Tata Technologies Q4 Profit Drops 27.4% YoY, Revenue Grows Marginally

Tata Technologies (Tata Tech), a leading engineering solutions company, reported a decline in net profit for the January-March quarter of FY24. Here's a breakdown of the key financial highlights:

Profit and Revenue:

• Net profit for Q4 FY24: ₹157.24 crore (down 27.4% YoY)
• Revenue from operations for Q4 FY24: ₹1,301.05 crore (down 7.2% YoY)
• Full-year profit (FY24): ₹679.37 crore (up 8.9% YoY)
• Full-year revenue (FY24): ₹5,117.20 crore (up 15.9% YoY)

Key Performance Indicators (KPIs):

• Operating margin remained steady at 16.2% for Q4 FY24 (unchanged QoQ, up from 15.5% YoY)
• Full-year operating margin: 16.3% (down slightly from 16.5% in FY23)
• Headcount at the end of FY24: 12,688 (increased by 1,072 year-on-year)

Challenges and Opportunities:

• The Q4 results were impacted by a 28.6% YoY decline in the technology solutions segment, a key revenue contributor. However, this segment witnessed a 6.1% QoQ increase.
• Employee expenses and foreign exchange fluctuations also contributed to the profit decrease.
• Management expressed optimism about a healthy large deal pipeline and anticipated increased deal conversions in the current quarter.

Positive Developments:

• Tata Technologies declared its first dividend since listing, with a final dividend of ₹8.40 and a special dividend of ₹1.65 per share.
• The company closed 12 large deals in FY24, including one exceeding $50 million and five deals between $15 million and $25 million.
• Full-year revenue grew in both rupee and constant currency terms.
• The company highlighted its focus on efficiency and resource management, maintaining an EBITDA margin of 18.4% for FY24.

Overall, Tata Technologies' Q4 results were mixed. While profit declined due to specific segment challenges and cost factors, the company's future outlook remains positive. The strong deal pipeline, full-year revenue growth, and continued focus on profitability indicate a promising trajectory for Tata Technologies.