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Informist, Tuesday, Jan. 21, 2025

 

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--Tata Tech Oct-Dec consol net profit INR 1.69 bln vs INR 1.57 bln qtr ago 
--Tata Tech Oct-Dec consol revenue INR 13.17 bln vs INR 12.96 bln qtr ago 
--Tata Tech Apr-Dec consol net profit INR 4.88 bln vs INR 5.22 bln year ago 
--Tata Tech Apr-Dec consol revenue INR 38.83 bln vs INR 38.16 bln year ago 
--Tata Tech Oct-Dec svcs ops sales INR 10.13 bln vs INR 10.05 bln qtr ago 
--Tata Tech Oct-Dec tech segment sales INR 3.05 bln vs INR 2.91 bln qtr ago
--Tata Tech consol operating EBITDA INR 2.35 bln in Oct-Dec 
--Tata Tech consol EBITDA margin 17.8% in Oct-Dec 
--Tata Tech Oct-Dec consol EBIT INR 2.12 bln, up 3.1% on quarter 
--Tata Tech Oct-Dec consol EBIT margin 16.1%, up 20 bps on quarter 
--Tata Tech last 12-month attrition 12.9% VS 13.1% qtr ago 
--Tata Tech headcount at 12,659 as on Dec 31 vs 12,680 qtr ago 
--Tata Tech Oct-Dec consol sales up 1.7% on qtr in constant currency terms 
--Tata Tech Oct-Dec svcs sales up 1.1% on qtr in constant currency terms 
--Tata Tech: Secured 4 large deals in Oct-Dec

 

By Arya S. Biju and Steffy Maria Paul

 

MUMBAI – Tata Technologies Ltd. Tuesday reported high single-digit growth in net profit for the December quarter, marking its highest ever growth since the September quarter of 2023. The company saw sequential growth in revenue during the quarter, after it contracted in the June quarter, led by revenue growth in both technology and services segments. However, on a year-on-year basis, the technology company's net profit fell marginally.

 

Tata Tech's consolidated net profit for the December quarter rose 7% sequentially to INR 1.69 billion, while its revenue rose 1.6% on quarter to INR 13.17 billion. The company's revenue for the quarter was up 1.7% sequentially in constant currency terms. On a year-on-year basis, Tata Technologies' bottom line fell around 1%, while its top line grew 2.2%. 

 

For the nine months ended December, Tata Tech reported a consolidated net profit of INR 4.88 billion, down 6.5% on year. The consolidated revenue for the same period rose nearly 2% on year to INR 38.83 billion. 

 

The company's December quarter earnings highlight the strength of its diversified service offerings, which allowed it to effectively navigate the complexities of the quarter, Chief Financial Officer Savitha Balachandran said in a press release after announcing the company's Oct-Dec earnings.  

 

The services segment of the company reported revenue of INR 10.13 billion, up marginally from INR 10.05 billion reported in the previous quarter. Revenue from the technology solutions segment for the quarter was INR 3.05 billion, up 4.6% from INR 2.91 billion a quarter ago. In constant currency terms, revenue from the services segment rose 1.1% sequentially.

 

For the December quarter, Tata Technologies reported total expenses of INR 11.19 billion, up 2% on quarter. Higher employee-related costs were largely the reason behind the slight increase in expenses. Its employee benefit expenses were INR 6.39 billion, up 5% on quarter. The company's cost for purchases of stock-in-trade rose 4% on quarter to INR 2.41 billion.

 

Tata Technologies' consolidated operating earnings before interest, tax, depreciation, and amortisation for the quarter was slightly lower on quarter. Its operating EBITDA during the quarter was mentioned as INR 2.35 billion in the press release issued by the company. However, the company later clarified that the correct operating EBITDA figure was INR 2.34 billion. It clocked an EBITDA margin of 17.8%, lower than the margin of 18.2% a quarter ago. The company's earnings before interest and tax for the quarter rose 3.1% sequentially to INR 2.12 billion and its EBIT margin was up 20 basis points to 16.1%. 

 

The company secured four large deals during the quarter and said that its pipeline remains healthy. "We are seeing opportunities across digital engineering, smart Manufacturing, Gen AI (generative artificial intelligence), and embedded software solutions, fostering measured optimism for Q4 and FY26," Warren Harris, chief executive officer and managing director, said in a press release.

 

The company currently employs 12,659 people, marginally lower than its strength in the previous quarter. Its trailing 12-month attrition rate was 12.9%, down 20 bps on quarter. 

 

The company's offshore revenue for the quarter was 41.7% of the total revenue, down from 43.7% in the September quarter. The contribution of onshore revenue rose 200 basis points during the December quarter. 

 

On Tuesday, shares of the company closed at INR 816.85 on the National Stock Exchange, up 0.5%. The company detailed its earnings after market hours.  End 

 

Edited by Avishek Dutta

 

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