Tata Sons, the holding company of the Tata group, recorded a 74 percent increase in consolidated net profit for FY24 at Rs 49,000 crore, according to the firm’s annual report. The steller performance was driven by improvements in sectors like information technology, financial lending and airlines, as per the report released on September 6.
Tata Sons saw its FY24 consolidated revenue rise by 15 percent to Rs 4.77 lakh crore compared to FY23. Of the total profit, the portion attributable to shareholders stood at Rs 34,625 crore more than double of Rs 16,847.79 crore in FY23. The company’s consolidated revenue jumped by 14.64 percent to Rs 4.76 lakh crore.
Key highlights
Total revenue of the company for FY24 stood at Rs 43,893 crore compared to Rs 35,058.47 crore in the previous year, an increase of 25 percent. Its total expenses of Rs 2,776.49 crore was lower by 27 percent compared to Rs 3,794.70 crore in FY23.
The company posted a gain of 57 percent as its profit after tax (PAT) stood at Rs 34,653.98 crore (an increase of Rs 12,521.60 crore) compared to FY23. During the year under review, the company repaid all borrowings other than Non-Convertible Debentures and preference shares aggregating to Rs 363 crore.
It reported net cash of Rs 2,679.19 crore as of March 31, 2024, compared to net debt of Rs 20,642.47 crore as of March 31, 2023.
The market value of Tata Sons’ listed investments increased by 35.7 percent to Rs 15,20,560.60 crore as of March 31, 2024, compared to Rs 11,20,545.24 crore in the previous year, the report added.
The group’s combined market capitalisation as of March 31, 2024, was Rs 30,36,905 crore compared to Rs 20,71,467 crore in the previous year, registering a gain of 47 percent.
The group’s aviation business including Air India, Air India Express, Tata SIA Airlines (Vistara) and AIX Connect (formerly AirAsia India), narrowed losses to Rs 6,337 crore compared to Rs 15,414 crore in FY23. The group’s digital and electronics business grew 148 percent to Rs 1,612 crore with net losses widening to Rs 2,223 crore from Rs 1,723 crore.
Air India recorded its highest consolidated operating revenue at Rs 51,365 crore powered by growth in capacity. The revenue was 24.5 percent higher compared to the last financial year, the report said.
Tata Digital saw its portfolio’s user base growing to 20.76 million transacting customers, providing an aggregate merchandise value of Rs 37,355 crore, the annual report said.
Declaration of dividend
The Mumbai-headquartered company’s board of directors have recommended a dividend of Rs 35,000 double the amount of Rs 17,500 paid in FY23, which will involve a cash outflow of Rs 1,415 crore (from Rs 707 crore in FY23) if approved by the shareholders.
The directors have also recommended dividend on the Cumulative Redeemable Preference Shares (CRPS) amounting to Rs 19.78 crore compared to Rs 20.22 crore last year. The board at its meeting held on June 3, has approved the dividend on CRPS for the period from April 1, till the date of redemption of CRPS.
Remunerations
The remuneration of Tata Sons Chairman N Chandrasekaran went up 19.8 percent to Rs 135.3 crore in 2023-24, according to its annual report. Chandrasekaran earned Rs 121.5 crore in commissions while the rest was his salary and perquisites. The remuneration of all Tata Sons directors rose 16 percent with the company paying Rs 200 crore to the top tier compared to Rs 172.5 crore in 2022-23, as per the report.
