Tata Technologies Ltd. (BSE: 544028, NSE: TATATECH), a global leader in engineering and digital services, released its financial performance for the quarter ending September 30, 2024. In the same quarter of the previous fiscal year, Tata Technologies reported a net profit of ₹160.4 crore, according to a regulatory filing. Operational revenue rose by 2.2% to ₹1,296.5 crore, up from ₹1,269.2 crore in the previous year.
Operating EBITDA for this quarter grew by 10% to ₹235.6 crore, compared to ₹214.4 crore in the same period last year. The EBITDA margin increased to 18.2%, up from 16.9% a year ago. In the services segment, revenue reached ₹1,005.1 crore, marking a 1% year-on-year (YoY) increase and a 2% growth quarter-on-quarter (QoQ).
Net income for the quarter stood at ₹157.4 crore, with a net margin of 12.1%. Attrition showed a 60 basis point improvement over the last 12 months (LTM), reducing the rate to 13.1%. The company also saw a net addition of 175 employees, bringing the total workforce to 12,680.
CEO Warren Harris stated, “Our Services segment saw sequential growth of 2% this quarter, supported by a strong order book and robust pipeline. With continued growth in our anchor accounts, we anticipate an even stronger performance in the second half of the fiscal year.”
CFO Savitha Balachandran commented on the company’s approach, emphasizing their focus on operational discipline alongside strategic investments. “Our EBITDA margin of 18.2% reflects improved utilization and increased offshoring, resulting in strong cash flow conversion, exceeding 100% for the first half of the year.”
Tata Technologies secured multiple significant engagements this quarter, including turnkey engineering services for an Asian automotive OEM’s two vehicle refresh projects and e-Propulsion system development for a European luxury automotive client, covering components like inverters and batteries.
They partnered with a global Tier 1 automotive supplier to set up an offshore development center focused on electric powertrain software and established an AI governance framework for a European luxury auto client, emphasizing Responsible AI and standardization.
Additionally, a North American automotive Tier 1 enlisted Tata Technologies’ India-based Global Engineering Center for growth support, and an Asian automotive OEM selected them to deploy an integrated CRM, Lead, and Dealer Management platform across over 16 countries.
Tata Technologies was also awarded a contract by the Maharashtra Industrial Development Corporation (MIDC) to establish a Centre for Invention, Innovation, Incubation, and Training (CIIIT). Tata Technologies (BSE: 544028, NSE: TATATECH) is dedicated to enabling clients across sectors like automotive, aerospace, and industrial machinery to design safer, sustainable, and innovative products, fulfilling the mission of #EngineeringABetterWorld.
