Tata Capital Q1FY25 Financial Results

Document Summary

The document is a notification to the Listing Department of the BSE Limited and the National Stock Exchange of India Ltd. regarding the outcome of a Board Meeting of Tata Capital Limited held on August 6, 2024. The primary agenda of the meeting was the approval of the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2024.

Financial Results and Audit Reports: The board approved the Unaudited Financial Results. These results are accompanied by a Limited Review Report from M/s. MSKA & Associates and M/s. M P Chitale & Co., Chartered Accountants, who served as Joint Statutory Auditors. A Security Cover Certificate, as per Regulation 54 of the SEBI Listing Regulations, is also attached to the Unaudited Financial Results. A statement concerning the utilization of issue proceeds of Non-Convertible Debentures, along with a statement indicating Nil deviation and variation, is also provided, fulfilling the requirements of Regulations 52(7) and 52(7A) of the SEBI Listing Regulations. MSKA & Associates and M.P. Chitale & Co conducted a review of the unaudited standalone financial results of Tata Capital Limited for the quarter ended June 30, 2024, in compliance with Regulation 52 of the SEBI Listing Regulations, 2015, as amended. The review was conducted according to the Standard on Review Engagements (SRE) 2410 issued by the Institute of Chartered Accountants of India. The auditors stated that nothing came to their attention that would cause them to believe that the Statement was not prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 and other recognised accounting principles generally accepted in India, or that it contained any material misstatement.

Merger Scheme: Note 7 to the Statement indicates that the figures for the quarter ended June 30, 2023, have been restated/regrouped to account for the Scheme of Arrangement for the merger of Tata Capital Financial Services Limited (TCFSL) and Tata Cleantech Capital Limited (TCCL) with the Company, effective from April 1, 2023. These restated/regrouped figures were derived from the respective unaudited standalone financial results of TCL, TCFSL, and TCCL, which were reviewed by their respective auditors. The Board of Directors approved a Scheme of Arrangement for the amalgamation of Tata Motors Finance Limited (TMFL) with and into TCL. The scheme will be effective upon fulfilling all conditions, including approvals from the Reserve Bank of India and the National Company Law Tribunal (NCLT). Upon the scheme becoming effective, the entire business of TMFL will be transferred to TCL. Equity shares of TCL will be issued to equity shareholders of TMFL as per the share exchange ratio. Holders of Non-Convertible Debentures (NCDs) of TMFL will become holders of NCDs of TCL on the same terms.

Financial Performance (Standalone): For the quarter ended June 30, 2024, Tata Capital Limited reported a total revenue from operations of ₹4,250.63 crore (compared to ₹3,876.57 crore for the quarter ended June 30, 2023), and a profit for the period of ₹912.25 crore (compared to ₹776.92 crore for the quarter ended June 30, 2023). Key financial ratios as of June 30, 2024, include a debt-equity ratio of 4.89, and gross and net non-performing assets of 1.81% and 0.44% respectively.

Financial Performance (Consolidated): For the quarter ended June 30, 2024, Tata Capital Limited (consolidated) reported a total revenue from operations of ₹5,372.07 crore and a profit for the period of ₹870.77 crore. The earnings per equity share (par value ₹10) are ₹2.30. Key financial ratios as of June 30, 2024, include a debt-equity ratio of 6.25.

Segment Reporting: In accordance with Ind AS 108 on Segment Reporting, the Company has identified three business segments: Financing Activity, Investment Activity, and Others.

Loan Transfers/Acquisitions: Details of loans transferred/acquired during the quarter ended June 30, 2024, under the RBI Master Direction on Transfer of Loan Exposures dated September 24, 2021, are provided. Loans not in default were transferred entirely through assignment/novation. The aggregate amount of loan transferred was Rs 432.50 crore, with a weighted average residual maturity of 125 months.

Additional Disclosures: The funds raised through the issue of Non-Convertible Debt Securities have been used for various activities, including lending and investments, repaying existing loans, and business operations. There was no deviation in the use of the proceeds of the issue of Non-Convertible Debt Securities.

Subsidiaries and Associates: The consolidated financial results include the results of the Holding Company (Tata Capital Limited) and its subsidiaries, as well as its share of the net profit/loss of its associates. A list of the subsidiaries and associates is provided, along with their relationship with the Holding Company.

Auditor's Conclusion (Consolidated): Based on the review and the reports of other auditors, nothing came to their attention that would cause them to believe that the consolidated financial results were not prepared in accordance with the relevant accounting standards and regulations.