Breaking News

Fitch revises outlook on JLR from ‘stable’ to ‘positive’

MUMBAI: International rating agency Fitch has revised the outlook on Tata Motors’ British arm Jaguar Land Rover (JLR) to positive from stable apart from affirming the long-term foreign currency issuer default ratings and senior unsecured debt rating at ‘BB-’.
“The change in outlook to positive from stable reflects JLR’s continued strong operational performance and our expectation that the company will maintain its robust financial profile, despite a period of heavy investment in its transition to become a higher volume premium manufacturer,” Fitch said in a statement from Singapore Friday.
The positive outlook indicates that an upgrade could occur over the next 24 months if JLR continues to maintain its profitability, generate positive free cash-flows and increase its breadth and volume of products, it said, adding that the successful execution of the Jaguar XE compact sedan model is seen as a key part of this. The report said it expects JLR’s sales and profitability to continue to be robust this fiscal and FY16 on the back of a strong product pipeline and rising global demand for premium vehicles.
“We expect JLR to maintain margins above 8 per cent in FY16 despite increased costs associated with elevated capex and heightened competition,” the report said.
Retail volumes in FY14 rose 16 per cent driven by the Range Rover Evoque, New Range Rover Sport and the Jaguar XJ, XF and F-Type. PTI

Check Also

‘Low-cost housing, office spaces subdued 2019’

New Delhi: The Indian economy has been through a severe and a prolonged slowdown in …