Tata Technologies reports 7.1% QoQ growth in net income

Pune, India: 21st January 2025: Tata Technologies Limited (BSE: 544028, NSE: TATATECH), a leading global engineering services company, announced financial results for the quarter ended December 31, 2024.
Key highlights for the quarter that ended 31^st December 2024:
• Total operating revenue at ₹13,174 million, up 2.2% YoY and 1.6% QoQ
• Services segment revenue of ₹10,127 million, an increase of 1.2% YoY and 0.8% QoQ
• Services segment revenue in constant currency up by 1.1% QoQ
• Operating EBITDA at ₹2,340 million; EBITDA margin at 17.8%
• EBIT up 3.1% QoQ to ₹2,119 million; EBIT Margin up 20 bps QoQ to 16.1%
• Net income at ₹1,686 million; up 7.1% QoQ
• Net margin at 12.8%, an increase of 70 bps QoQ
• 20 bps sequential improvement in [LTM] attrition to 12.9%
• Workforce strength of 12,659
Warren Harris, Chief Executive Officer and Managing Director, said: “I am encouraged by the resilience our business has demonstrated in uncertain economic conditions with revenue growth across both our business segments. We secured four large deals this quarter, and our pipeline remains healthy. We are seeing opportunities across Digital Engineering, Smart Manufacturing, Gen AI, and Embedded Software Solutions, fostering measured optimism for Q4 and FY26. We are also investing in advanced tools and capabilities to position ourselves for accelerated growth as policy clarity improves and investments in new product development rebounds.”
Savitha Balachandran, Chief Financial Officer, said: “I am pleased with our Q3 performance, marked by 1.7% top-line growth and a 7% sequential increase in PAT. This performance underscores the strength and adaptability of our diversified service offerings, which enabled us to navigate the complexities of the quarter effectively. Our disciplined execution drove strong cash conversion in the first nine months, with free cash flow exceeding 100% of net income. This further strengthened our balance sheet, with a net cash position of $154 million at the end of December. We remain dedicated to delivering sustainable, long-term value for all stakeholders.”
Key highlights and recognitions:
• Tata Technologies has been selected by a European company to innovate cost-efficient and sustainable solutions for next-gen vehicles including software for embedded systems, infotainment systems, and advanced engineering and simulation solutions.
• Tata Technologies has entered into a multi-year contract with a European Luxury Automotive OEM for testing and development activities of their new electric vehicles.
• Tata Technologies has been chosen by a global contract manufacturing entity for initial analysis projects. These projects will further lead to SAP roll-out across this entity’s various manufacturing plants across multiple countries.
• Tata Technologies has been selected by a North American Automotive OEM to streamline engineering processes in their PLM cloud application, including vehicle data management, data security, product definition, and BOM structure.
• Tata Technologies has been selected by a North American Automotive OEM to streamline engineering processes in their PLM cloud application, including vehicle data management, data security, product definition, and BOM structure.
• Tata Technologies has signed a new deal with the Government of Tripura to upgrade 19 Industrial Training Institutes.