With net profit up 164%, it was blockbuster FY22 for Tata Sons

BL Mumbai Bureau | | Updated on: Aug 17, 2022
N Chandrasekaran, Chairman, Tata Sons

N Chandrasekaran, Chairman, Tata Sons | Photo Credit: PAUL NORONHA

Revenue rises 33% to ₹12,573 crore; expenses down

Tata Sons’ net profit has zoomed by a record 164 per cent in 2021-22. The company’s annual report, accessed by BusinessLine, shows a significant improvement in its performance in FY22, with profit before tax (PBT) at ₹19,547.02 crore as against ₹7,523.01 crore in the year-ago period.

The salt-to-steel conglomerate’s net profit for the fiscal stood at ₹17,171 crore (₹6,511 crore). Its total revenue for FY22 was at ₹24,132 crore (₹19598.35 crore) and revenue from operations (comprising mainly of dividend income) stood at ₹12,573.13 crore (₹9,460.24 crore), an increase of 32.90 per cent.

On the other hand, the company also managed to reduce its expenses from ₹3,980.57 crore to ₹3,481 crore. The company’s employee costs were ₹521 crore (₹602 crore) and employee benefits expense stood at ₹420 crore.

Salary hike

The conglomerate’s chairman, N Chandrasekaran, got a 19 per cent jump in his annual remuneration, stated the report. His compensation for the year ended March 31, 2022, surged to ₹109 crore, making him one of the highest paid professional chieftains in India. This comes even as Chandrasekaran’s tenure as the Chairman of Tata Sons was extended by another five years earlier this year. Company CFO Saurabh Agarwal’s annual compensation increased 21 per cent to ₹26 crore.

The carrying cost of investments of the company as on March 31, 2022, was at ₹116,604.01 crore compared to ₹95,806.33 crore in the previous year. During the year under review, the company also invested in its new and existing businesses, based on their requirement for capital, for growth and for deleveraging their balance sheets.

Rising market value

The market value of Tata Sons’ listed investments was ₹12,91,844.24 crore as on March 31, 2022, an increase of 25.4 per cent, compared to the previous year. During the fiscal, it has made investments by acquiring Air India and Tejas Network. The group also entered the fintech industry and acquired multiple grocery companies.

The company further made investments in existing businesses, including Tata Advanced Systems Limited, Tata SIA Airlines Limited, Air Asia (India) Private Limited, The Indian Hotels Company Limited, Infiniti Retail Limited, Tata International Limited and Tata Projects Limited during FY22.

The group’s combined market capitalisation as on March 31, 2022, was ₹23,55,174 crore, an increase of 33 per cent compared to the previous year.

Published on August 17, 2022
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