In FY24 Tata Sons saw a 35 per cent fall in dividend income at ₹21,528.9 crore, which accounts for its largest revenue stream, according to the annual report for the last fiscal year. The company has also strengthened its balance sheet by wiping out its debt.

The decrease in dividend income resulted in the company’s revenue from operations falling 31.6 per cent to ₹23,856.8 crore. However net profit rose around 57 per cent to ₹34,654 crore, aided by other income that rose multifold to over ₹20,000 crore and expenses declining by 27 per cent.

The break-up of the income components showed a 38 per cent fall in dividends from subsidiary companies. However brand subscription income doubled on year to ₹1760 crore.

Tata Sons is the holding entity for companies under the group and a large part of its income is derived from the dividends paid by the companies in which it holds substantial stakes. It was registered as a Core Investment Company with the Reserve Bank of India, to which it has applied to surrender the CIC registration.

The total market cap of the group rose 47 per cent during the year to ₹30.3 lakh crore, while the market value of its listed investments rose over 35 per cent to ₹15.2 lakh crore.

Debt free

A significant highlight of the year was that of the company wiping out its debt and becoming net cash positive. At the end of March 31, 2024, the company had net cash of ₹2679 crore compared to net debt of ₹20,642.5 crore a year ago.

Wiping out its debt is an important step for the holding company, which is not keen to be publicly listed as required under RBI guidelines that have classified it as an upper layer NBFC.

During the year, excluding taxes, Tata Sons generated ₹21,397 crore from operating activities.

The company said it had repaid all borrowings during the year other than ₹363 crore worth non-convertible debentures and preference shares.

Related Topics