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The Tata Group, one of India's most prominent conglomerates, has experienced a remarkable year in FY24, marked by significant financial growth and strategic decisions. The company's annual report revealed a 74% surge in consolidated net profit, reaching Rs 49,000 crore, demonstrating a robust performance across its diverse portfolio of businesses. This impressive financial performance was accompanied by a notable increase in the salary of Tata Sons chairman N Chandrasekaran, who saw a 20% jump in his compensation to ₹135.32 crore. The bulk of this compensation, ₹121.5 crore, was attributed to commission, highlighting the company's commitment to rewarding its leadership for driving exceptional results.
The Tata Group's revenue also witnessed a substantial increase, rising 25% from the previous year to ₹43,893 crore. This growth reflects the company's successful expansion into new markets and the continued strong performance of its existing businesses. The group's profit after tax further solidified its financial strength, climbing 57% to ₹12,521.6 crore. Despite this impressive financial performance, the Tata Group maintained a debt of ₹20,642.47 crore at the end of March 2024, demonstrating a balanced approach to financial management.
The Tata Group's market value has also witnessed remarkable growth. The group's total market capitalisation increased by a substantial 47% to ₹30.4 lakh crore, while the value of its listed companies rose by 35.7% to over ₹15.2 lakh crore. This growth underscores the investor confidence in the Tata Group's future prospects. As of March 2024, the Tata Group boasted a vast network of 322 subsidiaries, 40 associates, and 32 joint ventures, showcasing its extensive reach and diverse business interests.
To further reward its stakeholders, the Tata Group announced a record-breaking dividend payout of ₹35,000, double the amount distributed in the preceding year. This substantial dividend reflects the company's commitment to shareholder value and its confidence in its future earnings potential. The group's aviation business, which includes Air India, Vistara, Air India Express, and AIX Connect, saw significant improvement in its financial performance. Losses from this segment more than halved to ₹6,337 crore in FY24 compared to ₹15,414 crore a year earlier, indicating progress in the restructuring and turnaround of the aviation operations.
Source: Tata Group doubles dividend and gives Chairman Chandrasekharan a 20% raise — here's why