JLR's sales decline may hit Tata Tech, Tata Elxsi

Jaguar Land Rover is expecting lower revenue and profit this fiscal year

- Ayaan Kartik & Jas Bardia

A decline in Jaguar Land Rover's sales this fiscal year may drag down business for Tata Elxsi Ltd and Tata Technologies Ltd, which get more than a fifth of their revenues from the British subsidiary of Tata Motors Ltd.

Business was already slowing for Tata Elxsi and Tata Technologies, after their European auto clients came under stiff challenge from Chinese rivals. With JLR expecting lower revenue and profit this financial year, things may be about to get worse.

"JLR's cash flow constraints may delay discretionary spends, but key strategic tech tie-ups are likely to stay on track," said Sanket Kelaskar, analyst, institutional equity at Ashika Group.