Tata Sons reported a 164 per cent boost in their profit in financial year 2022 supported by the gains made from participating in the share buyback of Tata Consultancy Services along with dividends received from the company. Its profit more than doubled in the year to Rs 17,171 crore from Rs 6,512 crore in fiscal 2021.
The total revenue of the company for FY22 was Rs 24,133 crore compared to Rs 19,598 crore in the previous year. Tata Sons’ revenue from operations jumped 33 per cent to Rs 12,573 crore and comprised mainly of dividend income and brand royalty fees.
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 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.
N Chandrasekaran’s salary
Moreover, the salt-to-software conglomerate’s chairman N Chandrasekaran got a 19 per cent jump in his annual remuneration. His compensation for the year ended March 31, 2022 surged to Rs 109 crore, making him one of the highest paid professional chieftains in India.
Company CFO Saurabh Agarwal’s annual compensation increased 21 per cent to Rs 26 crore.
The company’s accrued employee costs were Rs 521 crore as against Rs 602 in the year-ago period. Its employee benefits expense stood at Rs 420 crore.
Chairman of company’s board
In its FY22 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 Article of Association 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 i. e. Ratan Tata will not be able to occupy the chairman’s seat at Tata Sons, which has 286 subsidiaries across the world.
Both Sir Dorabji Tata Trust and Sir Ratan Tata Trust hold over 5 per cent in the company, with the former owning 1,13,067 shares as of March 31, 2022 and the latter holding 95,211 shares.
For financial year 2022, Tata Sons’ debt and borrowings came out to be Rs 30,961 crore, almost at the same level of FY21. Cash and bank balances fell 50 per cent to Rs 452 crore while expenses reduced 13 per cent to Rs 3,482 crore.
