IT engineering service firm, Tata Technologies, which went public in November last year, saw its revenue grew by 1.6% sequentially to Rs 1,289 crore in the third quarter of FY24. The revenue for second quarter was Rs 1,269 crore.
Post IPO, this is the first quarterly earnings that the Pune-based ER&D company filed with the stock exchanges. Net income rose to Rs 170 crore up by 6.1% quarter on quarter (q-o-q). The net income for second quarter was at Rs 160 crore.
On a year-on-year (y-o-y) basis, both the revenue and net profit grew by 14.7%. Operating margin grew from 16.9% in Q2 to 18.3% in the third quarter.
Warren Harris, CEO and MD, Tata Technologies, said, “Our deal win momentum has stayed robust, with 5 large deals won in the quarter, including one deal with over $50 million in TCV (total contract value) and another one with $25 million in TCV.
We remain positive on customer spending in the automotive vertical as OEMs (original equipment manufacturers) continue to pivot towards electrification and other alternative propulsion systems.” He added, “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.”
Savitha Balachandran, CFO, Tata Technologies, said, “We continue to maintain a sharp focus on profitability and cash flow generation in our business. Despite the seasonally soft quarter, our margins have remained resilient reflecting strong operational rigor and execution.
Our long-term levers of margin growth include increased offshoring, further improvement of our people pyramid and operating leverage as our business scales. The free cash flow to net income conversion in the first nine months of the year has also remained robust.”
While the comapny’s attrition rate has fallen to 15.4% from 17.2% during the three month period, the firm’s total headcount saw a marginal jump by 172 to reach a total of 12,623 at the end of December quarter.
The company also informed on Thursday that Agratas, part of the Tata Group, has partnered with Tata Technologies to enhance the development and manufacturing of advanced battery solutions for the mobility and energy sectors.
