Tata Sons writes off Rs 28,651 crore on telecom

Tata Sons, holding company of the *diversified Tata conglomerate, wrote off Rs 28,651 crore* on its telecom business in the previous financial year, lowering its net profit by 76%, according to recent filings. Write-offs on the balance sheet for its bleeding telecom arm are expected to be completed by March 2019, said a person with knowledge of the conglomerate’s strategic blueprint. Other capital infusions to scale up businesses will also be done this year, the official added. On a consolidated basis, Tata Sons posted a 14% rise in total revenue to Rs 1,96,903 crore in the year ended March 2018, from Rs 1,73,178 crore in the previous year. Profit after tax declined to Rs 4,379 crore, from Rs 18,432 crore, after exceptional items worth Rs 21,216.2 crore, compared with Rs 7,352.7 crore a year ago, Tata Sons said in filings with the Registrar of Companies. On a consolidated basis, profit depends on the performance of 218 subsidiaries, 34 joint ventures or associates and yields in equity investments, according to filings. Tata Sons recently approved a plan to invest Rs 10,161 crore in the group’s finance, insurance, defence, realty and retail companies.

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