Tata Sons' FY16 profit down 67 per cent, will take a relook at strategy says Ratan Tata

Ratan Tata said that he is going to take a relook at strategy, to drive growth. Ratan Tata recently took over as the new interim chairman of the Tata Sons after Cyrus Mistry’s ouster last week.

Tata sons recently posted a 67% drop in profit in the year to March and a 39% fall in revenue on a standalone basis. A year ago though, Tata Sons' profit rose to Rs 23,119 crore from Rs 19,180 crore.

Mistry, who was saked as the chairman by the board of Tata Sons, along with his family owns about 18.3% of Tata Sons. About 65.2% is held by Tata Trusts.

Tata Sons' standalone revenue or topline includes dividend from group companies and brand equity subscriptions. There's no difference between standalone revenue and consolidated. It's only the profit that is different. On a consolidated basis, Tata Sons' profit depends on the performance of 223 subsidiaries and 41 joint ventures and the yield on equity investments.

For example, the contribution of Tata Motors in FY16 was Rs 2,581 crores as compared to the loss of Rs4,738 crore in FY15. “Ratan Tata, the interim chairman has told company bosses they shouldn't be distracted by recent developments and concentrate on improving performances,” a group spokesperson told ET.

Ratan Tata also asked the leadership of the companies to focus on profitability and not about the recent change in leadership.

"The interim chairman, Ratan Tata, has already exhorted leadership of the companies to focus on their respective businesses, without being concerned about change in leadership,” the spokesperson said.