Tata Capital Limited (“Company” or “TCL”), is the flagship financial services company of the Tata Group, primarily holds investments in its subsidiaries which are mainly engaged in the lending and offering a wide array of services/products in the financial services sector. Tata Capital Limited is a subsidiary of Tata Sons Private Limited and is registered with the Reserve Bank of India (“RBI”) as a Systemically Important Non-Deposit Accepting Core Investment Company (“CIC”). Besides being a holding company, TCL carries out only such activities as are permitted under the Directions issued by the RBI for CICs, as amended from time to time.
Tata Capital’s consolidated book size increased to ` 94,349 crores as of March 31, 2022, from ` 77,220 crores as of March 31, 2021. During FY 2021-22, Tata Capital recorded a consolidated Total Income of ` 10,253 crores as against ` 9,988 crores in FY 2020-21, an increase of about 3%. The Total Income comprised Income from financing activities of ` 9,227 crore (FY 2020-21: ` 8,879 crore), Investment Income of ` 630 crore (FY 2020-21: ` 601 crore) and Other Income of ` 396 crore (FY 2020-21: ` 508 crore). The consolidated interest expense for the year was ` 4,889 crore (FY 2020-21: ` 5,213 crores), a decrease of 6% which was primarily on account of the lower cost of funds. The Consolidated Net Interest Margin and Other Income for the year was ` 5,364 crore (FY 2020-21: ` 4,775 crores), an increase of 12% which was primarily on account of lower cost of funds and higher other income. Impairment on Investments and Financial Instruments decreased to ` 1,083 crores in FY 2021-22 compared to ` 1,450 crores in FY 2020-21. The consolidated Gross Non-Performing Assets (“GNPA”) showed a decrease from 2.5% in FY 2020-21 to 1.9% in FY 2021-22. The Net Non-Performing Assets (“NNPA”) also decreased from 0.9% in FY 2020-21 to 0.6% in FY 2021-22. Provision Coverage Ratio (“PCR”) stood at 71% (FY 2020-21: 65%) The Operating Expenses (including Employee costs, Depreciation, and other expenses) increased by 20% as compared to FY 2020-21. During the year, Tata Capital’s Profit After Tax attributable to owners of the Company on a consolidated basis increased by about 46%, to ` 1,648 crores (FY 2020-21: ` 1,126 crores). The consolidated Return on Assets (“ROA”) for FY 2021-22 was 2.0% (FY 2020-21: 1.5%) while the Return on Equity (“RoE”) was 15.6% (FY 2020-21: 12.2%).
During FY 2021-22, TCL recorded a Gross Income of Rs 511.89 crore (FY 2020-21: ` 452.17 crores) Profit after Tax during the year was ` 83.10 crore (FY 2020-21: ` 46.67 crores). The Company has transferred an amount of ` 16.99 crores to the Special Reserve Account. The closing balance of the retained earnings of the Company for FY 2021-22, after all, appropriation and adjustments, was ` 236.96 crore (As of March 31, 2021: ` 170.84 crores).
Structure of Business Operations at Tata Capital Limited:
TCL is primarily a holding company, holding investments in its subsidiaries and other group companies, the financial services sector in India, as also globally, is highly regulated. TCL and its subsidiaries are subject to regulations by authorities such as the RBI, the Securities and Exchange Board of India (“SEBI”), the National Housing Bank (“NHB”), the Monetary Authority of Singapore (“MAS”), the Financial Conduct Authority, UK, the Association of Mutual Funds of India (“AMFI”) and the Insurance Regulatory and Development Authority of India (“IRDA”). A detailed discussion on the Private Equity Funds and TCL’s subsidiaries are set out in the below paras.
1. Private Equity
1.a : Domestic Funds
1.a.1) Tata Capital Growth Fund I (“TCGF I”) and Tata Capital Growth Fund II (“TCGF II”)
1.a.2) Tata Capital Healthcare Fund I (“TCHF I”) and Tata Capital Healthcare Fund II (“TCHF II”)
1.a.3) Tata Capital Innovations Fund (“TCIF”)
1.a.4) Tata Capital Special Situations Fund (“TCSSF”)
1. b: Overseas Funds
1.b.1) Tata Capital Growth Fund Limited Partnership (“TCGFLP”)
1.b.2) Tata Capital Growth Fund II LP (“TCGFIILP”)
1.b.3) Tata Capital HBM Healthcare Fund I Limited Partnership (“TCHHFLP”)
1.b.4) Tata Capital Healthcare Fund II (Feeder) LP (“TCHFIILP”)
1.b.5) Tata Opportunities Fund Limited Partnership (“TOF”)
2. Subsidiaries: (As of March 31, 2022 )