Tata Sons FY20 profit doubles with TCS help – Times of India

Reeba.Zachariah@timesgroup.com
Mumbai: Tata Sons saw its profit more than doubling in fiscal 2020, driven by higher dividend contribution from its software services subsidiary TCS. Profit soared 130% to Rs 2,680 crore from Rs 1,145 crore in fiscal 2019. The profit could have been higher, but it made a provision of Rs 16,439 crore towards the liabilities of Tata Teleservices, an analysis of the Tata Sons FY20 report revealed.
The holding company of the Tata Group has so far written off Rs 60,000 crore of its investments in the loss-making telecom business. Revenue from operations, which mainly comprise dividend income and brand royalty fees, rocketed 158% to Rs 24,770 crore.
TCS’s contribution to revenue increased to more than 90% from 77% in fiscal 2019.
Dividend income of the investment company, which owns shares in more than 100 entities including 28 listed firms, was Rs 23,994 crore, compared with Rs 8,202 crore in fiscal 2019. Other income for fiscal 2020 was lower at Rs 126 crore as compared to Rs 10,630 crore in fiscal 2019. This is because in fiscal 2019 other income predominantly comprised profit from buyback of shares by TCS and Tata Investment Corporation.
Tata Sons’ debt, however, remained flat at Rs 31,319 crore, according to the fiscal 2019-20 report.