JLR to write off 1.5 billion pounds in March quarter as part of restructuring

JLR expects to be cashflow positive by FY23 and generate net cash from FY25.

Jaguar Land Rover (JLR) on February 26 said it would take a one-time write off of 1.5 billion pounds (including cash and non-cash) in the March quarter, as part of its one-time restructuring exercise.

Ardian Mardell, Chief Financial Officer, JLR, said in a presentation to investors that the restructuring exercise was a part of its "Reimagine" strategy.

"Exceptional one-time non-cash write down of c. £1 billion for higher previous spending and certain planned products that will not be completed," Tata Motors' UK subsidiary said.

The cash write-off of 500 million GBP will be offset by positive cash flow in FY22.

Under the Reimagine strategy, JLR plans to a develop a "more focused" product portfolio and cut annual spending to about 2.5 billion pounds.

JLR expects to be cashflow positive by FY23 and generate net cash from FY25, Mardell told investors.

In the December quarter, JLR had taken a write-off of 3.7 billion pounds, amid uncertainties related to Brexit and a slowdown in China.