The Tata group's main holding and promoter company reported a gross debt of ₹363.2 crore at the end of March this year, down sharply from ₹22,176 crore at the end of FY23. Against this, the company reported cash and equivalents worth ₹3,042 crore at the end of FY24, up from ₹1,534 crore a year ago. This translated into a negative net debt of ₹2,679.2 crore.
At its peak, Tata Sons had an outstanding debt of ₹31,603 crore at the end of March 2020 and a net debt-to-equity ratio of 0.56.
A combination of a debt-free balance sheet and a steadily growing dividend income from group listed companies such as Tata Consultancy Services, Tata Motors, Titan, and Tata Consumer provides financial firepower to Tata Sons to scale up investment in new ventures or step up dividend payouts. Last time when Tata Sons was debt-free on a net basis in FY06, it was followed by a string of large cross-border acquisitions, which transformed the group.
Historically, there is a high correlation between the Tata Sons balance sheet leverage ratio and the pace of its equity investment in various ventures.
A low leverage ratio, such as in 2005-06 and 2014-15, has been followed by a spurt in Tata Sons' equity investment in various listed and unlisted ventures. (See the adjoining charts.) For example, at the end of March 2006, Tata Sons had reported a gross debt of ₹2,316 crore and cash and equivalents worth ₹2,471 crore.
Denne historien er fra October 16, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 16, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
A singular life in plural India
In India today it is difficult to imagine a period of uninterrupted communal harmony, with reports of lynching, hate speech and bigotry surfacing with rising frequency.
11 dead in fire after LPG tanker crashes into vehicles on Jaipur-Ajmer highway
An LPG tanker collided with a truck on Friday, sparking a massive fireball that turned a stretch of the Jaipur-Ajmer highway into an inferno in which 11 people were killed and 37 vehicles engulfed in flames.
FMCG firms roll out tailored offerings for golden years
Affluent and health conscious, mature consumers are becoming selective about what they buy. Businesses are stepping up to meet their needs
SPHERES OF INFLUENCE
New districts are being announced more because of demands by influential groups than empirical studies, usually in the buildup to elections
Accenture Q1 showing a shot in arm for IT stocks
Strong US economy bodes well for Indian IT firms, say analysts
Sun Pharma: Down, but not out
Despite short-term blip, pharma major remains favourite among investors
Mirae Asset MF's AUM crosses ₹2 trn mark
Mirae Asset Investment Managers (India) on Friday announced that its mutual fund (MF) assets under management (AUM) has crossed the ₹2 trillion mark on the back of 54 per cent compound annual growth rate (CAGR) in the past five years.
PIL in HC seeks action against Amfi for 'misleading' ads
A public interest litigation (PIL) has been filed in the Bombay High Court seeking directions to Securities and Exchange Board of India (Sebi) to revoke the permissions granted to mutual fund body Association of Mutual Funds in India (Amfi) for \"misleading\" and \"deceptive\" advertisement campaigns under the investor education and protection measures.
IPO frenzy: Six issues fully subscribed; IGI at 13% premium on listing day
The initial public offerings (IPOs) of DAM Capital Advisors, Sanathan Textiles, Concord Enviro Systems, Mamata Machinery and Transrail Lighting, whose issues are on their penultimate day, were subscribed between 1.24 and 37.75 times.
Debt funds to deliver best show in 4 yrs
Strong performance attributed to bond index inclusion and fiscal prudence, say experts
