Tata Technologies Ltd

Revenue from operations rose marginally to Rs 1,301.05 crore in Q4 FY24 as compared with Rs 1,289.45 crore in Q3 FY24.

On year on year (YoY) basis, the company’s net profit and revenue declined 27.39% and 7.23%.

Operating EBITDA jumped 1.4% to Rs 242.7 crore in Q4 FY24 as compared with Rs 236 crore in Q3 FY24. Operating EBITDA margin reduced to 15.5% in Q4 FY24 as against 16.2% in Q3 FY24.

Revenue from services segment was down 0.6% QoQ and 2.2% YoY to Rs 974 crore. During the quarter, LTM stood at 14.5% as against 15.4% in Q3 FY24.

In dollar terms, total operating revenue stood at $ 156.6 million, up 12% QoQ. Services segment revenues came in at $120.2 million. In constant currency services, revenue down 1% QoQ.

Warren Harris CEO and MD, Tata Technologies, said, “We closed a total of 12 large deals in FY24 which included one $50 Mn plus deal, and five deals in the $15 to $25 Mn range. Our large deal pipeline remains healthy and continues to grow. We are currently engaged in a number of large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter. We continue to lead our industry in Gen AI and Software Defined Devices (SDx) services – as evidenced by the endorsement that we have received from BMW.

I am incredibly grateful to the almost 13,000 people of Tata Technologies, who remain committed to helping our customers engineer a better world.”

Savitha Balachandran CFO, Tata Technologies,said, “We will continue to follow a balanced approach of exercising operational discipline while strategically investing in capacity and capabilities to seize the opportunity presented by the industry’s structural transformation. Ending the year with a robust EBITDA margin of 18.4% and strong liquidity underscores our focus on efficiency and prudent management of resources.

Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years, in-line with our stated aspiration. We are excited about our prospects in FY25 and remain committed towards creating long-term shareholder value.

Meanwhile, the board has approved the re-appointment of Warren Kevin Harris as CEO and Managing Director of the Company for a term of 3 years and 6 months with effect from September 9, 2024 to March 8, 2028.

Further, the board has also declared a dividend of Rs 8.40 per share for FY24. The dividend will be paid on or after the third day from the conclusion of the 30th AGM.

Tata Technologies is a global product engineering and digital services company.

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Revenue from operations rose marginally to Rs 1,301.05 crore in Q4 FY24 as compared with Rs 1,289.45 crore in Q3 FY24.

On year on year (YoY) basis, the company’s net profit and Revenue declined 27.39% and 7.23%.

Operating EBITDA jumped 1.4% to Rs 242.7 crore in Q4 FY24 as compared with Rs 236 crore in Q3 FY24. Operating EBITDA margin reduced to 15.5% in Q4 FY24 as against 16.2% in Q3 FY24.

Revenue from services segment was down 0.6% QoQ and 2.2% YoY to Rs 974 crore. During the quarter, LTM stood at 14.5% as against 15.4% in Q3 FY24.

In dollar terms, total operating revenue stood at $ 156.6 million, up 12% QoQ. Services segment revenues came in at $120.2 million. In constant currency services, revenue down 1% QoQ.

Warren Harris CEO and MD, Tata Technologies, said, “We closed a total of 12 large deals in FY24 which included one $50 Mn plus deal, and five deals in the $15 to $25 Mn range. Our large deal pipeline remains healthy and continues to grow. We are currently engaged in a number of large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter. We continue to lead our industry in Gen AI and Software Defined Devices (SDx) services – as evidenced by the endorsement that we have received from BMW.

I am incredibly grateful to the almost 13,000 people of Tata Technologies, who remain committed to helping our customers engineer a better world.”

Savitha Balachandran CFO, Tata Technologies,said, “We will continue to follow a balanced approach of exercising operational discipline while strategically investing in capacity and capabilities to seize the opportunity presented by the industry’s structural transformation. Ending the year with a robust EBITDA margin of 18.4% and strong liquidity underscores our focus on efficiency and prudent management of resources.

Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years, in-line with our stated aspiration. We are excited about our prospects in FY25 and remain committed towards creating long-term shareholder value.

Meanwhile, the board has approved the re-appointment of Warren Kevin Harris as CEO and Managing Director of the Company for a term of 3 years and 6 months with effect from September 9, 2024 to March 8, 2028.

Further, the board has also declared a dividend of Rs 8.40 per share for FY24. The dividend will be paid on or after the third day from the conclusion of the 30th AGM.

Tata Technologies is a global product engineering and digital services company.

  The scrip declined 0.37% to end at Rs 1,085.90 on 3 May 2024.

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Net profit of Tata Technologies declined 27.39% to Rs 157.24 crore in the quarter ended March 2024 as against Rs 216.56 crore during the previous quarter ended March 2023. Sales declined 7.23% to Rs 1301.05 crore in the quarter ended March 2024 as against Rs 1402.39 crore during the previous quarter ended March 2023.

For the full year,net profit rose 8.87% to Rs 679.37 crore in the year ended March 2024 as against Rs 624.03 crore during the previous year ended March 2023. Sales rose 15.93% to Rs 5117.20 crore in the year ended March 2024 as against Rs 4414.17 crore during the previous year ended March 2023.

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Tata Technologies announced that the Board of Directors of the Company at its meeting held on 30 May 2024, inter alia, have recommended the final dividend of Rs 8.4 per equity Share (i.e. 420%) , subject to the approval of the shareholders.

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Tata Technologies announced that the Board of Directors of the Company at its meeting held on 3 May 2024, inter alia, have recommended the special dividend of Rs 1.65 per equity Share (i.e. 82.5%) , subject to the approval of the shareholders.

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Tata Technologies will hold a meeting of the Board of Directors of the Company on 3 May 2024.

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The JV would establish automotive software and IT development hub in Pune, Bengaluru and Chennai in India. The main development and operations activities shall be established at Bengaluru and Pune. In Chennai, the focus shall be on business IT solutions.

The JV will leverage Tata Technologies' digital engineering expertise and talent pool in India to contribute to the BMW Group’s strategic expansion of software coding capabilities across global IT hubs and 24/7 operations. The JV will focus on strategic software development, including solutions for software-defined vehicles (SDV).

In automotive software, the focus will be on automated driving, infotainment, and digital services. In business IT, the emphasis will be on digitalization and automation of product development, production and sales.

From the inception of this JV, 100 trained and experienced Tata Technologies professionals will ensure robust and immediate contributions to software projects. The JV is likely to grow quickly to a four-digit number in the following years.

The execution of the JV agreement is subject to review and approval by the relevant authorities.

Warren Harris, CEO and MD of Tata Technologies, said: “Our collaboration with the BMW Group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world.

Aligned with our vision of engineering a better world, we’re excited to bring our expertise to the forefront, aiding BMW Group in engineering premium products, delivering great digital experiences for their customers and propelling its digital transformation journey in Business IT.”

Tata Technologies is a global product engineering and digital services company.

The company had reported 6.1% increase in consolidated net profit to Rs 170.2 crore in Q3 FY24 as compared with Rs 160.4 crore posted in Q2 FY24. Total revenue from operations rose 1.6% QoQ to Rs 1,289.5 crore in Q3 FY24.

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The BMW Group and Tata Technologies have announced that they have signed an agreement to form a Joint Venture (JV) with the aim to establish an automotive software and IT development hub in Pune, Bengaluru and Chennai, India. The execution of the JV agreement is subject to review and approval by the relevant authorities. The main development and operations activities shall be established at Bengaluru and Pune. In Chennai, the focus shall be on business IT solutions.

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S. Sukanya holds Engineering degree in Computer Science and Informatics from Bharathiar University. S. Sukanya joins Tata Technologies as the chief operating officer. As part of executive leadership team, she will be responsible for managing delivery and operations across Tata Technologies businesses.

Sukanya joins the company from Tata Consultancy Services (TCS) where she was working as senior vice president and chief information officer and during her more than 33years stint at TCS, she made valuable contributions to various leadership roles in the company.

Tata Technologies is a global product engineering and digital services company.

Tata Technologies reported 6.1% increase in consolidated net profit to Rs 170.2 crore in Q3 FY24 as compared with Rs 160.4 crore posted in Q2 FY24. Total revenue from operations rose 1.6% QoQ to Rs 1,289.5 crore in Q3 FY24.

The scrip rose 0.19% to end at Rs 1075.45 on Tuesday, 5 March 2024.

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Total revenue from operations rose 1.6% QoQ to Rs 1,289.5 crore in Q3 FY24.

On year on year (YoY) basis, the company’s net profit and total revenue jumped 14.7%.

Operating EBITDA jumped 10.4% to Rs 236.6 crore in Q3 FY24 as compared with Rs 214.3 crore in Q2 FY23. Operating EBITDA margin improved by 140 bps to 18.3% in Q3 FY24 as against 16.9% in Q2 FY24.

Revenue from services segment was up 0.6% QoQ and 9.3% YoY to Rs 1,001.2 crore.

In dollar terms, total operating revenue stood at $ 154.8 million, up 0.9% QoQ and 13.4% YoY. Services segment revenues were up 8.3% YoY to $120.2 million. In constant currency, Services revenues were up 5.8% YoY.

In Q3 FY24, total headcount stood at 12,623 as compared with 12,451 in Q2 FY24. Attrition (on the last 12-month basis) reduced to 15.4% in Q3 FY24 from 17.2% in Q2 FY24 and 23.5% in Q3 FY23.

Warren Harris, chief executive officer and managing director, said, “Our deal win momentum has stayed robust, with 5 large deals won in the quarter, including one deal with over $50 million in TCV and another one with $25 million in TCV. We remain positive on customer spending in the Automotive vertical as OEMs continue to pivot towards electrification and other alternative propulsion systems. The Aerospace industry is looking upbeat, with a good pickup in demand there

We are investing in building capabilities at scale and remain confident about the long-term fundamentals of our business. We have seen our employee engagement initiatives yield success with a steady reduction in attrition levels over the last few quarters. We continue to focus on engineering a better world for our customers, employees, partners and the community.”

Savitha Balachandran, chief financial officer, said: “We continue to maintain a sharp focus on profitability and cash flow generation in our business. Despite the seasonally soft quarter, our margins have remained resilient reflecting strong operational rigor and execution. Our long-term levers of margin growth include increased offshoring, further improvement of our people pyramid and operating leverage as our business scales. The free cash flow to net income conversion in the first nine months of the year has also remained robust.”

Meanwhile, the company and Agratas, Tata Group’s global battery business, have announced their collaboration to scale Agratas’ product development and enterprise systems, supporting the design, development and manufacturing of best-in-class battery solutions.

This new alliance embodies the cross-Tata Group mission to develop a holistic e-Mobility ecosystem that will advance the production and adoption of Electric Vehicles in India and worldwide. With battery cell production due to commence in 2026, the collaboration is helping to propel Agratas’ anchor customers, Tata Motors and JLR, towards a fully electrified future.

Tata Technologies is a global product engineering and digital services company.

The scrip rose 0.11% to settle at Rs 1,144.20 on Thursday, 25 January 2024.

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