GURUGRAM- The Tata Group’s aviation business under Air India Group has made significant strides in financial performance, according to the Tata Sons FY24 annual report.
The conglomerate’s aviation businesses, comprising Air India (AI), Air India Express (IX), Vistara (UK), and AIX Connect (I5), have reduced their losses to Rs 6,337 crore from Rs 15,414 crore in the previous fiscal year.
Air India Losses in FY24
Air India, which was privatized in 2022, achieved a record-breaking consolidated revenue of Rs 51,365 crore in FY24. This 24% increase from the previous year stems from expanded capacity to 105 billion available seat kilometres (ASKM) and an improved passenger load factor of 85%.
In contrast, InterGlobe Aviation, parent of IndiGo (6E), India’s largest carrier, reported revenue of Rs 68,904 crore and a net profit of Rs 8,167 crore ($1 Billion) in FY24.
The Tata Group’s digital and electronics business experienced substantial growth, surging 148% to Rs 1,612 crore. However, net losses in this sector widened to Rs 2,223 crore from Rs 1,723 crore.
A prominent domestic investment fund manager, speaking on condition of anonymity with ET, emphasized the group’s focus on future-oriented businesses. The executive noted that challenges in the aviation and e-commerce sectors would be addressed through effective strategy execution.
The fund manager highlighted the critical nature of these sectors for nation-building and expressed confidence in the Tata Group’s leadership to overcome obstacles in these competitive industries.
Airlines Wise Report
Air India has significantly improved its financial performance, narrowing standalone losses to Rs 4,444 crore in FY24 from Rs 11,388 crore in FY23. The national carrier’s turnover surged 23% to Rs 38,812 crore during this period.
Vistara, operated by Tata SIA Airlines, reported a 29% increase in turnover to Rs 15,191 crore. The airline reduced its losses to Rs 581 crore in FY24, down from Rs 1,394 crore in the previous year.
Air India Express, the Tata group’s low-cost carrier, has reported a net loss of Rs 163 crore for the fiscal year 2023-24 (FY24). This marks a significant reversal from the previous year’s profit of Rs 117 crore. The airline’s shift into the red is noteworthy, as it represents only the second instance of loss in the past nine years.
The carrier’s financial performance shows a mixed picture. While income rose by 33 percent year-on-year to Rs 7,600 crore in FY24, expenditure outpaced this growth, increasing by 38.3 percent to Rs 7,763 crore during the same period. This disproportionate rise in expenses contributed to the airline’s loss-making position.
AIX Connect, another entity within the Tata Group’s aviation portfolio, also faced financial challenges. The company incurred a substantial net loss of Rs 1,149 crore in FY24. However, this figure represents an improvement from the previous fiscal year, when AIX Connect reported a net loss of Rs 2,750 crore.
Also Read: Air India Eyes Separate Cargo Airline with New Freighter Planes
Tata’s Growing Portfolio
Tata Digital’s portfolio attracted 20.76 million transacting customers in FY24, generating an aggregate gross merchandise value (GMV) of Rs 37,355 crore.
Tata Sons, the group’s holding company, saw a 57% rise in net profit to Rs 34,654 crore, while revenue increased 25% to Rs 43,893 crore. The company distributed its highest-ever dividend of Rs 35,000 per share to shareholders.
Tata Sons Chairman N Chandrasekaran received a remuneration of Rs 135 crore in FY24, marking a nearly 20% increase from Rs 113 crore in FY23. This compensation included a salary of Rs 12.43 crore and a “commission” of Rs 121.50 crore.
What are your thoughts on Air India Group’s improved financial performance? When it will report its first profits? Let us know in the comments.
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Air India Group FY24 Financial Results FAQs
Tata Air India Group reported a loss of Rs 6,337 crore. While Air India alone reported a loss of 4,444 crore INR.
Air India Group reported a revenue of 51,365 crore in FY24. Out of this 38,812 crore are solely from Air India. While Vistara reported a revenue of 15,191 crore and Air India Express reported 7,600 crore in revenue.
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