The Hindu Business Line : JLR reports a loss of $ 383 million

Mumbai, Sept. 23 Jaguar Land Rover had reported a loss of $383 million for the five-month period from January to June 1, 2008, said Tata Motors in its prospectus for the proposed rights issue scheduled to open on September 29.

Tata Motors had acquired the iconic Jaguar and Land Rover brands from Ford in March 2008. The two units had clocked revenues of $7.07 billion in this period, the company added.

Detailing the risk factors, Tata Motors said: “Future pension expenses at the Company’s Jaguar Land Rover operations, based on actuarial assumptions, may prove more costly than currently anticipated and the market value of assets in Jaguar Land Rover’s pension plan could decline.”

Referring to the land-acquisition-related trouble that the company’s Nano project was facing in Singur, Tata Motors said that it could affect the profitability of the company.

“Due to recent disturbances, we have temporarily suspended activities at the Singur site and are exploring alternative options at our existing/new sites. Capital projects may incur significant cost overruns and may not be completed on time or at all, which may significantly affect our results of operations,” it said. “As a consequence of project delays, cost overruns, changes or lack of demand for our products or for other reasons, we may not achieve the economic benefits expected of these projects and our failure to obtain expected economic benefits from these projects could adversely affect our business, financial condition and results of operations,” said the prospectus.

Rights issue

Earlier this month, the company had announced the details for its right issue of company aggregating around Rs 4,200 crore. The issue was to part-finance the JLR acquisition .

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