Now Reading: Tata Sons earned Rs 2.71 lakh crore dividend under Chandrasekaran
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Tata Sons earned Rs 2.71 lakh crore dividend under Chandrasekaran
Tata Sons earned Rs 2.71 lakh crore dividend under Chandrasekaran
Tata Sons earned cumulative dividend income of nearly Rs 2.71 lakh crore during N Chandrasekaran's tenure as chairman from FY17 to FY26, far exceeding his predecessors. Tata Consultancy Services contributed Rs 2.48…
Tata Sons earned cumulative dividend income of nearly Rs 2.71 lakh crore during N Chandrasekaran's tenure as chairman from FY17 to FY26, far exceeding his predecessors. Tata Consultancy Services contributed Rs 2.48 lakh crore, or 91.7 per cent of the total, through dividends and share buybacks.
Chandrasekaran used the dividend bonanza to invest nearly Rs 1 lakh crore in group unlisted ventures such as Tata Digital, Tata Electronics and Air India. In contrast, under Cyrus Mistry (FY13-FY16) Tata Sons earned about Rs 27,800 crore in dividends, and under Ratan Tata (FY00-FY12) it earned around Rs 27,700 crore.
Many unlisted ventures continue to make losses and may require further equity support from Tata Sons.
Indian Opinion Analysis
Chandrasekaran's tenure marks a structural shift in how the Tata group funds expansion. Unlike Ratan Tata, who sold a stake in TCS to raise capital, Chandrasekaran used TCS's near-100 per cent profit payout to finance new bets in digital, electronics and aviation. The holding company's equity investment in unlisted ventures, at Rs 1 lakh crore, is over six times the combined unlisted investment of the two previous chairmen. The risk is concentrated: TCS contributes over 90 per cent of dividend income, and several new ventures are loss-making. The next chairman will inherit both the portfolio and the question of whether TCS's dividend stream can sustain further capital calls.
The Tata Sons board will elect a new chairman. The succession decision is expected to be announced in the coming months.
Source: rediff.com
This brief was synthesised by AI from the source linked above.
