Tata Motors Seeks 20 Per Cent Dividend From Jaguar Land Rover In FY 2018

Tata Motors has recently updated the dividend model for its premium car brand Jaguar Land Rover during the 2018 financial year. As per the new payout plan, the Tata-owned British carmaker will now have to pay 20 per cent divided from its profits to the parent company Tata Motors. Earlier the company used to take a fixed sum of GBP 150 million (Rs. 1369 crore) from JLR, whereas now in FY 2018, the latter paid Tata Motors a sum of GBP 225 million (Rs. 2,054 crore), which is almost double of what JLR used to pay. Furthermore, this 20 per cent dividend will increase to 25 per cent in the 2018-19 financial year.

Tata Motors acquired Jaguar Land Rover over 10-years-ago and last fiscal year, and earlier in January 2018, the carmaker complete a decade under the ownership of Tata Motors. Right now, Jaguar Land Rover is one of the most profitable businesses under Tata Motors, and the company accounts for a considerable bulk of the home-grown carmaker's total revenue. Tata Motors' new revenue from operations for the 2017-18 financial year was Rs. 58,457 crore.

As for Jaguar Land Rover, the Tata-owned British carmaker's total revenue for FY 2018 was GBP 25.8 billion, a hike of 6 per cent compared to the previous fiscal year, while profit before tax accounted for GBP 1.5 billion, seeing a drop of 5 per cent against the JLR PBT in FY 2017.

However, in India, Tata Motors still hasn't given a dividend to its shareholders in nearly two years. In fact, the last time the company releases a dividend was in July 2016, during which the company paid a dividend of 20 paisa per share ordinary shareholders and 30 paise to class A shareholders.