Tata Sons, the principal investment holding company of the Tata group, saw a 74% jump in the consolidated net profit to Rs 49,000 crore for FY24, helped by improvements in sectors like information technology, financial lending and airlines.
The Mumbai-headquartered company saw its FY24 consolidated revenue rise to Rs 4.77 lakh crore, an increase of 15% compared to FY23, data from Tata Sons 106th annual report stated. Profit for FY24 attributable to the shareholders of the company has more than doubled to Rs 34,625 crore compared to FY23.
Based on the company’s performance, the directors have recommended a dividend of Rs 35,000, which is double the Rs 17,500 paid in FY23. If approved by the shareholders, it would involve a cash outflow of Rs 1,415 crore (from Rs 707 crore in FY23).
The Tata group’s combined market capitalisation at the end of FY24 was Rs 30.37 lakh crore, an increase of 47% from Rs 20.71 lakh crore a year ago, the report added.
The company is investing to leverage the India growth opportunity and in industries with a large potential driven by global energy transition trend across sectors, imperative for global manufacturers to create a more diversified and resilient supply chain and artificial intelligence/data-led transformation of business.
“The company continues to make investments in businesses to enable them to capitalise on above growth opportunities and to support deleveraging of balance sheets,” the report further added.
Tata Electronics, Air India, Tata Digital, Tejas Networks and Agratas (battery manufacturing) are the new businesses identified and incubated by Tata Sons.
Drawing a remuneration of Rs 135.32 crore, a rise of 20% during FY24, Tata Sons executive chairman N Chandrasekaran retained the title of one of the country’s highest paid CEOs. The 61-year-old is seeking a reappointment as a director of the company who is liable to retire by rotation at the forthcoming annual general meeting.
Tata Sons increased the number of subsidiaries to 322 during FY24, from 289 in FY23. While it added 2 more associate companies, it brought down the number of joint ventures by 5 to 32.
The company has been registered as a core investment company (CIC) with the Reserve Bank of India (RBI). “During the year under review, the company applied to RBI for voluntary surrender of the certificate of registration as a CIC and to continue as an ‘unregistered CIC’, in accordance with the prescribed procedure.
This move was initiated to avoid being listed on the stock exchanges, allowing Tata Sons to remain a closely held private company. This also involved repaying Rs 20,642-crore debt during the year. The company had net cash of Rs 2,679 crore as of the end of FY24. It claimed to have repaid all borrowings other than non-convertible debentures and preference shares aggregating to Rs 363 crore.
From: financialexpress
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