Tata Capital Annual Reports | Balance Sheet | Financials

Tata Capital Limited (Tata Capital) Return Comparision with Primex 40 Index

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Primex-40
Tata Capital Limited

TATA Capital Limited Balance Sheet (Rs in Crores)

Particulars	31-03-2024	31-03-2023
Financial Assets
Cash and cash equivalents	6,771.16	3,058.88
Bank balance other than above	224.42	257.82
Derivative financial instruments	242.62	229.58
Trade receivables	89.38	74.91
Other receivables	1.88	0.37
Loans	1,57,760.55	1,16,788.72
Investments	7,902.02	12,658.97
Other financial assets	571.15	364.12
Non-Financial Assets
Current tax assets (net)	167.31	172.08
Deferred tax assets (net)	466.50	381.07
Investments accounted using equity method	830.78	595.07
Investment property	3.02	19.87
Property, plant and equipment	832.93	486.27
Capital work-in-progress	4.15	11.30
Intangible assets under development	4.11	8.72
Other intangible assets	42.79	32.55
Right of use assets	311.59	193.93
Other non-financial assets	467.62	291.87
Total Assets	1,76,693.98	1,35,626.10
Financial Liabilities
Derivative financial instruments	46.33	62.32
Trade payables
Total outstanding dues of micro enterprises and small enterprises	3.82	7.03
Total outstanding dues of creditors other than micro enterprises and small enterprises	1,403.39	1,232.16
Debt securities	60,503.68	51,375.58
Borrowings (Other than debt securities)	79,142.88	54,934.13
Subordinated liabilities	8,538.73	7,026.20
Lease liabilites	326.53	205.38
Other financial liabilities	1,378.02	1,986.77
Non-Financial Liabilities
Current tax liabilities (net)	396.73	337.98
Provisions	106.83	99.46
Other non-financial liabilities	264.93	210.42
Equity
Equity share capital	3,703.05	3,507.07
Shares pending for issuance	-	71.65
Other equity	19,714.08	13,761.14
Non-controlling interest	1,164.98	808.81
Total Liabilities and Equity	1,76,693.98	1,35,626.10

TATA Capital Limited Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2024	31-03-2023
Revenue from operations
Interest income	16,366.47	11,910.90
Dividend income	36.19	0.79
Rental income	203.41	269.26
Fee and commission income	1,045.88	569.58
Net gain on fair value changes	490.03	63.74
Net gain on de-recognition of associates	32.84	814.58
Other income	23.56	8.64
Total income	18,198.38	13,637.49
Expenses
Finance costs	9,568.23	6,600.64
Impairment on investment in associates	10.09	7.65
Impairment on financial instruments	592.26	574.29
Employee benefits expense	1,850.09	1,294.18
Depreciation, amortization and impairment	287.50	226.02
Other expenses	1,486.61	1,144.85
Total expenses	13,794.78	9,847.63
Profit from continuing operations before exceptional items, share of net profits of investments accounted for using equity method and tax	4,403.60	3,789.86
Share in profit of associates	-11.57	146.70
Profit before tax from continuing operations	4,392.03	3,936.56
Current tax	1,071.76	1,070.39
Deferred tax	-6.69	-79.60
Short / (Excess) of earlier years	1,065.07	990.77
Profit for the year from continuing operations	3,326.96	2,945.77
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Owners of the Company
Re-measurement of defined employee benefit plans	-2.72	-12.44
Tax relating to Re-measurement of defined employee benefit plans	0.67	3.17
Changes in fair values of investment in equities carried at Fair Value Through Other Comprehensive Income (FVTOCI)	1,121.04	2,229.95
Tax on Changes in fair values of investment in equities carried at FVTOCI	-148.04	-532.62
Non-controlling interest
Changes in fair values of investment in equities carried at FVTOCI	192.29	55.64
Items that will be reclassified to profit or loss
Owners of the Company
Debt instruments measured through FVTOCI	22.25	-12.12
Income tax on Debt instruments through FVTOCI	-3.78	2.11
Fair value loss on financial assets carried at FVTOCI	14.99	-4.17
Income tax relating to fair value gain on financial asset measured through FVTOCI	-3.77	1.01
The effective portion of gain on hedging instruments in a cash flow hedge	-80.70	40.82
Income tax relating to the effective portion of gain on hedging instruments in a cash flow hedge	20.31	-10.72
Share of other comprehensive income in associates (net)	-0.18	8.58
Exchange differences in translating financial statements of foreign operations	8.03	47.63
Non-controlling interest
Fair value loss on financial asset measured through FVTOCI	0.11	-0.09
Total Comprehensive Income for the year	4,467.46	4,745.81
Profit for the year attributable to:
Owners of the company	3,150.21	3,029.20
Non-controlling interest	176.75	-83.43
Other comprehensive income for the year attributable to:
Owners of the company	948.10	1,744.49
Non-controlling interest	192.40	55.55
Total comprehensive income for the year attributable to:
Owners of the company	4,098.31	4,773.69
Non-controlling interest	369.15	-27.88
Earnings per equity share (Face value: Rs10 per share)
Basic	8.57	8.44
Diluted	8.57	8.44

TATA Capital Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit before tax	4,392.03	3,936.56
Adjustments for :
Depreciation, amortization, and impairment	287.50	226.02
Net loss / (gain) on de-recognition of property, plant and equipment, and right-to-use assets	-16.31	3.21
Interest expenses	9,568.23	6,600.64
Interest income	-16,366.47	-11,910.90
Dividend income	-36.19	-0.79
Provision for leave encashment	7.68	5.12
Exchange gains (net)	-1.08	-2.82
Net loss/(gain) on fair value changes	-490.03	-63.74
Net loss/(gain) on derecognition of investment in associates	-32.84	-814.58
Rental income on fair valuation of security deposit	-7.67	-39.07
Share in profit of associates	11.57	-146.70
Share based payments to employees	34.17	21.48
Interest on income tax refund	-2.79	-2.08
Impairment/derecognition on investment in associates	10.09	7.65
Impairment on financial instruments	592.26	574.29
Reversal of provisions against assets held for sale	-12.70	-
Interest paid	-8,913.35	-5,904.64
Interest received	15,694.83	11,422.15
Interest received on income tax refund	2.79	2.08
Dividend received	36.19	20.11
Cash generated from operation before working capital changes	4,757.91	3,933.99
Movement in working capital:
(Increase) / decrease in loans	-40,889.14	-26,786.81
Increase in trade receivables	-53.09	-58.59
Decrease / (Increase) in other financial / non financial assets	-189.19	-157.24
Increase / (decrease) in other financial / non financial liabilities	-569.17	758.32
Increase / (decrease) in provisions	-1.02	-13.27
Increase in trade payable	168.69	217.76
Taxes paid (net)	-1,223.53	-1,083.76
Net Cash used in Operating Activities	-37,998.54	-23,189.60
Cash Flow from Investing Activities
Purchase of property, plant and equipment (including capital advances)	-697.93	-207.99
Proceeds from sale of property, plant and equipment	64.40	60.49
Investment in associates	-375.51	-151.46
Purchase of mutual fund units	-5,21,842.11	-3,72,050.94
Purchase of other investments	-3,250.02	-8,720.99
Proceeds from redemption of mutual fund units	5,26,521.31	3,70,680.01
Proceeds from sale of associates	173.56	1,008.46
Proceeds from sale of other investments	5,128.39	7,308.84
Bank Balances not considered as cash and cash equivalents	35.12	-195.99
Net Cash used in Investing Activities	5,757.21	-2,269.57
Cash Flow from Financing Activities
Proceeds from issue of Equity Shares	1,975.50	593.79
Infusion of capital by minority shareholders	282.37	203.16
Payout of income/gain to contributors	-268.80	-182.75
Repayment of lease obligation	-77.62	-41.04
Redemption of preference shares	-	-40.20
Share and debt issue expenses	-51.77	-42.11
Dividend paid on equity & preference shares	-73.66	-136.11
Proceeds from debt Securities	41,502.67	36,664.50
Proceeds from borrowings (other than debt securities)	62,935.74	45,828.43
Proceeds from subordinated liabilities	1,787.14	129.00
Repayment of debt securities	-32,709.77	-26,347.61
Repayment of borrowings (other than debt securities)	-38,945.32	-30,120.18
Repayment of subordinated liabilities	-404.06	-79.31
Net Cash used in Financing Activities	35,952.42	26,429.57
Net Increase in cash and cash equivalents	3,711.09	970.40
Cash and cash equivalents as at the beginning of the year	3,058.88	2,081.62
Exchange difference on translation of foreign currency cash and cash equivalents	1.19	6.86
Cash and cash equivalents as at the end of the year	6,771.16	3,058.88

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

For the year ending March 31, 2024, the cash flow from operating activities reveals significant shifts compared to the previous year. The company’s profit before tax increased to ₹4,392.03 crore from ₹3,936.56 crore in the prior year, indicating stronger profitability. However, several adjustments were necessary to reconcile this figure with the cash flow from operations. Depreciation, amortization, and impairment expenses rose to ₹287.50 crore from ₹226.02 crore, reflecting increased asset wear and tear. The interest expenses surged to ₹9,568.23 crore, up from ₹6,600.64 crore, while interest income also climbed to ₹16,366.47 crore from ₹11,910.90 crore, illustrating higher returns on investments.

Adjustments for non-cash items included a net loss on fair value changes and derecognition of investments, which amounted to substantial negative figures, indicating significant losses in these areas. Despite receiving substantial interest income and dividends, the company experienced a net cash outflow from operating activities of ₹37,998.54 crore, compared to ₹23,189.60 crore in the previous year. This outflow was primarily due to large increases in loans and trade receivables, coupled with a notable decrease in other financial assets and an increase in trade payables. The higher taxes paid and the movement in working capital contributed to the overall negative cash flow from operating activities.

Cash Flow from Investing Activities

In terms of investing activities, the year ending March 31, 2024, saw a net cash inflow of ₹5,757.21 crore, reversing the negative cash flow of ₹2,269.57 crore from the previous year. This change reflects a dynamic shift in investment strategy and asset management. The company spent ₹697.93 crore on purchasing property, plant, and equipment, up from ₹207.99 crore, indicating increased capital expenditure. However, significant inflows were realized from the redemption of mutual fund units, which soared to ₹5,26,521.31 crore from ₹3,70,680.01 crore. This substantial increase in mutual fund redemptions and other investment sales provided significant cash inflows. The company also received notable proceeds from the sale of associates and other investments. Overall, these inflows more than offset the outflows from purchasing mutual fund units and other investments, leading to a positive net cash flow from investing activities.

Cash Flow from Financing Activities

The cash flow from financing activities showed a positive net inflow of ₹35,952.42 crore for the year ending March 31, 2024, compared to ₹26,429.57 crore in the previous year. This increase highlights robust financing activities during the year. The company raised substantial funds through equity share issues, which amounted to ₹1,975.50 crore, up from ₹593.79 crore, and through debt securities and borrowings, which totaled ₹41,502.67 crore and ₹62,935.74 crore, respectively. The influx from subordinated liabilities also contributed positively. However, the company had significant outflows due to the repayment of debt securities, borrowings, and subordinated liabilities. Despite these repayments, the overall net cash inflow from financing activities was strong, reflecting the company’s successful capital-raising efforts and effective management of its financing obligations.

Dividend history

Particulars	2024	2023
Dividend	0.21	0.21
Retained Earnings (In Rs. Crores)	9,555.94	5,956.68

Dividend

2024: ₹0.21 per share

2023: ₹0.21 per share

The dividend paid per share has remained unchanged at ₹0.21 in both 2024 and 2023. This consistency indicates that the company has maintained its dividend policy despite any changes in its financial performance or other operational factors.

Retained Earnings

2024: ₹9,555.94 crore

2023: ₹5,956.68 crore

Retained earnings have increased significantly from ₹5,956.68 crore in 2023 to ₹9,555.94 crore in 2024. This substantial rise indicates that the company has retained a larger portion of its profits, which could be due to higher net income or strategic decisions to reinvest in the business rather than distribute a larger portion of earnings as dividends. This growth in retained earnings reflects a stronger financial position and potentially a focus on expansion or strengthening financial reserves.