CHENNAI: With the announced closure of its automotive business, Ford India’s operating sales will shrink to less than a quarter of FY21.
According to a recently published report by India Ratings & Research, Ford India sales will fluctuate around Rs 2,000-3,000 crore in FY22, a sharp drop from Rs 13,516 crore in FY21.
Management has now indicated that Ford India’s near-term operating performance would likely be in line with FY20’s initial financial results of approximately Rs 2.052 billion.
Despite the sharp drop in sales, Ford India still has strong cash holdings of around Rs.331 billion as of September 15, compared to nearly Rs.380 billion in FY21, the report said.
Ford India’s net debt was just over Rs. 6,316 billion as of September 15, 2021, compared to a balance sheet of nearly Rs. 5,230 billion in FY21, although 70% of that is in the form of intercompany loans from the parent company.
Ford India management has announced that its parent company Ford Motor Co will bear the restructuring costs for India. This is comparable to the parent company’s track record of restructuring in other regions, the report said.
Ford India had announced that its parent company expected a $ 2 billion charge mainly between FY22 and FY24, of which the cash outflows would be $ 1.7 billion and the remainder non-cash.
According to a recently published report by India Ratings & Research, Ford India sales will fluctuate around Rs 2,000-3,000 crore in FY22, a sharp drop from Rs 13,516 crore in FY21.
Management has now indicated that Ford India’s near-term operating performance would likely be in line with FY20’s initial financial results of approximately Rs 2.052 billion.
Despite the sharp drop in sales, Ford India still has strong cash holdings of around Rs.331 billion as of September 15, compared to nearly Rs.380 billion in FY21, the report said.
Ford India’s net debt was just over Rs. 6,316 billion as of September 15, 2021, compared to a balance sheet of nearly Rs. 5,230 billion in FY21, although 70% of that is in the form of intercompany loans from the parent company.
Ford India management has announced that its parent company Ford Motor Co will bear the restructuring costs for India. This is comparable to the parent company’s track record of restructuring in other regions, the report said.
Ford India had announced that its parent company expected a $ 2 billion charge mainly between FY22 and FY24, of which the cash outflows would be $ 1.7 billion and the remainder non-cash.
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