Business Business: Tata Sons, the holding company of the Tata Group, reported a 74 per cent rise in consolidated net profit to Rs 49,000 crore in FY24, according to the firm’s annual report. According to the report released on September 6, this stellar performance was seen due to improvement in sectors such as information technology, financial loans and airlines. Tata Sons saw its consolidated revenue grow 15 per cent to Rs 4.77 lakh crore in FY24 as compared to FY23. The share paid to shareholders out of the total profit stood at Rs 34,625 crore, more than double from Rs 16,847.79 crore in FY23. The consolidated revenue of the company grew 14.64 per cent to Rs 4.76 lakh crore.
The total revenue of the company in FY24 grew 25 per cent to Rs 43,893 crore as compared to Rs 35,058.47 crore in the previous year. Its total expenses stood at Rs 2,776.49 crore, down 27 per cent as against Rs 3,794.70 crore in FY23.
The company registered a growth of 57 per cent as its profit after tax (PAT) stood at Rs 34,653.98 crore (an increase of Rs 12,521.60 crore) as compared to FY23. During the year under review, the company repaid all borrowings other than non-convertible debentures and preference shares, which totalled Rs 363 crore.
The company had net cash of Rs 2,679.19 crore as on March 31, 2024, while the net debt of the company stood at Rs 20,642.47 crore as on March 31, 2023.
The report said the market value of Tata Sons’ listed investments grew 35.7 per cent to Rs 15,20,560.60 crore as of March 31, 2024, as against Rs 11,20,545.24 crore last year.
The combined market capitalisation of the group was Rs 30,36,905 crore as of March 31, 2024, as against Rs 20,71,467 crore last year, showing a growth of 47 per cent.
The loss of the group’s aviation business, including Air India, Air India Express, Tata SIA Airlines (Vistara) and AIX Connect (formerly AirAsia India), narrowed to Rs 6,337 crore in FY23 as against Rs 15,414 crore in FY23. The group’s digital and electronics business grew 148 per cent to Rs 1,612 crore, while net loss widened to Rs 2,223 crore from Rs 1,723 crore.
Air India reported its highest ever consolidated operating revenue of Rs 51,365 crore on the back of capacity addition. The revenue was up 24.5 per cent over the previous fiscal, the report said.
The annual report said Tata Digital saw its portfolio’s user base grow to 20.76 million transacting customers, generating a total merchandise value of Rs 37,355 crore.
Dividend declaration
The board of directors of the Mumbai-headquartered company has 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 shareholders.
The directors have also recommended a dividend of Rs 19.78 crore on cumulative redeemable preference shares (CRPS), as against Rs 20.22 crore last year. In its meeting held on June 3, the board has approved dividend on CRPS for the period from April 1 to the date of redemption of CRPS.
Remuneration
Tata Sons chairman N Chandrasekaran’s remuneration rose 19.8 per cent to Rs 135.3 crore in 2023-24, according to its annual report. Chandrasekaran earned Rs 121.5 crore from commission while the rest was his salary and allowances. According to the repo, the remuneration of all directors of Tata Sons has increased by 16 per cent and the company has paid Rs 200 crore to top-level directors, as against Rs 172.5 crore in 2022-23.
