TaMo drives group's finances to new high

Boosted by a sharp rise in Tata Motors' earnings, the combined net profits of listed Tata group companies grew at a double-digit rate in 2023-24 (FY24), and the group balance sheet ratios showed the best health in 18 years.

- KRISHNA KANT

Tata Motors' consolidated net profit was up more than 1,200 per cent to 32,203 crore in FY24 from the 2,351 crore in FY23. The automaker accounted for 36 per cent of the group profits in FY24, a sharp jump from the 3.5 per cent the previous year.

The combined net profits (adjusted for exceptional gains and losses) of the group's listed companies were up 34.9 per cent year-on year (Y-o-Y) to an all-time high of ₹89,766 crore in FY24 from the ₹66,526 crore a year earlier.

With this, the group's combined net profits in the last five years went up at a compound annual growth rate (CAGR) of 15.9 per cent, up from the 3 per cent for the FY14 to FY19 period. However, the group companies' combined earnings had increased at a CAGR of 23.5 per cent during FY09-14, albeit partly due to a small base and a big acquisition. The group's net sales were up 12.4 per cent to ₹11.03 trillion in FY24 from 9.82 trillion in FY23.