The Revival of the TATA GROUP

In the last 12 months, TATA Group of companies have rallied between 50 to 100%

Tata Communication- 102%
Rallis- 105%
Tata Consumer- 96%
Tata Elxsi-76%
Tata Coffee- 53%
Tata Steel- 27%
Tata Motors- 21%
Tata Consultancy Services- 7%
Titan Company Ltd 7%

Tata Communications in Q1 FY21

Consolidates revenue grew 5.6% YoY to ₹4,403Cr
236% rise in PAT to ₹258Cr from ₹77Cr a year earlier
EBITDA at ₹1,042Cr up by 26.2% YoY. Tata Communication Network manages 11% of the World’s data traffic

Top level movement:

In Oct 2019, AS Lakshminarayanan was appointed as new CEO & MD of Tata communication from TCS
Rallis India appointed new MD & CEO, Sanjiv Lal in April 2019
In April 2020, Tata consumer products appointed new MD & CEO, Sunil D’Souza from Whirlpool and PB Balaji, Group CFO of Tata motors was brought in as Independent Director of Tata consumer products
Tata motors’ JLR named Thierry Bollore as CEO who was set to join on 10^th Sept 2020

Tata consumer since March 31^st has raised the total Mcap to a record high of ₹506 billion as of September 7 taking it to 3^rd position amongst most valued listed tata companies

TCS at a pole position with Mcap of ₹8.72 Trillion, followed by Titan with Mcap of ₹1.03 trillion
At 4^th stands Tata motors with ₹493.61 billion and at 5^th Tata steel with ₹479.84 billion

Calendar 2021 may see the Tatas create a lot of wealth, which has been the missing link in last few years, all thanks to Tata Sons Chairman N Chandrasekaran vision and demarcating of companies,” said Sanjiv Bhasin, Director of IIFL Securities

Tata Motors:

In the recent AGM, N Chandrasekaran expects Tata motors to be debt free in next 3 years
PB Balaji in the same AGM said, JLR to be free Cash flow positive from Q2FY21
Tata motors reported a 13.38% increase in total sales at 36,472 units in August 2020 against 32,166 in the same period last year
Commercial vehicle sales reported a 28% decline in August 2020 to 17,889 units against 24,850 in the year-ago period

Tata Power:

Expects to be large solar power player by 2025 in India
Tata power won a contract worth ₹490Cr defence order for all-weather rocket system
Tata power also plans to launch its renewable energy InvIT in FY20-21
June quarter ended on a good note with ₹91.23Cr profit with YoY loss of ₹9.90Cr

Tata powers in FY25

Vision to deleverage balance sheet
Double the revenues
Triple the profits
Improve ROE by 12%

Tata Elxsi Q1 FY21

Net Profit rose by 41.1% to ₹68.87Cr from ₹48.79Cr in the year-ago period
Revenue from operations increased by 10.7% to ₹400.48Cr
Growth was driven by Embedded Product design (EPD), its largest division. Within EPD, Media and communication grew by 23.3% YoY and healthcare grew by 26.5% YoY
Software development and services generated ₹390,42Cr whereas system integration and support services generated ₹10.06Cr

What according to you could be one of the main reasons of rallying of Tata group?

Poojan Sheth

Pharma graduate from NMIMS University, with a work-ex of 5 years and thriving in the Pharmaceutical International Sales sector.
A sucker for sports and a true Red Devil ( If you know, you know )

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