TTM - Jaguar Land Rover to write off £1.5B in Q4

Tata Motors' (TTM) Jaguar Land Rover ((JLR)) will write off £1.5B, as part of a restructuring exercise under its ‘Reimagine’ strategy.JLR said, “Exceptional one-time non-cash write down of c. £1 billion for higher previous spending and certain planned products that will not be completed.” The cash write off of £500 million will be offset by positive cash flow in FY22.“JLR expects to be cashflow positive by FY23 and generate net cash from FY25,” added Ardian Mardell, CFO, JLR.Under Reimagine, JLR plans to cut annual spending by £2.5B and aims to increase EBIT from the current 4% to over 10% by FY26.Jaguar is expecting 300 basis points of margin improvement as a result of refocusing its product portfolio.Last month, JLR unveiled plans to spend $3.5B annually on electric vehicles and connected car technology.

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Jaguar Land Rover to write off £1.5B in Q4