Good news for Noel Tata as Tata Sons to receive Rs 327220000000 from…, will utilise huge amount for…

Tata Sons, the holding company of the Tata Group, will receive a record-breaking Rs 32,722 crore dividend from Tata Consultancy Services (TCS) for the financial year 2024-25. This is the largest dividend payout the company has ever received in a single year. The company will utilise the funds for Tata Group’s other business like semiconductors, electronics manufacturing, and aviation.

Investments In Semiconductors And Aviation

The Tata Group’s Rs 91,000 crore semiconductor fabrication project in Dholera is going on and is expected to be completed by December 2026. Additionally, the group is developing a Rs 27,000 crore Semiconductor ATMP (Assembly, Testing, Marking, and Packaging) plant in Assam, expected to be operational by March 2026.

Investments In Tata Capital 

In March 2025, Tata Sons invested Rs 1,500 crore into Tata Capital, which is preparing for an IPO, and Rs 1,432 crore into Tata Projects. In the previous financial year, 2023-24, Tata Sons utilized its dividend from TCS to clear all outstanding debt and made the company entirely debt-free. As of March 2023, the company had a debt of Rs 20,642 crore. By March 2024, it achieved a cash surplus position with Rs 2,680 crore in reserves.

Outlook By Rating Agencies

According to ICRA, Tata Sons had a cash surplus of Rs 3,042 crore as of March 2024. ICRA is confident about Tata Sons’ financial growth due to consistent dividends and share buybacks from TCS.

Crisil has also highlighted Tata Sons’ equity investment in Air India. TCS has already paid an interim dividend of Rs 24,931 crore in the first nine months of FY 2025. Earlier Tata Sons received its highest-ever dividend of Rs 30,418 crore in FY 2023 which will  surpass in FY 2025.

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