JLR, the maker of Jaguar F-Type and Range Rover Evoque, was a jewel in the crown of Tata Motors
till two years back. But, it has been struggling because of the pending Brexit, a sharp contraction in sales in China, a shift in consumer preference from diesel to gasoline in Europe, higher taxes on diesel vehicles, and tightening regulations.
In China, one of the largest and profitable markets, JLR’s sales declined 34 per cent year on year in FY19.
reported revenue of £24.2 billion in FY19, down 6.2 per cent over a year ago. This came on the back of 6.9-per cent contraction in wholesale volumes (excluding Chery JLR).
In a letter to the shareholders, N Chandrasekaran, non-executive chairman, Tata Motors, and chairman, Tata Sons, wrote, “JLR
is taking steps to cut costs while taking a calibrated approach towards future investment in the product portfolio.”
He said the company was “actively looking at partnerships and prioritizing its investments” while ensuring that it was not compromising its future. “These are critical interventions and JLR is committed to deliver cost and cash improvements,” he wrote.
Butschek, who took the top job at Tata Motors in February 2016, drew a total compensation of Rs 26.32 crore in FY19 against Rs 26.42 crore in FY18 and Rs 23 crore in FY17. He is credited for turning around the company’s commercial and passenger vehicle business through series of operational efficiency measures and new product introduction.
Led by a strong volume growth and market share gains in the CV and PV business, Tata Motors’ revenue grew 18 per cent to Rs 69,203 crore in FY19. It resulted in an increase in EBITDA margins to 7.4 per cent during the year as against 4.1 per cent a year ago.
The company’s profit before and after tax (including joint operations) for the year were at Rs 2,399 crore and Rs 2,021 crore, respectively as compared to a loss before and after tax (including joint operations) of Rs 947 crore and Rs 1,035 crore, respectively for FY18.