Tata Group¡¯s Parent Company Tata Sons' Profit Shoots Up 164% To Rs 17,171 Crore In FY 2021-22

Tata group¡¯s principal investment holding company and promoter Tata Sons has witnessed a massive 164% jump in its profit for FY2021-22.

Tata Sons profit was boosted by gains made from participating in the share buyback of TCS as well as by dividends received from the software services company. Its profit zoomed 164% to Rs 17,171 crore vs nearly Rs 6,512 crore in FY 2020-21, as per TOI report.

The annual compensation of Tata Sons' chairman N Chandrasekaran rose 19% to Rs 109 crore in FY22. He was reappointed as Tata Sons chairman in February 2022,

As per its recently released annual report, the company has called for an annual general meeting this month to seek shareholders¡¯ approval on the amendment of its articles of association (AoA) dealing with the chairman¡¯s appointment process as well as on the appointment of investment specialist Anita George as an independent director. With George¡¯s induction, the Tata Sons board will expand to 10 members.

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In its FY2021-22 report, Tata Sons said that it has received a request from Sir Dorabji Tata Trust and Sir Ratan Tata Trust (the two controlling shareholders of the company) to include in its AoA that ¡°A person who is the chairman of either of the Trust or of both will not concurrently be eligible to be the chairman of the company¡¯s board¡±.

This means that whoever will succeed current Tata Trusts chairman Ratan Tata will not be able to occupy the chairman¡¯s seat at Tata Sons, which has 286 subsidiaries across the world, the TOI report mentioned.

Tata Sons¡¯ CFO Saurabh Agarwal¡¯s annual compensation increased 21% to Rs 26 crore, and the overall employee costs reportedly rose 10% to Rs 420 crore.

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Also Read: List Of All Companies Owned By The Tata Group

More Details About The Financial Results Of FY2021-22

The company¡¯s revenue, mainly the dividend income and brand royalty fees, rose 33% to Rs 12,573 crore. Other income, largely profits netted from selling part of its stake in the share repurchase scheme of TCS, was higher at Rs 11,560 crore as compared to Rs 10,138 crore in FY21.

It also made a gain of Rs 11,164 crore from participating in the TCS share buyback scheme and received a dividend income of Rs 9,609 crore from the software services unit. Debt and borrowings stood at Rs 30,961 crore, almost at the same level of FY21. Cash and bank balances fell 50% to Rs 452 crore. Expenses decreased 13% to Rs 3,482 crore, as per the report.