Tata Technologies, the newly listed company of Tata Group, has announced its first-ever dividend payout. On May 3rd, alongside announcing its Q4 and FY24 earnings, Tata Technologies also declared huge dividend rewards. The company has recommended a final dividend of Rs 8.40 per share and a special dividend of Rs 1.65 per share, taking its total payout to Rs 10.05 per share.
Tata Technologies Share Price:
After a mega IPO, Tata Tech made a bumper listing in late November last year. Notably, Tata Tech is the first company to be listed on stock exchanges in 19 years since TCS IPO in 2024. The stock is currently a multi-bagger, trading higher by 117.18% returns from its IPO issue price of Rs 500 per share.
By the end of May 3rd, Tata Tech stock was at Rs 1085.90 apiece, down by 0.4% with a market cap of Rs 44,051.55 crore. Tata Tech is a midcap IT stock of Tata Group.
The stock's 52-week high and low is at Rs 1,400.00 apiece and Rs 1,020 apiece respectively.
Tata Technologies Dividend:
As per the regulatory filing, Tata Tech's board has recommended a final dividend of Rs. 8.40 and special dividend of Rs. 1.65 per Equity share of Rs. 2 each of the Company for the financial year ended March 31, 2024. The dividend, if approved at the Annual General Meeting ('AGM'), shall be paid/dispatched on or after the third day from the conclusion of the 30th AGM.
Tata Technologies Earnings:
In Q4FY24, the company posted net income of Rs 1,572 million with net margin of 12.1%. Also, Operating EBITDA at ₹2,400 million; EBITDA margin at 18.4% vs. 18.3% QoQ (adj.) and 17.3% YoY. Total operating revenue up 0.9% QoQ to Rs 13,010 million, Meanwhile, in USD terms, total operating revenues were up 1.2% QoQ to $156.6 million. Services segment revenues came in at $120.2 million.
For FY24, Tata Tech said that in the last 3 years, revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR. While Profit before tax (PBT) was up 17.1% YoY to Rs 9,321 million. Total operating revenue up 15.9% YoY to Rs 51,172 million.
Further, Tata Tech said that it closed FY24 with a total of 12 large deals in FY24, which included one $50 Mn plus deal and five deals in the $15 to $25 million range. Whereas, its customer pyramid has continued to improve, with 2 customers added in the $10-50 million category, 2 in the $5-10 million category, and 3 in the $1-5 million category.
Warren Harris, Chief Executive Officer and Managing Director, said: "I am delighted with the way our business performed in FY24 with revenue growth of 15.9% and a 15% growth in operating EBITDA. In the last 3 years, our revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR."
He added, "We continue to lead our industry in Gen AI and Software Defined Devices (SDx) services - as evidenced by the endorsement that we have received from BMW. I am incredibly grateful to the almost 13,000 people of Tata Technologies, who remain committed to helping our customers engineer a better world."
Also, Savitha Balachandran, Chief Financial Officer said, We will continue to follow a balanced approach of exercising operational discipline while strategically investing in capacity and capabilities to seize the opportunity presented by the industry's structural transformation. Ending the year with a robust EBITDA margin of 18.4% and strong liquidity underscores our focus on efficiency and prudent management of resources."
Balachandran further said, "Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years, in line with our stated aspiration. We are excited about our prospects in FY25 and remain committed to creating long-term shareholder value."
About Tata Technologies:
Tata Technologies is integrating systems engineering for software-defined vehicles (SDVs), leveraging its turnkey vehicle development capabilities to engineer the future of mobility with agility. The company is also utilizing generative AI-powered styling solutions for design studios to fuel innovative design ideas for OEMs.
Furthermore, Tata Technologies is empowering manufacturers with Gen AI-powered virtual sales assistants to support sales and after-sales journeys. Utilizing Gen AI for decoding failure modes can help reduce analysis time by 70%, facilitating proactive decision-making and rapid design enhancements. These advancements represent the company's commitment to innovation and excellence in engineering the vehicles of tomorrow.
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