The Tata Group has achieved a historic milestone by surpassing a market capitalization of ₹30 lakh crore, making it the first Indian conglomerate to do so. This remarkable increase in market value is attributed to strong performances by Tata Consultancy Services (TCS), Tata Motors, Tata Power, and Indian Hotels in 2024.
TCS leads the way with ₹15 lakh crore market cap
TCS, which contributes over half of Tata Group mcap, surged 9% in 2024, crossing the ₹15 lakh crore market cap due to successful deals in Q3FY24. The company recently expanded its partnership with UK insurance leader Aviva, potentially exceeding $500 million. TCS also secured a new deal from global travel insurance firm Europ Assistance to transform its IT operating model using artificial intelligence and machine learning.
Tata Motors witnesses surge driven by strong earnings and demand
Tata Motors witnessed a surge driven by strong earnings, eased semiconductor chip shortages, and robust demand. Their Jaguar Land Rover (JLR) division posted an impressive 16.2% EBITDA margin. The domestic business also performed well, with a 19% revenue growth. Tata Motors also benefited from the launch of its new electric vehicle (EV) models such as Nexon EV and Altroz EV.
Tata Power’s growth aligns with the energy sector’s trend
Tata Power’s growth aligns with the energy sector’s trend, focusing on renewable energy expansion. Tata Power is a major private sector player with a substantial clean energy portfolio of 5,500 MW. The company also announced its plans to invest ₹22,000 crore in renewable energy projects over the next five years.
Indian Hotels delivers strong results due to high demand
Indian Hotels delivered strong results due to high demand, and the management’s optimistic outlook suggests a promising earnings trajectory. The company reported a net profit of ₹208 crore in Q3FY24, compared to a net loss of ₹118 crore in Q3FY23. The revenue from operations increased by 42% year-on-year to ₹1,224 crore. The company also added 14 new hotels to its portfolio in 2024.
Despite some challenges, the Tata Group’s market capitalization milestone reflects the conglomerate’s resilience and strong performance in various sectors.
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