Tata Sons, the investment-holding arm of Tata group companies, has posted a 164% rise in net profit at Rs 17,171 crore for fiscal 2022, buoyant on gains from share buyback and dividends. In comparison, the firm had posted a net profit of Rs 6,512 crore in the previous financial year.
The holding company’s net profit on a consolidated basis rose to Rs 40,437.75 crore from Rs 19,379.08 crore posted during the same year-ago period, according to its annual report for FY22.
For the reporting fiscal, Tata Sons’ chairman N Chandrasekaran’s annual remuneration rose 19% to Rs 109 crore, making him one of the most highly-paid professionals in the country. Chandrasekaran was reappointed as chairman in February this year. The firm’s chief financial officer Saurabh Agarwal’s annual compensation rose 21% to Rs 26 crore.
During the reporting year, the group acquired an additional 3.16% stake in Tata Teleservices (TTSL), increasing its ownership to 98.20%. In FY21, Tata Sons had acquired a 10.60% stake in TTSL and held a 95.03% stake as of March 31, 2021.
In FY22, it acquired an additional 3.89% stake in Tata International increasing its ownership to 53.52%, compared with a 49.62% stake held as of March 31, 2021. During the previous year, the company had acquired a 1.64% stake in the firm.
In its annual report, Tata Sons said it received a request from Sir Dorabji Tata Trust and Sir Ratan Tata Trust — the two controlling shareholders of the company to amend its Articles of Association (AoA). The shareholders have asked to insert a clause: that “a person who is the chairman of either of the trusts or both will not concurrently be eligible to be the chairman of the company’s board.”
This would be put to vote at Tata Sons’ annual general meeting (AGM), convened for August 30.
Further, the management is also seeking the reappointment of Ajay Piramal and Anita George as independent directors under special business and the reappointment of Venu Srinivasan and Bhaskar Bhat as directors.