CHENNAI: With the announced closure of its automotive operations, Ford India’s revenue from operations will shrink to less than a fourth of its FY21 tally.
According to a just released report by India Ratings & Research, Ford India’s FY22 revenue will hover around Rs 2,000-3,000 crore, a sharp skid from Rs 13,516 crore in FY21.
The management has now indicated that Ford India’s near-term operational performance would likely be in line with initial FY20 financials of revenue of around Rs 2,052 crore.
Despite the sharp slide in revenue, Ford India still has strong cash and equivalents balance of around Rs 331 crore as on September 15 compared to nearly Rs 380 crore in FY21 said the report.
Ford India’s net debt stood at just over Rs 6,316 crore as on September 15, 2021 compared to FY21 tally of nearly Rs 5,230 crore though 70% of this is in the form of inter corporate loans from its parent.
The management of Ford India has indicated that its parent Ford Motor Co will support its India restructuring costs. This is similar to the parent company’s track record of restructuring in other geographies, said the report.
Ford India had announced that its parent expects a charge of $2 billion mainly over FY22-FY24, of which cash outflows would be $1.7 billion and the remaining would be non-cash.
According to a just released report by India Ratings & Research, Ford India’s FY22 revenue will hover around Rs 2,000-3,000 crore, a sharp skid from Rs 13,516 crore in FY21.
The management has now indicated that Ford India’s near-term operational performance would likely be in line with initial FY20 financials of revenue of around Rs 2,052 crore.
Despite the sharp slide in revenue, Ford India still has strong cash and equivalents balance of around Rs 331 crore as on September 15 compared to nearly Rs 380 crore in FY21 said the report.
Ford India’s net debt stood at just over Rs 6,316 crore as on September 15, 2021 compared to FY21 tally of nearly Rs 5,230 crore though 70% of this is in the form of inter corporate loans from its parent.
The management of Ford India has indicated that its parent Ford Motor Co will support its India restructuring costs. This is similar to the parent company’s track record of restructuring in other geographies, said the report.
Ford India had announced that its parent expects a charge of $2 billion mainly over FY22-FY24, of which cash outflows would be $1.7 billion and the remaining would be non-cash.