Tata Motors expects to return to the list of dividend-paying companies soon. The company has not paid dividends to its stakeholders for the last five years.
The chairman of Tata Motors, N Chandrasekaran responded to the stakeholders’ questions on the dividends payouts and told them that it is difficult for the company to pay the dividend to the stakeholders for now because of the accumulated losses of Rs. 1500 crores. So, the company first has to recover the losses to be in the situation of paying dividends. He said that the concerned officials are working hard to become a dividend-paying company soon.
May 2016 was the last time when Tata Motors declared a dividend. Apart from Tata Motors, its UK arm Jaguar Land Rover is also working hard to become dividend-paying to the parent company.
In the 77th annual general meeting of Tata Motors held on Monday, the Chairman said that they are expecting the second half of this fiscal to be better than the first half for Jaguar Land Rover.
Despite the outer challenges such as inflation and geopolitical issues, demands for the products of both companies which are passenger and commercial vehicles in India and UK JLR remained the same.
He further added that the management and concerned officials are taking appropriate action to create an appreciative cycle of growth and returns to the shareholders. He also replied to the question about the company’s plans to get into the business of electric two-wheelers and tractors. He said that the company has no interest in electric scooters but it will offer charging solutions for them. Also on tractor manufacturing, he said that the company is deliberate in that
