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Tata Sons, an executive of Chandrasekaran N, wrote off Rp 28,651 million in the telecommunications sector last year, which resulted in a 76% drop in net profit, The Economic Times reported. The group's fund managers told the paper that Chandrasekaran must now generate growth and profit.
Tata Sons' attention in the coming fiscal year will be focused on growth and cash flow will stay ahead of capital spending, said a senior official. The group began taking measures such as selling its Tata Teleservices mobile phone business to Bharti Airtel, which was struggling due to competition.
A source told the newspaper that write-offs from the balance sheet of its telecom branch would be completed. by March, more capital infusions to strengthen activities will be undertaken this year.
The conglomerate recorded a 14% increase in revenue year-over-year in March. Profit after tax was reduced to Rs 4,379 billion, the company said in documents filed with the Registrar of Companies.
The group tried to consolidate its stake in Tata companies in order to simplify its cross-holdings and raise funds for entities wanting to reduce their investments.
Chandrasekaran has pushed more than 100 Tata companies to focus on core business and markets in India. Sources told the newspaper that the companies in the group were already reducing their activities in small businesses and their subsidiaries.
"Many young companies in the insurance, steel, hospitality and retail sectors will contribute in a few years. The president is making strategic decisions for the future, "sources added.
The cumulative business of Tata Sons exceeds $ 100 billion, but the group derives a significant share of the dividends from its largest company, Tata Consultancy Services (TCS). consolidated business figure of $ 19 billion in March.
Tata Trusts and the group companies hold approximately 79% of the capital of Tata Sons, with the balance held by individual investors, including the Tata family.
Tata Sounds asked its shareholders to approve change its status from a public company to a private company. Its autonomous turnover includes dividends from group companies and subscriptions of brand equity. The consolidated profit depends on the performance of 218 subsidiaries, 34 joint ventures or badociated companies and the return on equity investments, the documents said. It recently approved a plan to invest Rs. 10 161 billion in the group's finance, insurance, defense, real estate and retail businesses.
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