Tata Motors' net debt reduces by 21% to Rs 21,480 crore

Tata Motors' consolidated net debt has gone down by 20.70% during 2010-11 to Rs 21,479.90 crore on account of fund generations from institutional buyers and conversion of foreign securities. According to the company's Annual Report for 2010-11, Tata Motors had a net debt of Rs 27,086.49 crore as on March 31, 2010.

On standalone basis, the net debt of Tata Motors stood at Rs 13,838.90 crore as on March 31, 2011, compared to Rs 14,930.96 crore year-ago. During the last fiscal, Tata Motors' debt equity ratio improved to 1.71 from 4.28 as on March 31, 2010. The consolidated gross debt that comprises total of secured and unsecured loans has also come down to Rs 32,791.41 crore by the end of 2010-11 fiscal compared to Rs 35,108.36 crore in the previous fiscal. The Annual Report also pointed out that the net interest cost of the company decreased by 8.67% to Rs 2,045.42 crore from Rs 2,239.71 crore of 2009-10.

The company has been successful in containing the costs through borrowings at lower rates and by substituting part of the borrowings through issue of equity. The company has undertaken and expected to continue implementation of suitable steps for raising long-term resources to match the company's fund requirement and to optimize its loan maturity profile.