The JLR reality may've finally hit the Tatas

NEW DELHI: Tata Motors is said to be exploring various options for its British luxury subsidiary Jaguar and Land Rover (JLR) ranging from selling minority stake sale to forming a joint venture.For this, the automaker is holding preliminary talks with potential advisors. Tatas may prefer to keep a control of JLR, ET Now said quoting agencies.The deliberations are at a early stage and discussions may not necessarily lead to a transaction, sources told agencies.However, in response to ETMarkets story, Tata Motors said it did not have any such plans. “Tata Motors is not looking to divest its stake in JLR and we would not like to comment further on any market speculation,” said a Tata Motors spokesperson.Brexit, US-China trade war and signs of a slowdown in the global economy have hit JLR sales, putting pressure on earnings of Tata Motors.The reports have come at a time when global headwinds faced by Jaguar Land Rover dragged Tata Motors into losses in December quarter. At Rs 26,961-crore, Tata Motors losses for the quarter in fact were the highest-ever quarterly loss reported by any company on Dalal Street till date. The losses were largely caused by one-time exceptional non-cash charge for asset impairment of 3.1 billion pounds at its subsidiary JLR.JLR’s total debt increased to £4.66 billion in the third quarter of FY19 compared with £3.8 billion in the same quarter last year, while operating profits dropped to £2.2 billion. Consequently, the debt to EBITDA ratio of the company increased to 2.1 times from 1.3.Shares of Tata Motors jumped in a knee-jerk reaction to the report. Later, the scrip was trading 1.46 per cent higher at Rs 180.45.

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