Jaguar Land Rover (JLR) is said to be at risk of missing its debt reduction goal to become net-debt free by March 2024 due to the global semiconductor shortage, as per Tata Motors’ CFO, PB Balaji. He said, “We have lost at least six months because of the semiconductor issue” and that achieving the net debt target will be a “stretch”. JLR will reconfirm if the target can be reached after looking at its production and sales volumes during the quarterly earnings report. The CFO said that JLR will focus on cashflows and eliminating gross debt rather than refinancing. Its net debt stood at £4.5bn ($5.5bn) as of 30 September 2022 with £1.7bn ($2.1bn) due in 2023. JLR has £5.2bn ($6.4bn) in liquidity of which £3.7bn ($4.5bn) is in cash and £1.5bn ($1.8bn) is in the form of an undrawn revolver facility.
JLR’s dollar bonds were trading slightly higher with its 5.875% 2028s up 1.3 points to 80.4, yielding 11.1%.