Tata Motors hopes to pay dividend soon: Chandra

Mumbai: hopes to return to the list of dividend-paying companies soon. The flagship of the Tata Group has not paid dividends to its shareholders for the last five years.

Responding to shareholders’ queries on the plan for dividend payouts, chairman N Chandrasekaran said the situation has become difficult because of accumulated losses — to the extent of Rs 1,500 crore. Until the company wipes that out, it will be difficult. This is the loss which the company has to at least recover to be in a situation 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. Besides Tata Motors, its UK arm Jaguar Land Rover (JLR) too is “working hard to pay dividend” to the parent. “We are expecting the second half (of this fiscal) to be better than the first half for JLR.” Despite external challenges like geopolitical and inflation concerns, demand for products in each of the company’s businesses — passenger and commercial vehicles in India and JLR UK — remain strong, the chairman said at Tata Motors’s 77th annual general meeting on Monday.

The management is taking actions to create a virtuous cycle of growth and returns for shareholders, he added. On questions whether the company has plans to get into electric two-wheelers and tractor, Chandrasekaran replied, “The company has no interest in electric scooters but it will offer charging solutions.” On tractor manufacturing, Chandrasekaran said, “We will deliberate on this.”