Tata's First IPO In 20 Years, Announces Quarterly Results; Earns Q3 Profit Of Rs 170 Crore, Up 15% YoY

Tata Technologies, the first IPO by Tata Group in 20 years, has declared its quarterly results for the period ending December 31, 2023. The company showed resilient performance in a seasonally soft quarter. In Q3FY24, the company earned 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%.

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

On the top-line front, 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.

Warren Harris, Chief Executive Officer and Managing Director said: "We delivered sequential growth and a healthy operating EBITDA margin at 18.3% in Q3FY24 while making strategic investments in relationships to enable future growth. Our deal-win momentum has stayed robust, with 5 large deals won in the quarter, including one deal with over $50 million in TCV and another one with $25 million in TCV."

Also, the company continue to record improvement in customer ramp-up activity, with 39 customers now in the million-dollar-plus revenue bucket compared with 34 at the end of Q3 FY23.

Looking ahead, Harris added, "We remain positive on customer spending in the Automotive vertical as OEMs continue to pivot towards electrification and other alternative propulsion systems. The
The aerospace industry is looking upbeat, with a good pickup in demand there. We are investing in building capabilities at scale and remain confident about the long-term fundamentals of our business. We have seen our employee engagement initiatives yield success with a steady reduction in attrition levels over the last few quarters."

Tata Tech continues to focus on engineering a better world for its customers, employees, partners and the community, the CEO added.

Further, Tata Technologies headcount increased by 172, totalling its worforce strength to 12,623 employees. Also, there was 180 bps sequential improvement in [LTM] attrition to 15.4%.

Tata Technologies is the first IPO of Tata Group since TCS went public in 2004. Tata Tech was listed on BSE and NSE in late November last year.

On BSE, Tata Tech's share price stood at Rs 1144.20 apiece, marginally up with a market cap of Rs 46,416.59 crore. From its IPO price of Rs 500, the stock is currently up by 129% on the exchange.

Tata Technologies is a global product engineering and digital services company focused on fulfilling our mission of helping the world drive, fly, build, and farm by enabling our customers to realize better products and deliver better experiences.

Tata Tech is a strategic engineering partner businesses turn to when they aspire to be better. Manufacturing companies rely on Tata Tech to enable them to conceptualize, develop, and realize better products that
are safer and cleaner and improve the quality of life for all the stakeholders, helping the company to achieve its vision of #EngineeringABetterWorld.