MUMBAI:
Tata Motors
hopes to return to the list of dividend-paying companies soon. The flagship of the
Tata Group
has not paid dividends to its shareholders for the last five years.
Responding to shareholders’ queries on the company’s plan for dividend payouts, chairman
N Chandrasekaran
said the situation has become difficult because of accumulated losses — to the extent of Rs 1,500 crore.
Until the company wipes that out, it will be difficult. This is the loss which the company has to at least recover to be in a situation to pay dividends, he explained. “We are working to become a dividend-paying company soon.”
The last time the company declared a dividend was in May 2016. Besides Tata Motors, its UK arm Jaguar Land Rover (JLR) too is “working hard to pay dividend” to the parent. “We are expecting the second half (of this fiscal) to be better than the first half for JLR.” Despite external challenges like the ongoing geopolitical and inflation concerns, demand for products in each of the company’s businesses — passenger and commercial vehicles in India and JLR UK — remain strong, the chairman said at Tata Motors’s 77th annual general meeting on Monday.
The management is “rigorously working towards making all three verticals (passenger and commercial vehicles units in India and JLR UK) to be EBIT+, PBT+ and cash flow +”. They are taking actions to create a virtuous cycle of growth and returns for its shareholders, he added. On shareholders’ questions whether the company has plans to get into adjacent areas like electric two-wheelers and tractor manufacturing,
Chandrasekaran
replied, “The company has no interest in electric scooters but it will offer charging solutions for different segments.” On tractor manufacturing, Chandrasekaran said, “We will deliberate on this.”
