Tata Technologies' stock price down by 5% today

6 May 2024 , 10:36 AM

Tata Technologies’ shares fell 5% in trading on May 6 as investors were disappointed by the company’s performance in the January-March quarter.

At around 10.26 AM, Tata Tech was trading 3.87% lower at ₹1,044.75 per piece, against the previous close of ₹1,086.80 on NSE. The counter touched an intraday low of ₹1,032.70 on NSE.

The company’s net profit for the March quarter declined by roughly 8% sequentially to ₹157 Crore, compared to ₹170 Crore the previous quarter. The bottom line was dragged down by reduced revenue growth and lower other income as a result of a one-time deferred tax asset write-back.

Revenue increased at a sluggish pace of less than 1% in Q4FY24, reaching ₹1,301 Crore from ₹1,289.5 Crore in Q3. The company’s slow revenue growth was due to a project ramp down by its largest services client, Vinfast. The management also stated that some residual draw-down in the Vinfast account will persist in the first quarter of FY25.

Tata Technologies’ board proposed a final dividend of ₹8.40 and a special dividend of ₹1.65 per equity share of ₹2 each for the fiscal year ending on March 31, 2024. The dividends will be subject to approval at the Annual General Meeting (AGM) and, if approved, will be distributed or dispatched within three days following the conclusion of the 30th AGM, as stated in a regulatory filing by the company.

Tata Technologies reported a 28% decrease in year-on-year net profit from ₹216.5 Crore in Q4FY23 to ₹157.2 Crore in the March 2024 quarter. Tata Technologies’ revenue from operations decreased by 7%, from ₹1,402.3 Crore to ₹1,301 Crore.

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