MUMBAI: Record dividend doled out by Tata Consultancy Services (TCS) last fiscal brought relief to parent Tata Sons, providing chairman Cyrus Mistry enough ammunition to meet the $103-billion conglomerate's financial commitments in troubled and cash-guzzling units.
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TCS emerged India's top dividend payer when it rewarded shareholders with Rs 15,474-crore bounty, beating state-owned Coal India which historically has been the highest dividend payer. Coal India gave away a Rs 13,075-crore dividend last fiscal. Tata Sons, which owns 74% stake in TCS, took home Rs 11,450 crore (more than double the FY14 dividend), boosting the corpus of the country's largest business house.
TCS' total payout to Tata Sons alone is a little more than pharma major Cipla's consolidated revenue for FY15 and about 50% more than Dabur's.
This comes at a time when the group's traditionally large businesses such as Tata Motors and Indian Hotels Company (IHCL) haven't paid any dividend owing to losses. Others like Tata Teleservices, with a negative net worth, need financial support. Tata Motors has a consolidated debt of Rs 73,610 crore, the highest in the group, followed by the Rs 69,000 crore of Tata Steel, which has struggled with multi-billion-dollar write-offs, and Tata Teleservices' Rs 35,000 crore.
"A significant part of the dividend income earned by Tata Sons gets re-invested in group companies," said a Tata executive, citing the recent Rs 7,500-crore Tata Motors rights issue where Tata Sons participated and also picked up the Tata Trusts' lot, increasing its stake marginally.
Source - TOI
www.sevagiri.com
TCS emerged India's top dividend payer when it rewarded shareholders with Rs 15,474-crore bounty, beating state-owned Coal India which historically has been the highest dividend payer. Coal India gave away a Rs 13,075-crore dividend last fiscal. Tata Sons, which owns 74% stake in TCS, took home Rs 11,450 crore (more than double the FY14 dividend), boosting the corpus of the country's largest business house.
TCS' total payout to Tata Sons alone is a little more than pharma major Cipla's consolidated revenue for FY15 and about 50% more than Dabur's.
This comes at a time when the group's traditionally large businesses such as Tata Motors and Indian Hotels Company (IHCL) haven't paid any dividend owing to losses. Others like Tata Teleservices, with a negative net worth, need financial support. Tata Motors has a consolidated debt of Rs 73,610 crore, the highest in the group, followed by the Rs 69,000 crore of Tata Steel, which has struggled with multi-billion-dollar write-offs, and Tata Teleservices' Rs 35,000 crore.
"A significant part of the dividend income earned by Tata Sons gets re-invested in group companies," said a Tata executive, citing the recent Rs 7,500-crore Tata Motors rights issue where Tata Sons participated and also picked up the Tata Trusts' lot, increasing its stake marginally.
Source - TOI
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