Tata Technologies Vs TCS Vs Tata Elxsi: Did Tata's Newly Listed IPO Peformed Better In Seasonally Soft Q3?

Three major technology companies of Tata Group have declared their Q3 results for FY24. They are flagship firms Tata Consultancy Services (TCS), Tata Elxsi and newly listed Tata Technologies. Notably, Tata Tech, the IPO in 20 years by Tata Group, is the latest to declare its earnings report card and will be in focus this week.

In Q3FY24, Tata Group-backed Tata Technologies has performed better than the already large tech stock of the group. In terms of bottom-line and top-line, Tata Tech posted better growth in double-digits compared to TCS and Tata Elxsi. Its constant currency revenue growth was also better.

Tata Technologies:

In Q3FY24, the company showed resilient performance in a seasonally soft quarter, by earning a consolidated net profit of Rs 170.2 crore, registering a growth of 14.72% from Rs 148.38 crore in the same quarter a year ago. Sequentially, the profit was up by 6.1%.

While, net margin stood at 13.2% in the quarter. Moreover, operating EBITDA at Rs 2,366 million. Operating EBITDA margin at 18.3%, a 140-bps increase QoQ driven by improved Services gross margins.

Further, Tata Technologies registered total operating revenue up 14.7% YoY and up 1.6% QoQ to Rs 1,289.5 crore. In USD terms, total operating revenues were up 0.9% QoQ and up 13.4% YoY to $154.8 million. Services segment revenues were up 8.3% YoY to $120.2 million. Also, in constant currency, Services revenues were up 5.8% YoY.

On BSE, Tata Technologies share price stood at Rs 1144.20 apiece as of January 25 with market cap of Rs 46,416.59 crore.

Tata Tech stock price will react to Q3 results this week.

Tata Elxsi:

This tech stock is in the midcap space. It reported a net profit of Rs 206.4 crore in Q3FY24, registering a growth of 3.2% QoQ and 6% YoY. While revenue from operations stood at Rs 914.2 crore, up by 3.7% QoQ and 11.8% YoY.

Also, during the third quarter, operating revenue growth was over 3% sequentially, and on a constant-currency basis, the growth was over 9.4% YoY. Operating margin stood at 29.5%.

Last week, on January 25, Tata Elxsi's share price stood at Rs 7,660.15 apiece, down by 1.37% on BSE with a market cap of Rs 47,704.69 crore.

Tata Consultancy Services:

TCS is the largest IT firm in India and flagship company of Tata Group in terms of market capitalisation. TCS was the first to announce Q3 results in the quarter and also in Tata Group backed companies.

During Q3FY24, TCS reported a consolidated net profit of Rs 11,058 crore, climbing by single-digits of 1.95% year-on-year but declined by 2.5% quarter-on-quarter. On the top-line front, consolidated revenue came in at Rs 60,583 crore, registering a growth of 4.04% as against revenue of Rs 58,229 crore recorded in the same quarter a year ago.

Additionally, latest revenue was up by 1.49% from Rs 59,692 crore in September 2023. In constant currency, TCS revenue growth was at 4% YoY. While EBIT margin expanded by 50 bps to 25% in the quarter.

On BSE, TCS' share price ended at Rs 3,808.20 apiece, down by Rs 39.80 or 1.30% with a market cap of Rs 13,93,439.94 crore as of January 25.