In three months, Tata companies make $7.6bn
The Times of India — October 12, 2007

The Tata group’s 28 listed companies made nearly Rs 30,000 crore ($7.6 billion) in a little over three months. Since July 1, the market capitalisation of the Tata enterprises has grown 10% to Rs 2.65 lakh crore, making it the second-largest business group in terms of valuation, next only to Mukesh Ambani’s group.

The spurt in Tatas’ wealth has come despite TCS showing a decline in market-cap since July, thanks to appreciating rupee eating into export revenues. TCS, that accounts for about 40% of the group’s market cap, witnessed a Rs 5,200 crore ($1.3 billion) dip in market value since July 1.

However, the drop in TCS’s worth has been cushioned by other firms like Tata Steel, Tata Power and Tata Tele. The market-cap of each of these companies have risen by over 40%.

In the last two years, the Tatas have witnessed the value of their effective shareholding in their group companies grow by Rs 1.49 lakh crore, that’s 62%.

And since July, the promoters wealth has increased by about Rs 9,400 crore.

Since July, the star performer in the group has been one of its smallest firms in terms of market capitalisation, Tata Sponge Iron. Helped by higher demand for steel in general, Tata Sponge, a raw material supplier for steel production, saw its market-cap more than double.

Tata Steel has also seen its market value rise by 40% and is now the second-largest company in the Tata Group in terms of market value. Tata Metaliks and Tayo Rolls have also benefited from the rally.

Tata Power has been another money-spinner for the Tatas over the past three months as the government plans to ramp up power generation capacity to cover a severe shortfall in some states. Tata Power has been a strong performer in this sector with a 46% growth in market cap.

The country has also witnessed record additions to cellular subscriber base and Tata Teleservices Maharastra has tapped this growth story.

Since July it has seen its market worth rise 43% to Rs 7,130 crore.