Unlisted Tata Sons, the holding company of the Tata group, has reported a 24.30 per cent fall in its standalone net profit at Rs 26,231.74 crore for the year ended March 2025 as against Rs 34,653.98 crore in the previous year. Despite the fall in profits, the directors of the company, headed by Chairman N Chandrasekaran, have recommended a higher dividend of Rs 64,900 per share (6,490 per cent) for FY25 as against Rs 35,000 (3,500 per cent) in the previous year.
Total revenue of the company also declined by 11.52 per cent to Rs 38,834.58 crore in FY25 from Rs 43,893 crore in the previous year, Tata Sons said in its annual report. The total revenue of the previous included a profit of Rs 9,375.66 crore from sale of investments, it said.
The higher dividend will mostly go to Tata Trusts which hold 66 per cent stake in the company. The Shapoorji Pallonji group holds around 18 per cent stake. Tata Sons has been doubling the dividend in the last couple of years. In FY23, it paid a dividend of Rs 17,500 per share.
The company drives its income mostly from dividend earned from various group companies with TCS contributing the maximum to Tata Sons’ kitty. It holds a 71.77 per cent stake in TCS which paid out a total dividend of Rs 44,962 crore in FY25.
Meanwhile, the consolidated revenue of Tata Sons was higher at Rs 592,673 crore in FY25 as against Rs 476,725 crore in the previous year.
The company had applied to the RBI for voluntary surrender of the certificate of registration as a core investment company (CIC) and to continue as an ‘unregistered CIC’ in accordance with the prescribed procedure. “The application is under examination by the RBI,” Tata Sons Annual Report said.
Chandrasekaran’s salary rises by 15%
Despite a fall in the profit and revenue of Tata Sons, Chairman N Chandrasekaran received a 15 per cent hike in salary and commission at Rs 155.81 crore, probably making him one of highest paid CEOs in the country. His salary in FY24 was Rs 135 crore.
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Chandrasekaran’s salary package included Rs 15.12 crore as salary and Rs 140.69 crore as commission, according to the annual report.
According to the report, Noel Tata holds 4,058 shares in Tata Sons, making him the only shareholder among the directors of the company. He will get around Rs 26.33 crore as dividend from the company.
Saurabh Agrawal, executive director of Tata Sons, received a salary package of Rs 32.68 crore from the company. This included Rs 26 crore as commission.
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