Tata Sons’ FY19 net rises 30% to Rs 1,144 crore on TCS share buyback

Tata Sons, the holding company of the Tata group, reported a 30 per cent rise in its net profit at Rs 1,144 crore for the financial year ended March 2019 — thanks to the company selling part of its stake worth Rs 10,630 crore in the share buyback offered by its cash-rich subsidiary Tata Consultancy Services (TCS).

The huge cash gain of the company from the TCS buyback could have translated into higher profits but stood reduced because the company wrote off its investments in Tata Teleservices to the tune of Rs 14,690 crore during the year, according to the Tata Sons 2018-19 annual report.

In the previous year, Tata Sons had taken a far bigger write-off worth Rs 28,651 crore when it repaid liabilities of the loss-making telecom subsidiary to banks.