing to at the moment.

3 June 2008

I think the figures quoted in this article are for the Tata Motors subsidiary only. The last figures I saw for thw whole group were for 2006-07, showing a post tax profit of $2.8 billion and total assets of over $25billion.

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