In response to the recent performance, Chandrasekaran has set ambitious revenue targets for the company.
For Indian companies, the second quarter did not meet expectations, as many reported only decent numbers. Even firms from one of India’s top conglomerates, the Tata Group, posted muted results for the July-September 2024 period. This was not well-received by Tata Sons’ Chairman, N. Chandrasekaran, who has issued a set of instructions to the group’s CEOs.
In response to the recent performance, Chandrasekaran has set ambitious revenue targets for the company, backed by major capital allocation. During internal meetings with the companies’ chief executives, he instructed them to aggressively pursue growth.
The head honcho of the Tata Group has reportedly been stressing the necessity of setting high aspirations. He’s mentioned that regardless of the fact that profit margins can be altered over time, nabbing opportunities for growth as they crop up shouldn’t be overlooked, as executives who have a keen understanding of the scenario have quoted in the Economic Times.
It is noteworthy that, Chandra is holding the position of the Chairman of Tata Sons, the holding company of the Tata Group that has a market capital of USD 375 billion.
What was N Chandrasekaran’s Message to Tata Group CEOs
The leader of Tata Sons is passionately calling on their executives to focus on preserving the company’s robust position amidst an increasingly competitive business environment, as per the Economic Times,
“While some quarters may pose challenges, he has emphasised the importance of seizing significant growth opportunities in each sector with a long-term vision,” an executive told ET.
“Our chairman is clear that cyclical quarters can be no excuses and that the goal has to be scalable profitable growth,” a top executive added.
Single-Digit Growth
Chandra’s announcement comes into light following the disclosure that a majority of the businesses under the Tata umbrella, including the likes of Tata Consultancy Services, Tata Motors, Tata Steel, and Tata Power, have undergone only single-digit increases in revenue during the initial half of FY25.
- Tata Motors experienced a minimal year-over-year revenue increase of just 1%.
- Tata Consultancy Services reported a modest 6% growth in both profit and revenue compared to the previous year.
- Titan faced a significant decline, with a 15% drop in net profit for the first half of the fiscal year.
- The overall profit trajectory of these companies has slowed down considerably.
- These financial challenges highlight a tough economic environment for major Indian corporations.