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Global engineering and product development digital services firm Tata Technologies Ltd on Thursday reported a 14.72 per cent rise in consolidated profit after tax at ₹170.22 crore for the third quarter ended December 2023, its maiden quarterly results announcement after public listing.
The company had posted a consolidated profit after tax (PAT) of ₹148.38 crore in the same quarter last fiscal, Tata Technologies said in a regulatory filing.
Its consolidated revenue from operations in the quarter under review stood at ₹1,289.45 crore against ₹1,123.89 crore in the year-ago period, it added.
The total expenses were higher at ₹1,085.14 crore compared to ₹947.42 crore in the same period last fiscal, the company said.
"In terms of the results we delivered, I think it was a very solid quarter. The Q3 is typically a soft period for us on account of festivals and Christmas holidays but I think the fact that we were able to eke out growth and drive margin improvement is a testament to the rigour that we are driving into our business development teams and sales teams," Tata Technologies CEO and Managing Director Warren Harris told PTI.
The company's deal win momentum has stayed robust, with five large deals won in the quarter, including one deal with over $50 million in TCV (total contract value) and another one with $25 million in TCV, he added.
Elaborating, he said among the five large deals, one is "with a big automotive OEM that is looking to repurpose certain roles that are onshore for offshore locations. In a way, we are the recipients of the responsibility to help them with that. That's a $50 million TCV deal." Further, he said Tata Technologies also won a $25 million TCV deal from a European aerospace OEM which isin and around the use of digital tools to help them with manufacturing throughput.
"Since the pandemic, the aerospace industry has bounced back in an exponential way and the OEMs can't build aircraft fast enough, and so this engagement is focused upon that," Harris said.
- Also read: Tata Technologies blockbuster listing: Why IPO investors can’t have the cake and eat it too
Besides, the company has also won a vehicle top hat deal in China and also the responsibility for rolling out a digital thread solution with one of the new energy vehicle companies in North America, he said, adding the company has also won a deal for a big embedded electronics with one of the luxury OEMs in Europe.
"So in terms of deal flow, we are very excited about that and that augurs well for our prospects in FY25," Harris said. The names of the companies cannot be disclosed due to non-disclosure agreements.
Partnership with Agratas
On the partnership with Agratas, Tata Group's global battery business, Harris said, "We have confirmed a partnership in multiple areas. Pack design, that we are going to industrialise and digitise their gigafactories in the UK and in Gujarat. We are also going to roll out all of their enterprise IT systems to enable them to manage their operations." While Tata Technologies has been working with Agratas since the company was announced, he said, "but this is a major step in terms of the impact that we are likely to have going forward".
“Traditionally, Tata Technologies has done a lot of work in terms of integrating batteries and battery management systems into vehicles, he said, adding the Agratas partnership really takes us upstream and gets us involved in the design of batteries themselves”.
“In terms of our EV proposition, it really extends our relevance and our position in that space.The partnership is aimed to scale Agratas’ product development and enterprise systems, supporting the design, development and manufacturing of best-in-class battery solutions”.
On the outlook, Harris said,"We remain positive on customer spending in the automotive vertical as OEMs continue to pivot towards electrification and other alternative propulsion systems.The aerospace industry is looking upbeat, with a good pickup in demand there. We are investing in building capabilities at scale and remain confident about the long-term fundamentals of our business".
On employee count, he said, "We have seen our employee engagement initiatives yield success with a steady reduction in attrition levels over the last few quarters".
The company said in the third quarter it had a net headcount addition of 172 and the total workforce strength was at 12,623.
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