MUMBAI: Tata Sons - the main holding company of the salt-to-telecom conglomerate, the Tata Group - reported anet profit of Rs 3246 crore in 2010-11, double of what it reported 2009-10 when it earned a profit of Rs 1,621 crore according to sources familiar with the results. The company's reporting profit also shot up to Rs 4851 crore as against Rs 2970 crore.
Dividend income fromTata Consultancy Services (TCS) is the main reason for the rise in profit. 'TCS contributes over 70% revenues in the form of dividend to Tata Sons Ltd. So the increase in dividend was the main reason' said the source. A special dividend announced by TCS in 2009-10 also could be completed and was only transferred in 2010-11 to Tata Sons.
Tata Sons also holds equity stake in major Tata companies such asTata Steel,Tata Motors,Tata Power,Tata Chemicals,Tata Industries,Tata Teleservices,Tata Investment Corporation and Tata Petrodyne.
In 2006-07, the company posted a net profit of Rs 3,336 crore on a total income of Rs 4,107 crore. In the next year, 2007-08, net profit slightly rose to Rs 3,780 crore as income grew to Rs 4,871 crore, according to CMIE data.
Tata sons' profits double in fy'11; net profit at rs 3246 cr
CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
25 July 2011
CAclubindia
