Tata Technologies Q3 Results: Profit Rises Over 6% In First Earnings Since Listing
Tata Technologies' net profit rose 6.1% sequentially to Rs 170.2 crore in Q3 FY24 on the back of revenue that increased 1.6% to Rs 1,289.45 crore.
Tata Technologies Ltd. has delivered the goods in its maiden quarterly results.
Net profit of the Tata Group firm rose 6.1% over the previous three months to Rs 170.2 crore in the quarter ended Dec. 31, on the back of revenue that increased 1.6% to Rs 1,289.45 crore, according to an exchange filing on Thursday.
Tata Technologies Q3 Results: Key Highlights (Consolidated, QoQ)
Revenue up 1.6% at Rs 1,289.45 crore.
EBIT up 11.3% at Rs 209.4 crore.
EBIT margin up 141 bps at 16.23%.
Net profit up 6.1% at Rs 170.22 crore.
Note: One basis point is one-hundredth of a percentage point.
In dollar terms, the total operating revenue rose 0.9% sequentially to $154.8 million in the December quarter. It was up 1.9% in constant currency terms. The services segment, which brings more than three-fourths of the revenue, shrank 1.7% to $120.2 million. It was down 0.5% when accounting for forex fluctuations.
“Despite the seasonally weak quarter, our margins have remained resilient, reflecting strong operational rigour and execution,” Savitha Balachandran, chief financial officer at Tata Tech, said in a statement accompanying the earnings. “Our long-term levers of margin growth include increased offshoring, further improvement of our people pyramid and operating leverage, as our business scales.”
Dealmaking
The pureplay ER&D firm also managed to maintain the deal momentum in the October to December quarter. Five large deals were signed during the three-month period, including one worth more than $50 million and another in excess of $25 million.
“We remain positive on customer spending in the automotive vertical as OEMs (original equipment manufacturers) continue to pivot towards electrification and other alternate propulsion systems,” Warren Harris, chief executive officer at Tata Technologies, said in the statement. “We are investing in building capabilities at scale and remain confident about the long-term fundamentals of our business.”
Separately, Tata Technologies announced it has collaborated with Agratas to fast-track the development and industrialisation of battery solutions.
As part of the tie-up, the Tata Group firm will develop digital infrastructure to support production of battery solutions at Agratas’ gigafactories in India and the U.K. The tie-up will allow Agratas to accelerate product development, including the design and integration of battery cells.
On Thursday, Tata Technologies’ shares rose 0.11% to Rs 1,144.20 apiece on the BSE, even as the benchmark Sensex ended the day 0.51% lower at 70,700.67 points. The quarterly results were declared after market hours.
