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HomeNewsEnterprise ITTata Sons rides high on tech as profit swells to doubles in FY22

Tata Sons rides high on tech as profit swells to doubles in FY22

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The majority of the gains for Tata Sons resulted from participation in the TCS share buyback and dividends received from the software services firm.

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In the fiscal year 2022, the earnings of the Indian multinational conglomerate more than doubled, despite the fact that global technology businesses such as are struggling to rein in their escalating losses.

According to Tata Sons, the majority of the gains were made by participating in the share buyback of TCS and by receiving dividends from the software services firm. Profit soared 164% from Rs 6,512 crore to Rs 17,171 crore in fiscal 2021.

In addition, , who was reappointed as Tata Sons chairman in February, had his yearly salary increase by 19% to Rs 109 crore in FY22, making him one of the highest-paid professional leaders in the country.

This month, the firm has scheduled an annual general meeting to seek shareholder approval on the revision of its articles of association (AoA) regarding the chairman's appointment procedure and the appointment of financial expert Anita George as an independent director. With the addition of George, the Tata Sons board will have 10 members.

Tata Sons stated in its FY22 report that it had received a request from and , the company's two controlling shareholders, to include in its Articles of Association that “a person who is the chairman of either of the Trusts or of both will not be eligible to serve concurrently as the chairman of the company's board.” This means that whoever succeeds Ratan Tata as chairman of Tata Trusts will not be able to serve as chairman of Tata Sons, which has 286 companies worldwide.

The company's revenue, which primarily consists of dividend income and brand royalty payments, increased by 33% to Rs 12,572 crore. Other income, primarily gains from selling a portion of its shareholding in TCS's share repurchase scheme, increased from Rs 10,138 crore in FY21 to Rs 11,560 crore in FY22.

Participating in the TCS share repurchase programme resulted in a gain of Rs 11,164 crores, and the software services division provided a dividend income of Rs 9,609 crores. The debt and borrowings remained at Rs 30,961 crore, nearly the same as in FY21. Cash and bank accounts decreased by 50 per cent to Rs 452 crore. Expenses fell 13% to Rs 3,482 billion.

However, personnel costs increased by 10% to Rs 420 crore. The yearly remuneration of the company's CFO, Saurabh Agarwal, climbed by 21% to Rs 26 crore.

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Tech Observer Desk
Tech Observer Desk
Tech Observer Desk at TechObserver.in is a team of technology reporters led by a senior editor who brings latest updates and developments from the world of technology.
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