Tata Group chairman N Chandrasekaran said in the group's FY25 annual report that the group has been on a "transformational journey" towards financial and strategic fitness over the past five years. He cited significant growth in the group's aggregate toplines and profit, and improvement in the leverage ratios.
"During the last five years, Tata Group aggregate revenues rose 1.9x, aggregate net profits rose 3.6x and leverage ratio halved to 0.7x. Return on equity now stands at 17.5 percent, up from 8.7 percent in FY20" Chandrasekaran said in the annual report.
As an example of the group's improving financial health, he cited Tata Motors, which had low levels of market share in passenger vehicles in 2017- around 5 percent- and debt of upto Rs 62,000 crore. Chandrasekaran noted that the firm was able to launch its first electric vehicle in under one year from design to production, and was also able to become a net cash positive company.
Chandrasekaran cited major investments made by the Group, through the holding company Tata Sons, towards various companies in the conglomerate. Over a five year period, he said that Tata Sons has invested around Rs 1 lakh crore into various group businesses, which in turn carried out capital expenditure and investments worth around Rs 4.5 lakh crore.
Chairman's compensation up
In its statutory report, Tata Sons said that Chandrasekaran's total remuneration for FY25, is expected to be Rs 155.21 crore. This includes a salary and related compensation of Rs 15.12 crore, while the commission is slated to be Rs 140.69 crore. The commission will be paid to Chandrasekaran after the firm's annual general meeting.
Both the salary and commission figures for Chandrasekaran were higher in FY25 than the year prior. In FY24, Chandrasekaran, as chairman of Tata Sons, was paid a total remuneration of Rs 135.32 crore. This included a salary of Rs 13.82 crore, and commission of Rs 121.50 crore.
Others on the Tata Sons board with significant remuneration includes chief financial officer Saurabh Agrawal, who earned Rs 32.68 crore in total for FY25. It included a salary and related compensation of Rs 6.68 crore, and commission of Rs 26 crore. In FY24, Agrawal's total remuneration stood at Rs 30.35 crore, including a salary of Rs 6.35 crore, and commission of Rs 24 crore.
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