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Tata Sons may post Rs 11-billion net profit

BS Research Bureau

Tata Sons, the principal holding company of the Tata group, is likely to post a net profit of Rs 11 billion for the year ended March 2002. Revenue from operations would be around Rs 42 billion.

The Tatas have provided detailed information about the unlisted Tata Sons in their letter of offer to shareholders of Videsh Sanchar Nigam, released on Wednesday.

Sales and profits for 2001-02 have been worked out by annualising the company's published performance for the nine months ended December 2001.

During this period, Tata Sons posted revenues of Rs 31.46 billion and a net profit of Rs 8.30 billion.

Incidentally, Tata Sons' business in this nine-month period equals its performance in the whole of the financial year ended March 2001, when the company posted revenues of Rs 31.92 billion and a net profit of Rs 7.14 billion.

Tata Sons' robust performance in the nine months ended December 2001 indicates the firm's revenues will grow 31.4 per cent and net profit end 55.1 per cent higher at the end of the year.

Since 95 per cent of Tata Sons' revenues and net profits come from Tata Consultancy Services, it is fair to conclude that the latter is likely to outperform India's largest listed software companies, Wipro and Infosys Technologies, during 2001-2002.

On the basis of annualised sales and profit, Wipro's sales are estimated to grow by around 10 per cent and its net profit by 29 per cent. Infosys' sales are estimated to rise 35 per cent and net profit 27.8 per cent.

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