Forex components, according to him, have become an important part of Tata Motors' profit. "If you guide us on how you hedge, it will give us a better assessment of the future profitability," he said. He highlighted that it becomes complicated for investors to understand a business where the accounting is in pounds, sales in dollars and sourcing is in Euros. Roughly 80 per cent of production is exported out of the UK, 60 per cent of the revenues are in dollars or dollar linked, while euro accounts for 25 per cent of exports from UK and accounts for 50 per cent of cost, explained the management.
While the Tata Motors' management indicated that in the June quarter presentation the company has given the forex impact above and below the Ebidta line, Jhunjhunwala asked the company to disclose the details in future quarters. The management indicated that they will try to improve the disclosure details going ahead.
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