Tata Technologies’ Q3 Profit After Tax Increases by 14.72% to ₹170.22 crore

Tata Technologies Ltd reports 14.72% rise in consolidated profit after tax in Q3

Tata Technologies Ltd, a global engineering and product development digital services firm, has reported a 14.72 per cent rise in consolidated profit after tax at ₹170.22 crore for the third quarter ended December 2023. This marks the company’s first quarterly results announcement after its public listing.

According to a regulatory filing, the company had posted a consolidated profit after tax (PAT) of ₹148.38 crore in the same quarter last fiscal. Their consolidated revenue from operations in the quarter under review stood at ₹1,289.45 crore, up from ₹1,123.89 crore in the year-ago period. The total expenses were higher at ₹1,085.14 crore compared to ₹947.42 crore in the same period last fiscal.

Tata Technologies CEO and Managing Director Warren Harris expressed satisfaction with the results, noting that despite Q3 being a soft period due to festivals and Christmas holidays, the company was able to achieve growth and drive margin improvement. He also highlighted the robust deal win momentum, with five large deals won in the quarter, including one deal with over $50 million in total contract value (TCV).

Harris disclosed that the company had won a $50 million TCV deal with a big automotive OEM and a $25 million TCV deal with a European aerospace OEM. He added that since the pandemic, the aerospace industry has experienced exponential growth, leading to increased demand. Additionally, the company secured deals with a vehicle top hat deal in China, a digital thread solution for a new energy vehicle company in North America, and a big embedded electronics deal with a luxury OEM in Europe.

Regarding a partnership with Agratas, Harris stated that they have confirmed a partnership in multiple areas, including pack design, industrializing and digitizing gigafactories in the UK and Gujarat, and rolling out enterprise IT systems. He also expressed excitement about the partnership’s impact on Tata Technologies’ position in the EV space and its relevance in the industry.

Looking ahead, Harris remains positive about the customer spending in the automotive vertical as OEMs pivot toward electrification and other alternative propulsion systems. He also sees a good pickup in demand in the aerospace industry. The company is investing in building capabilities at scale and is confident about the long-term fundamentals of its business.

Lastly, Harris mentioned that the company has seen success in its employee engagement initiatives, resulting in a steady reduction in attrition levels over the last few quarters. The company reported a net headcount addition of 172 in the third quarter, bringing the total workforce strength to 12,623.

The original article was published on January 26, 2024.