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MUMBAI: Tata Motors hopes to return to the list of dividend paying companies soon. The Tata Group flagship has not paid dividends to its shareholders in the last five years.
Responding to shareholders’ queries regarding the dividend payment plan, the Chairman N Chandrasekaran said the situation had become difficult due to accumulated losses – to the tune of Rs 1,500 crore. Until the company deletes this, it will be difficult. This is the loss that the company must at least recoup to be able 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. Apart from Tata Motors, its UK arm Jaguar Land Rover (JLR) is also “working hard to pay a dividend” to the parent company. “We expect the second half (of this fiscal) to be better than the first half for JLR.” Despite external challenges such as geopolitical and inflation concerns, demand for products in each of the company’s businesses — passenger and commercial vehicles in India and JLR UK – remains strong, the chairman said at Tata Motors’ 77th Annual General Meeting on Monday.
Management is taking action to create a favorable cycle of growth and returns for shareholders, he added. When asked if the company has plans to enter electric two-wheelers and tractors, Chandrasekaran replied, “The company has no interest in electric scooters, but will offer charging solutions.” As for tractor production, Chandrasekaran said, “We will discuss that.”
Responding to shareholders’ queries regarding the dividend payment plan, the Chairman N Chandrasekaran said the situation had become difficult due to accumulated losses – to the tune of Rs 1,500 crore. Until the company deletes this, it will be difficult. This is the loss that the company must at least recoup to be able 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. Apart from Tata Motors, its UK arm Jaguar Land Rover (JLR) is also “working hard to pay a dividend” to the parent company. “We expect the second half (of this fiscal) to be better than the first half for JLR.” Despite external challenges such as geopolitical and inflation concerns, demand for products in each of the company’s businesses — passenger and commercial vehicles in India and JLR UK – remains strong, the chairman said at Tata Motors’ 77th Annual General Meeting on Monday.
Management is taking action to create a favorable cycle of growth and returns for shareholders, he added. When asked if the company has plans to enter electric two-wheelers and tractors, Chandrasekaran replied, “The company has no interest in electric scooters, but will offer charging solutions.” As for tractor production, Chandrasekaran said, “We will discuss that.”
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