<p>Further, a break-even scenario for the luxury car maker could substantially boost the earnings of its parent Tata Motors.<br /><br />“We expect a recovery in JLR volumes by fiscal year 2011, led by the anticipated recovery in the global economy as well as new model launches.<br /><br />“We believe the twin effect of volume-recovery and aggressive cost cutting measures would likely lead to break-even for JLR by fiscal year 2011,” brokerage firm IDFC SSKI said in a report.<br /><br />Slowdown effect<br /><br />Tata Motors acquired JLR from American car maker Ford Motor last year for about US$2.3 billion.<br /><br />JLR has been severely hit by the ongoing financial turmoil and has witnessed falling sales. Moreover, Tata Motors reported a loss of Rs 2,300 crore for the fiscal year 2009, primarily bogged down by the losses at JLR.<br /><br />“Given the substantial stress on Tata Motors Ltd’s earnings on account of losses at JLR (TML posted a Rs 23 billion loss in fiscal year 2009 due to the Rs 22 billion loss at Jaguar Land Rover), even a break-even situation at JLR is expected to significantly boost Tata Motors Ltd’s earnings going forward,” the report said.</p>
<p>Further, a break-even scenario for the luxury car maker could substantially boost the earnings of its parent Tata Motors.<br /><br />“We expect a recovery in JLR volumes by fiscal year 2011, led by the anticipated recovery in the global economy as well as new model launches.<br /><br />“We believe the twin effect of volume-recovery and aggressive cost cutting measures would likely lead to break-even for JLR by fiscal year 2011,” brokerage firm IDFC SSKI said in a report.<br /><br />Slowdown effect<br /><br />Tata Motors acquired JLR from American car maker Ford Motor last year for about US$2.3 billion.<br /><br />JLR has been severely hit by the ongoing financial turmoil and has witnessed falling sales. Moreover, Tata Motors reported a loss of Rs 2,300 crore for the fiscal year 2009, primarily bogged down by the losses at JLR.<br /><br />“Given the substantial stress on Tata Motors Ltd’s earnings on account of losses at JLR (TML posted a Rs 23 billion loss in fiscal year 2009 due to the Rs 22 billion loss at Jaguar Land Rover), even a break-even situation at JLR is expected to significantly boost Tata Motors Ltd’s earnings going forward,” the report said.</p>