Ford India loss widens to Rs 4,229 cr in FY22, revenue falls 15%

The Indian arm of US carmaker Ford, which had last year decided to exit from the country, saw widening of its loss after tax to Rs 4,229 crore in fiscal 2021-22, according to data provided by Tofler

The Indian arm of US carmaker Ford, which had last year decided to exit from the country, saw widening of its loss after tax to Rs 4,229 crore in fiscal 2021-22, according to data provided by business intelligence platform Tofler.

Ford India Pvt Ltd had posted a loss after tax of Rs 188 crore in 2020-21.

The widening of loss was primarily driven by restructuring and included exceptional items outgo of Rs 4,226 crore.

Revenue from operations in FY22 stood at Rs 10,202 crore as against Rs 12,057 crore in FY21, down 15 per cent.

The total revenue from operations included domestic sale of Rs 2,399 crore, which was 49 per cent lower than the prior year's figure of Rs 4,742 crore, as per regulatory filings by Ford India Pvt Ltd.

"Financial performance for the current year is largely impacted by restructuring decision announced in September 2021. The decision resulted in exit from vehicle and engine manufacturing operations at Chennai and vehicle manufacturing operations at Sanand," the company said.

In terms of volume, Ford India sold 69,223 cars during 2021-22 as compared to 94,112 cars in the prior financial year, down 26 per cent. This included domestic sales of 15,870 cars, as compared to 48,042 units in the previous year, down 67 per cent.

Last year in September, Ford had said it would stop vehicle production at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants in India but would continue to manufacture engines from the Sanand unit which will be exported to the company's global operations.

It had invested about USD 2.5 billion in the two plants but incurred losses of over USD 2 billion in India over the past 10 years. The company also had USD 800 million non-operating write-down of assets in 2019.

Last month, Ford India inked a pact to sell its Sanand plant to Tata Passenger Electric Mobility Ltd (TPEML), a subsidiary of Tata Motors, for Rs 725.7 crore.

Under the pact, Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the same unit from TPEML.