Warren Harris, Tata Technologies chief executive officer, has several reasons to be in an upbeat mood. The blockbuster listing of the company’s stock is the most obvious one. The other one is the significant improvement in the company’s financial performance in recent years.
Harris says although the company will continue to focus on its main strengths, it may also look at areas like high-tech and medical equipment in the future. “The response to the IPO will surely help improve brand perception. The company is currently focusing on building capabilities across multiple dimensions,” he said in an interview with FE Online recently.
He added that both Tata Motors and JLR are its anchor clients, with whom they will work across the product value chain from product engineering to digital transformation solutions. “Our anchor clients (Tata Motors and JLR) account for approximately 34% of our FY23 revenues,” he added.
The company also works with other Tata group companies like Air India and Tata Steel, and will collaborate with them on their strategic goals. “We believe that we are well positioned to benefit from the Tata group’s business priorities to increase investment in EVs, aerospace and defence. The ‘One Tata’ philosophy further benefits group companies with focus on utilising scale, simplification, and synergies between Tata Group companies, Harris added.
Tata Technologies, a subsidiary of automobile major Tata Motors, is a pure-play manufacturing-focused Engineering Research & Development (ER&D) company, serving the automotive industry.
Over the years, it has made several acquisitions. In 2005, Tata Technologies acquired INCAT International UK for £53.40 million (Rs 411 crore) to globally scale up its domain expertise in engineering and design, and product lifecycle management (PLM) in the automotive, aerospace and engineering markets.
In 2013, the company acquired US-based Cambric Corporation, an engineering services company providing turnkey solutions, for $32.5 million (around Rs 175 crore).
Later in 2017, Tata Technologies acquired Escenda Holding AB to expand its operations in Europe to tap the growth opportunity in automotive and industrial machinery sectors.
The company’s net profit has risen to Rs 624.03 crore in FY23 from Rs 436.99 crore in FY22 and Rs 239.17 crore in FY21 — a significant growth over the past two years.
Its revenue from operation rose to Rs 4,414.17 crore in FY23 from Rs 3,529.58 crore in FY22 and Rs 2,380.91 crore in FY21. Its Ebitda rose to Rs 820.93 crore in FY23 from Rs 645.66 crore in FY22 and Rs 385.71 crore in FY21.