Over- dependence on TCS

TATA SONS, the holding company of Tata Group, is reportedly gearing up to pay a major chunk of the

` 10,000 crore dues of Tata Teleservices ( TTSL) to the government. The holding company had earlier written off its investment of ` 28,652 crore in TTSL and compensated about

` 8,000 crore to Japanese partner DoCoMo for the losses it incurred. The telecom misadventure has cost Tata Sons heavily and profit declined to ` 4,379 crore in the last fiscal from ` 18,432 crore before that. Although Tata Sons is the parent of more than 100 group companies, 90 per cent of its dividend income comes from TCS – a sign of over- dependence. Tata Sons, which made a windfall gain of

` 10,000 crore in the TCS buyback in FY18, is also looking to sell more shares worth ` 11,500 crore in the second round of TCS buyback.