Tata Technologies Limited (BSE: 544028, NSE: TATATECH), a global leader in engineering services, has released its financial results for the quarter ending December 31, 2024. Tata Technologies reported total operating revenue of ₹13,174 million for the quarter, marking a 2.2% year-over-year growth and a 1.6% increase from the previous quarter.
The services segment contributed ₹10,127 million, reflecting a 1.2% annual growth and a 0.8% rise sequentially. In constant currency terms, services revenue grew by 1.1% compared to the prior quarter. Operating EBITDA reached ₹2,340 million, achieving a margin of 17.8%, while EBIT grew by 3.1% quarter-over-quarter to ₹2,119 million, with the EBIT margin improving by 20 basis points to 16.1%.
Net income for the quarter stood at ₹1,686 million, representing a 7.1% increase from the previous quarter, with the net margin rising by 70 basis points to 12.8%. The company’s attrition rate improved by 20 basis points sequentially to 12.9%, indicating strengthened employee retention. As of the quarter’s end, Tata Technologies employed a total workforce of 12,659. These results underscore the company’s steady operational and financial performance, driven by consistent growth across key metrics.
Warren Harris, CEO and Managing Director, remarked, “I am pleased by the resilience of our business in challenging economic conditions, with growth across both of our business segments. We secured four major deals this quarter, and our pipeline remains strong. Opportunities in Digital Engineering, Smart Manufacturing, Gen AI, and Embedded Software Solutions are fueling optimism as we approach Q4 and FY26. We are also focusing on investments in advanced tools and capabilities to drive accelerated growth as policy clarity improves and product development investments recover.”
Savitha Balachandran, CFO, added, “Our Q3 results reflect a solid 1.7% growth in revenue and a 7% sequential increase in profit after tax. Our diversified services and disciplined execution enabled us to navigate the complexities of the quarter effectively. Strong cash conversion was a highlight, with free cash flow exceeding 100% of net income, further strengthening our balance sheet. We closed the quarter with a net cash position of $154 million. We remain focused on generating long-term value for our stakeholders.”
Tata Technologies has been selected by a European company to design cost-effective and sustainable solutions for next-generation vehicles. This partnership focuses on developing advanced software for embedded systems, infotainment platforms, and innovative engineering and simulation tools, demonstrating the company’s expertise in automotive technology. Furthering its commitment to the electric vehicle (EV) revolution, Tata Technologies has secured a multi-year contract with a European luxury automotive original equipment manufacturer (OEM) to assist in testing and development of their upcoming EV portfolio.
Expanding its global footprint, Tata Technologies is working with a renowned contract manufacturer on initial analysis projects, paving the way for large-scale SAP implementations across several manufacturing facilities worldwide. Additionally, the company has joined hands with a leading North American automotive OEM to optimize their engineering processes within the PLM (Product Lifecycle Management) cloud platform. This collaboration focuses on improving vehicle data management, enhancing data security, and refining product definitions and BOM (Bill of Materials) structures, aligning with evolving industry needs.
In the public sector, Tata Technologies has signed an agreement with the Government of Tripura to upgrade 19 Industrial Training Institutes across the state. This initiative reflects the company’s dedication to skill development and enhancing technical education, empowering communities with modernized training infrastructure and advanced learning tools.
Tata Technologies (BSE: 544028, NSE: TATATECH) is a leading global provider of product engineering and digital services. The company helps businesses achieve better products and enhanced experiences by enabling innovation and sustainability across industries. Tata Technologies works with manufacturing companies to conceptualize, develop, and deliver safer, cleaner, and more efficient products that improve the quality of life for all stakeholders. Through its work, the company aims to contribute to its vision of #EngineeringABetterWorld.
