By Ruma Dubey
Tata Motors has been gaining over the past one week and today it opened almost 4% higher at Rs.100, going up over 5% to an intraday high at Rs.101.45.
The company gave an update on the Covid unlock situation:
- Resumed operations in all plants with Jamshedpur Plant, also getting approval on May 27, 2020 and started operations.
- FIAPL JV plat at Ranjangaon has also resumed its operations
- 70% of the 3-S (Showroom, sales and service) outlets and 43% of the 1-S outlets opened for CV covering 56% of the retail Market.
- For PV, 59% of the showrooms resumed operations covering 69% of the retail market.
- 80% of Dealer workshops and Tata Authorized Service Stations(TASS) have commenced operations in CV and 69% workshops have started for PVs.
- Demand gradually starting to improve.
- From Supply side, 90% of suppliers in CV have received permissions to commence, 80% have started operation and only 60% have been able to start supplies.
- From Supply side, 98% of suppliers in PV have received permission and also started operations.
- As at March 31, 2020 the cash and cash equivalent of Rs 4.7K Cr and the undrawn credit facility of Rs1.5KCr.
- To further shore up the liquidity company has issued Commercial papers of Rs 3.5K Cr and also raised Rs 1 K Cr through NCDs.
- The company’s joint-venture plant in Changshu (China) has been operational since March as vehicle sales recover there and customers return to showrooms following the easing of the lockdown.
- Gradually resuming production at the Solihull and engine plants in the UK, the Slovakia plant, and contract assembly line in Austria.
- About 36% of retailers worldwide are open and a further 39% are open but constrained, with UK dealers allowed to reopen the week of 1st June 2020.
- Strong liquidity position of £5.6 billion with £3.7 billion of cash, financial deposits and £1.9 billion undrawn credit facility as at March 31, 2020.
- Continuously shoring up liquidity and raised GBP 220 Mn through local funding and working capital facilities.
On Tata Motors Finance:
- 240 offices/branches out of 270 have resumed operations.
- Has offered moratorium to eligible customers for March, April and May.
- As on today 75% of book is under moratorium.
- As of March 31, 2020, total Cash & equivalents (including liquid mutual fund and Bank Fixed deposits) stands at Rs. 2.6K Cr and unutilised lines at Rs. 3.3K Cr