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Explanation: Other Income refers to revenues earned by a company from sources other than its core business operations. These sources may include interest income, dividend income, rental income, gains from the sale of assets, foreign exchange gains, and any other income derived from incidental or non-operating activities. Other income enhances a company’s total revenue and contributes to its overall financial performance.
Example: TCS reports other income of 3,610 crore rupees in FY23. This income includes revenues generated from sources other than TCS’s core business operations, such as interest income from investments, dividend income from equity holdings, rental income from leased properties, and gains from the sale of non-core assets. Other income supplements TCS’s total revenue and can positively impact its profitability. Monitoring changes in other income helps stakeholders understand TCS’s diversified revenue streams and assess its overall financial health and performance.
You can view the quarterly and annual value of Other Income for any company on Radar in the Quarterly Results or Yearly P/L sections.