India's homegrown automaker Tata Motors' luxury car unit Jaguar Land Rover (JLR) is targeting revenue of over 28 billion pounds by FY24 and 30 billion pounds by FY26, according to an investor presentation by the company on Monday (June 12). The company also said that its average revenue per unit currently stands at over £70,000.

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The Jaguar Land Rover revenue for FY26 has been targeted at around 30 billion pounds, said interim chief executive officer Adrian Mardell. The investors presentation made by JLR was shared by Tata Motors on stock exchanges.

In the financial year ended March 2023, JLR had clocked revenue of 22.81 billion pounds.

The top official also said that the company is targeting earnings before interest and taxes (EBIT) margin of 6 percent in FY24 and 10 percent in FY26.

The company's interim Chief Financial Officer Richard Molyneux noted that the average revenue per unit has been consistently rising over the past few years. From close to 45,000 pounds in FY19, it has risen to more than 70,000 pounds in FY23, Molyneux said.

JLR plans annual investment of £3 bn by FY26

In a presentation to the investors, the company said, "Reimagine will deliver" and its investment target is 3 billion pounds per annum.

Further, the company said that it is looking at free cash flow of 2 billion pounds by FY24 and "continuing to be significantly positive thereafter".

Net zero debt

JLR aims to reduce the net debt to zero by fiscal 2025. The luxury car unit expects net debt to fall below 1 billion pounds by the next financial year due to its resilience against global headwinds, including the shortage of chips, inflationary pressures, and geopolitical constraints

JLR struggled to expand its electric vehicle line due to a shortage of semiconductors and supply chain disruptions amid Russia's invasion of Ukraine in FY23. Yet, its net debt had reduced to 2.9 billion pounds as against previous fiscal's 3.1 billion pounds. FY24 is expected to follow the trend.

Tata Motors shares have risen 2.47 percent in the last five trading sessions. The stock settled 0.27 percent higher at Rs 563.80 apiece in today's trade. The stock has gained 43 percent on a year-to-date basis and is up 39 percent in a year.

Technically, the relative strength index (RSI) of Tata Motors stood at 72.7, signaling it's trading in the overbought zone. Tata Motors stock has a one-year beta of 1.3, indicating very high volatility during the period. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.