MUMBAI: Tata Motors hopes to be back on the list of dividend-paying companies soon. The flagship of the Tata Group has not paid a dividend to its shareholders for five years.
Answering Shareholder Questions on the Dividend Payment Plan, Chairman N Chandrasekaran said the situation has become difficult due to accumulated losses – amounting to Rs 1,500 crore. Until the company wipes that out, it’s going to be tough. That’s the loss the company needs to at least make up for in order 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. Along with Tata Motors, its UK arm Jaguar Land Rover (JLR) is “working hard to pay its parent company a dividend.” “We expect the second half (of this financial year) to be better for JLR than the first half.” strong, the chairman said at Tata Motors’ 77th annual general meeting on Monday.
Management is taking actions to create a virtuous cycle of growth and returns for shareholders, he added. When asked if the company has plans to move into electric two-wheelers and tractors, Chandrasekaran replied, “The company has no interest in electric scooters, but will provide charging solutions.” On tractor manufacturing, Chandrasekaran said, “We will discuss it.”
Answering Shareholder Questions on the Dividend Payment Plan, Chairman N Chandrasekaran said the situation has become difficult due to accumulated losses – amounting to Rs 1,500 crore. Until the company wipes that out, it’s going to be tough. That’s the loss the company needs to at least make up for in order 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. Along with Tata Motors, its UK arm Jaguar Land Rover (JLR) is “working hard to pay its parent company a dividend.” “We expect the second half (of this financial year) to be better for JLR than the first half.” strong, the chairman said at Tata Motors’ 77th annual general meeting on Monday.
Management is taking actions to create a virtuous cycle of growth and returns for shareholders, he added. When asked if the company has plans to move into electric two-wheelers and tractors, Chandrasekaran replied, “The company has no interest in electric scooters, but will provide charging solutions.” On tractor manufacturing, Chandrasekaran said, “We will discuss it.”
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