Tata Technologies Ltd, a global player in engineering and digital product development services, announced on Saturday that it has received notification from the Chhattisgarh state government regarding the termination of its project to upgrade 36 government Industrial Training Institutes (ITIs). The project, valued at Rs 1,188.36 crore, aimed to transform these ITIs into Centers of Excellence (CoEs).
In response, Tata Technologies has confirmed that it has sent a letter to the Chhattisgarh government, acknowledging the project’s termination and agreeing to initiate the refund process for the escrow amount related to the project.
The project was originally formalized on July 23, 2023, through a Memorandum of Agreement (MoA) between Tata Technologies and the Chhattisgarh government. Under the MoA, Tata Technologies was the lead industry partner responsible for executing the ITI upgrade initiative across the state.
In other developments, Tata Technologies’ shares dropped by 1.01%, closing at Rs 989.45 per share on Friday. The company also reported a 15.4% decline in consolidated profit after tax, which stood at Rs 162.03 crore for the quarter ending June 2024, compared to Rs 191.53 crore in the same quarter last year. This dip in profits was attributed to increased expenses.
Despite the drop in profits, the company’s consolidated revenue from operations rose slightly to Rs 1,268.97 crore in the first quarter of the current fiscal year, up from Rs 1,257.53 crore in the corresponding period last year. However, total expenses also increased to Rs 1,072.33 crore, compared to Rs 1,035.42 crore a year ago.
Warren Harris, CEO and Managing Director of Tata Technologies, expressed optimism about the company’s future prospects. He highlighted the ongoing investments in alternative propulsion systems, software-defined products, and smart manufacturing, which are driving growth in the manufacturing sector. Harris also mentioned that the company expects an acceleration in the sequential revenue growth of its services business in the coming quarters.
“Confidence in our full-year outlook is bolstered by our strong order book, continued positive momentum within our key accounts, and favorable conditions in the automotive, aerospace, and industrial heavy machinery sectors,” Harris said.
