During the fiscal year 2023–24 (FY24), the unlisted financial services and insurance companies of the Tata group saw significant profits. According to Tata Sons' annual report for FY24, Tata Capital, the group's financial services division, earned a net profit of Rs 2,492 crore on revenues of Rs 13,309 crore.
Tata AIA General Insurance and Tata AIA Life Insurance, the two joint ventures in the insurance business, recorded net profits of Rs 685 crore and Rs 1,313.84 crore, respectively. 51 percent of the life insurance company and 74 percent of the general insurance company are directly owned by Tata Sons.
The life insurance joint venture recorded a turnover of Rs 25,691 crore for FY24, compared to the general insurance company's Rs 15,422.56 crore. Currently, the group is kicking around the notion of listing Tata Capital. This occurred after the company was asked to list by September of the following year by the Reserve Bank of India (RBI), which categorized it as an upper-layer non-banking financial company (NBFC).
Tata Capital combined its two businesses, Tata Cleantech Capital (TCCL) and Tata Capital Financial Services (TCFSL), into Tata Capital (TCL) in January of this year. The merger of TMFL with Tata Capital was approved in June of this year by the boards of Tata Motors (TML), Tata Capital, and Tata Motors Finance (TMFL).
In exchange for the merger, TCL will give its equity shares to TMFL's shareholders, giving TML an effective 4.7% ownership in the combined company. The group's real estate, airline, and new-age companies are still having financial difficulties, despite the financial services sector performing well (see chart).
According to the report, Air India recorded a net loss of Rs 4,444 crore on revenues of Rs 38,812 crore, while Tata SIA Airlines incurred a loss of Rs 581 crore. Tata SIA declared a 15,191 crore rupee turnover. Currently, the group is working to combine Tata SIA Airlines with Air India.
The company that runs the Chroma brand of retail outlets, Infinity Retail, declared a net loss of Rs 986.7 crore along with a turnover of Rs 17,833 crore. Tata Teleservices, which has cost the group a lot of money in recent years, posted a turnover of Rs 2,128 crore and a net loss of Rs 1,330 crore.
The Department of Telecom (DoT) has been the target of legal action brought by Tata Teleservices, its listed subsidiary Tata Teleservices Maharashtra, and other Indian telecom carriers, according to the article. The meaning of gross revenue and adjusted gross revenue is covered. Rs 4,197.37 crore was paid by TTML and TTSL in the 2019–20 fiscal year.
Both businesses petitioned the Supreme Court on October 17 of last year for curative measures, asking the court to reevaluate the imposition of interest, penalties, and interest on penalties. TTML and TTSL continued to record interest on AGR obligations throughout the year.
According to the study, as of March of this year, the gross liabilities of TTML and TTSL over the AGR situation were recorded at Rs 22,218 crore. In comparison, FY23 saw Rs 20,878 crore. Tata Tele recorded a Rs 1,340 crore provision for the fiscal year that concluded on March 31.
