Tata Technologies Q4 Results: PBT up 17.1% YoY to ₹932.1 crores

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Synopsis:

Tata Technologies Q4 results were announced on May 3, 2024. Consolidated net profit declined by 27.4% year-on-year to ₹157.2 crores, while sequentially, net profit decreased by 7.62% QoQ. The revenue from operations dropped by 7.2% to ₹1,301 crores. Notably, services segment revenue Read more... decreased by 0.6%. Operating EBITDA reached ₹240 crores with a margin of 18.4%. The board proposed dividends pending shareholder approval. Tata Technologies partnered with some prominent brands and sealed significant deals, showcasing positive customer base growth. Positioned for growth in FY25, the company emphasises operational discipline and strategic investment to create long-term shareholder value.Read less

DATA Points:

  1. Total operating revenue: Up 15.9% YoY, up 0.9% QoQ
  2. FY 2023-24 Operating EBITDA margin: 18.4%
  3. Services segment revenue: ₹3,982.6 Crores, up by 12.8% YoY
  4. Final dividend: ₹8.40 per equity share

Introduction

On 3rd May 2024, Tata Technologies, a global leader in product engineering and digital services, announced its financial results for the fourth quarter that ended on 31 March 2024. Tata Technologies Q4 results reported a 27.4% year-on-year decline in consolidated net profit, amounting to ₹157.2 crores for the quarter ending March 31 in the FY 2023-24. This marks a decrease from the net profit of ₹216.6 crores reported during the same period last year (Q4 of FY 2023-24). 

Sequentially, the net profit experienced a decline of 7.62%, falling from 170.2 crores in the December quarter (Q3 of FY 2023-24). The company's revenue from operations dipped by 7.22% to ₹1,301 crores in Q4, compared to ₹1,402.4 crores in the previous year. 

ExploreTata Technologies Limited Share Price

Tata Technologies Q4 Results: 5 Key Financial Highlights

  1. Tata Technologies announced a rise of 0.9% QoQ, quarter-over-quarter to ₹1,301 crores.
  2. The services segment revenue amounted to ₹995.1 crore, showing a decrease of 0.6% quarter-over-quarter.
  3. Revenue from operations dipped by 7.2% to ₹1,301 crores in Q4, compared to ₹1,289.5 crores in the previous quarter and ₹1,402.4 crores in the previous financial year.
  4. Operating EBITDA reached ₹240 crores with an EBITDA margin of 18.4%, compared to 18.3% QoQ (adjusted) and 17.3% YoY.
  5. The board proposed a final dividend of ₹8.40 per equity share and a special dividend of ₹1.65 per equity share, pending shareholder approval at the Annual General Meeting.

Additional Read129 Indian Companies to Release Q4 Results

Tata Technologies Q4 Results: Category Growth

  • Tata Technologies and BMW joined forces through a strategic Joint Venture Agreement to work together on Automotive Software and Business IT solutions.
  • Over the past three years, revenue from operations has seen a steady growth at a compound annual growth rate (CAGR) of 29%, while Operating EBITDA has shown even stronger growth at a CAGR of 35%.
  • In FY 2023-24, Tata Technologies sealed a total of 12 significant deals. Here, one deal exceeded $50 million and five deals fell within the $15 to $25 million range.
  • The customer base has shown positive growth. Two new customers were added in the company’s $10-50 million category, two in the $5-10 million category, and three in the $1-5 million category.

Additional ReadQuarterly Results

Tata Technologies Q4 Results: Financial Metrics (₹ in crores)

Metrics

Q4 FY 24

Q4 FY 23

FY24

FY23

Revenue from operations 

1,301 

1,402.4 

5,117.2 

4,414.2 

Gross Profit

368 

360

1,454 

1,260.9 

Operating EBITDA

240 

242.7 

941.3 

821

Net Income

157.2 

216.6 

679.4

624.1 

Revenue from Services Segment

-

-

3,982.6 

3,531.2 

Gross Margin: Services Segment

-

-

31.5%

30.7%

Operating EBITDA Margin

-

-

18.4%

18.6%

What the Future Holds for Tata Technologies?

Tata Technologies is poised for promising prospects in FY25, leveraging a balanced strategy of operational discipline and strategic investment. With a robust EBITDA margin of 18.4% and strong liquidity, the company hopes to demonstrate efficiency and prudent resource management. 

Having consistently delivered over 18% margins for 3 consecutive years, the go-to engineering partner for companies across landscapes is confident about creating long-term shareholder value. A part of the country’s most trusted brands, Tata Technologies remains committed to seizing opportunities in the industry's structural transformation while ensuring sustainable growth and profitability.

Additional Read: Annual Results

 

Conclusion

In conclusion, Tata Technologies' Q4 results reflect a challenging period with declines in net profit and revenue. However, the company remains resilient, leveraging strategic partnerships, steady revenue growth, and operational efficiency. With a commitment to shareholder value and a focus on sustainable growth, Tata Technologies is well-positioned to navigate industry transformations and emerge stronger in the upcoming financial year.

Results for the Fourth Quarter and Full Year Ended March 31, 2024

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Frequently Asked Questions

What were the key highlights of Tata Technologies Q4 results?

Answer Field

Tata Technologies' Q4 results showed a 27.4% year-on-year decline in consolidated net profit to ₹157.2 crores for the quarter ending March 31, FY 2023-24. Revenue from operations also decreased by 7.2% to ₹1,301 crores in Q4, compared to ₹1,289.5 crores in the previous quarter and ₹1,402.4 crores in the previous financial year.

As per the Tata Technologies Q4 results, what was the company performance in international markets?

Answer Field

Tata Technologies and BMW formed a joint venture for automotive software and business IT solutions. Revenue grew steadily at a 29% CAGR over three years, with significant deals in FY 2023-24, including one over $50 million and positive customer base growth.

Did Tata Technologies declare a dividend?

Answer Field

The board proposed a final dividend of ₹8.40 per equity share and a special dividend of ₹1.65 per equity share for FY 2023-24.

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