Ratan Tata Headed Tata Trusts To Receive A Massive Rs 267 Crore As Dividend Income From Tata Sons

One of the oldest philanthropic institutions in India, the Tata Trusts, will reportedly earn a mammoth Rs 267 crore as dividend income from Tata Sons for 2021-22 (FY22). About 66 % of the group¡¯s equity capital is with the trusts owned by the Tata family. the Trust has been headed by One of India¡¯s biggest industrialists and philanthropists Mr.Ratan Tata since the year 1993.

Tata Sons has announced a dividend of Rs 10,000 per share at the rate of 1,000%. It is the unlisted holding company of Tata Group of companies.

Once approved by its shareholders on August 30th 2022, the dividend will lead to a total outflow of Rs 404 crore for FY22. The Mistry family will earn Rs 75 crore as dividend income on its 18.5% stake in the company, as per Business Standard report.

The dividend from Tata Sons is the main source of income for Tata Trusts which will use the proceeds towards health care, environment, education, and skill development.

Earlier, Tata Sons had also committed Rs 1,000 crore towards tackling Covid in 2020-21 (FY21).

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Also Read: Tata Group To Raise Funds For Investing Rs 60,000 Crore

Financial Results For FY22

The annual report for the financial year ended March 2022 gave details of compensation paid to directors, profit etc.

For FY22, Tata Sons announced a mammoth net profit of Rs 17,171 crore on a total revenue of Rs 24,132 crore on a standalone basis, thanks to generous dividend payments from its subsidiary, Tata Consultancy Services (TCS), the Business Standard report mentioned.

N Chandrasekaran, executive chairman of Tata Sons, received a compensation of Rs 109 crore for FY22.

Ajay Piramal, chairman of Piramal Group, earned a commission of Rs 2.25 crore in FY21, while former Titan Company managing director Bhaskar Bhat earned a similar amount as commission on profits.

Venu Srinivasan, vice-chairman of Tata Trusts, did not receive any payout from Tata Sons - he had recused from receiving compensation from the company.

Independent director Harish Mawani received a commission on profit of Rs 2.6 crore, while non-executive director Ralf Speth took home a commission of a similar sum.

Also, unlike previous years, when Tata Teleservices drained Tata Sons¡¯ cash flow, FY22 was much better, the report mentioned.

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