Tata Trusts to earn Rs 267 cr as dividend income from Tata Sons in FY22

Tata Trusts will earn Rs 267 crore as dividend income from Tata Sons for 2021-22 (FY22). About 66 per cent of the group’s equity capital is with the trusts owned by the Tata family.

Tata Sons, the unlisted holding company of Tata Group of companies, has announced a dividend of Rs 10,000 per share at the rate of 1,000 per cent.

Once approved by its shareholders on August 30, the dividend will lead to a total outflow of Rs 404 crore for FY22. The Mistry family will earn Rs 75 crore as dividend income on its 18.5 per cent stake in the company.

The dividend from Tata Sons is the main source of income for Tata Trusts which will use the proceeds towards health care, environment, education, and skill development.

Tata Sons had also committed Rs 1,000 crore towards tackling Covid in 2020-21 (FY21). As on May 24, the overall expense run-up towards this was Rs 755.58 crore, including expense of Rs 155.07 crore incurred in FY22, Tata Sons said in its annual report for the financial year ended March 2022.

The annual report also gives details of compensation paid to directors.

Ajay Piramal, chairman of Piramal Group, earned a commission of Rs 2.25 crore in FY21, while former Titan Company managing director Bhaskar Bhat earned a similar amount as commission on profits.

Venu Srinivasan, vice-chairman of Tata Trusts, did not receive any payout from Tata Sons - he had recused from receiving compensation from the company.

Independent director Harish Mawani received a commission on profit of Rs 2.6 crore, while non-executive director Ralf Speth took home a commission of a similar sum.

N Chandrasekaran, executive chairman of the company, received a compensation of Rs 109 crore for FY22.

For FY22, the company announced a net profit of Rs 17,171 crore on a total revenue of Rs 24,132 crore on a standalone basis, thanks to generous dividend payments from its subsidiary, Tata Consultancy Services.

Unlike previous years, when Tata Teleservices drained Tata Sons’ cash flow, FY22 was much better.