Tata Technologies reports 15.4% drop in Q1 FY25 profit

19 Jul 2024 , 02:24 PM

Tata Technologies has reported a net profit of ₹162.03 Crore for the June quarter of FY25, reflecting a decrease of 15.4% compared to the same period last year. Despite this decline, the profit figure showed a slight improvement sequentially from ₹157.24 Crore reported in the previous March quarter. The company disclosed this information in an after-market filing on July 18.

Revenue for the June quarter was reported at ₹1,268.97 Crore, which is an increase from ₹1,257.53 Crore recorded in the corresponding quarter of the previous year. However, it represents a decline of 2.46% compared to the revenue of ₹1,299.09 Crore achieved in the March quarter.

At the time of writing on July 19, 2024 at 3:20 pm shares of Tata Technologies is currently trading at ₹999 which is a 1.01% dip than the previous close. Tata Technologies stock has witnessed a total of 23% in the last one year, and 15% dip since the beginning of the year.

Chief Executive Officer and Managing Director Warren Harris highlighted that the overall market conditions remain favorable. He noted that the manufacturing sector is making significant investments in alternative propulsion systems, software-defined products and services, and smart manufacturing technologies to future-proof itself. Harris also indicated that the company has largely overcome the challenges associated with the VinFast transition and anticipates a sequential revenue growth acceleration in its services business starting from the current quarter.

Harris expressed confidence in the company’s full-year prospects, driven by a robust order book and continued positive momentum within key accounts. He also mentioned that the favorable conditions are expected to persist across automotive, aerospace, and industrial heavy machinery sectors.

Tata Technologies Limited is an Indian multinational company specializing in product engineering. It offers a range of services including engineering and design, product lifecycle management, manufacturing, product development, and IT service management. The company caters to original equipment manufacturers in the automotive and aerospace industries, as well as companies in the industrial machinery sector. Tata Technologies is a subsidiary of Tata Motors and has its headquarters in Pune, with regional headquarters in Detroit, Michigan, USA.

As of 2023, Tata Technologies employs over 11,000 people globally, with operations across 18 delivery centers in India, North America, Europe, and the Asia-Pacific region.