Tata Technologies Limited, a leading global engineering services company, announced financial results for the quarter ended September 30, 2024.
Key highlights for the quarter that ended 30th September 2024:
• Total operating revenue at ₹12,965 million, up 2.1% YoY and 2.2% QoQ
• Services segment revenue of ₹10,051 million, an increase of 1% YoY and 2.0% QoQ
• Operating EBITDA at ₹2,355 million, up 9.9% YoY and 1.9% QoQ
• EBITDA margin at 18.2%, vs. 16.9% YoY and 18.2% QoQ
• Net income at ₹1,574 million; Net margin at 12.1%
• 60 bps improvement in [LTM] attrition to 13.1%
• Net headcount addition of 175; Workforce strength of 12,680
Warren Harris, Chief Executive Officer and Managing Director, said: “Our Services business has returned to sequential growth this quarter with a 2% increase in revenue. Our order book and pipeline remain healthy and combined with the continued positive momentum within our anchor accounts, we are confident that the second half of the fiscal year will show a stronger performance compared to the first half. The long-term fundamentals of our business remain sound. I would like to express my sincere gratitude to all our employees for their unwavering dedication and commitment to delivering exceptional service to our clients.”
Savitha Balachandran, Chief Financial Officer, said: “We remain focussed on maintaining a balanced approach of upholding operating discipline while strategically investing in capabilities to capitalize on the emerging opportunities in the industries of our key customer segments. Our EBITDA margin for the quarter stood at 18.2%, supported by improvements in utilization and increased offshoring. Additionally, our disciplined execution led to strong cash conversion in the first half of the year, with free cash flow to net income conversion exceeding 100%. We are committed to delivering long-term value for all our stakeholders.”
Key highlights:
• Tata Technologies has been selected by an Asian Automotive OEM for a mid-cycle refresh turnkey project for two of their vehicles. These projects entail a comprehensive suite of automotive engineering services.
• A European Luxury Automotive OEM has chosen Tata Technologies for the development of e-Propulsion system covering components like inverters, batteries and charging systems.
• A global Tier 1 automotive leader has chosen Tata Technologies to establish an offshore development center (ODC) which will focus on developing embedded software for electric powertrain products.
• For a European luxury auto OEM, we have initiated an AI Governance framework centered around key pillars like Responsible AI, use of large language models (LLMs), AI standardization, AI controls, and AI enablement.
• Tata Technologies has been selected by a North American automotive Tier-1 to support their multi-year growth plans through their India-based GEC, as a part of their cost efficiency initiatives.
• An Asian automotive OEM has chosen Tata Technologies to implement a comprehensive CRM platform, along with Lead Management and Dealer Management systems, aimed at delivering a unified “One Country, One Solution” approach across the client’s global presence in over 16 countries.
• Tata Technologies has been selected by Maharashtra Industrial Development Corporation (MIDC) to establish a Centre for Invention, Innovation, Incubation, and Training (CIIIT).
