Bengaluru, India: 3^rd May 2024: Tata Technologies Limited (BSE: 544028, NSE: TATATECH), a leading global engineering services company, announced financial results for the quarter ended March 31, 2024.

Year ended 31st March 2024 results highlights

• Total operating revenue up 15.9% YoY to ₹51,172 million.
• Operating EBITDA up 15% YoY to ₹9,413 million.
• In the last 3 years, revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR.
• Profit before tax (PBT) was up 17.1% YoY to ₹9,321 million.
• We closed a total of 12 large deals in FY24, which included one $50 Mn plus deal and five deals in the $15 to $25 million range.
• Our customer pyramid has continued to improve, with 2 customers added in the $10-50 million category, 2in the $5-10 million category, and 3 in the $1-5 million category.
• The board recommended a final dividend of ₹8.40 per equity share, and a special dividend of ₹ 1.65 per equity share, subject to shareholder approval at the AGM.

Quarter ended 31st March 2024 results highlights

• Total operating revenue up 0.9% QoQ to ₹13,010 million.
• In USD terms, total operating revenues were up 1.2% QoQ to $156.6 million. Services segment revenues came in at $120.2 million.
• Operating EBITDA at ₹2,400 million; EBITDA margin at 18.4% vs. 18.3% QoQ (adj.) and 17.3% YoY
• Net income at ₹1,572 million; Net margin at 12.1%.
• 90 bps sequential improvement in [LTM] attrition to 14.5%.

Warren Harris, Chief Executive Officer and Managing Director, said: “I am delighted with the way our business performed in FY24 with revenue growth of 15.9% and a 15% growth in operating EBITDA. In the last 3 years, our revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR. We closed a total of 12 large deals in FY24 which included one $50 Mn plus deal,  and  five  deals  in  the  $15  to  $25  Mn  range.  Our  large  deal  pipeline  remains  healthy  and continues to grow. We are currently engaged in a number of large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter. We continue to lead our industry in Gen AI and Software Defined Devices (SDx) services – as evidenced by the endorsement that we have received from BMW. I am incredibly grateful to the almost 13,000 people of Tata Technologies, who remain committed to helping our customers engineer a better world.”

Savitha Balachandran, Chief Financial Officer, said: “We will continue to follow a balanced approach of exercising operational discipline while strategically investing in capacity and capabilities to seize the opportunity presented by the industry’s structural transformation. Ending the  year  with  a  robust  EBITDA  margin  of  18.4%  and  strong  liquidity  underscores  our  focus  on efficiency and prudent management of resources. Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years, in-line with our stated aspiration. We are excited about our prospects in FY25 and remain committed towards creating long-term shareholder value.”

Tata Technologies is integrating systems engineering for software-defined vehicles (SDVs), leveraging its turnkey vehicle development capabilities to engineer the future of mobility with agility. The company is also utilizing generative AI-powered styling solutions for design studios to fuel innovative design ideas for OEMs. Furthermore, Tata Technologies is empowering manufacturers with Gen AI-powered virtual sales assistants to support sales and after-sales journeys. Utilizing Gen AI for decoding failure modes can help reduce analysis time by 70%, facilitating proactive decision-making and rapid design enhancements. These advancements represent the company’s commitment to innovation and excellence in engineering the vehicles of tomorrow.

Key highlights and recognitions:

• Tata Technologies and BMW Group have signed a strategic Joint Venture Agreement with an aim to collaborate for the development of Automotive Software and Business IT solutions.
• Tata Technologies has renewed its engineering center contract and won strategic deals in AMR Controls and Embedded Software with a leading global designer and manufacturer of access equipment based in North America.
• A leading North American bus manufacturer has onboarded Tata Technologies as its
• Strategic Engineering partner towards Engineering support services engagement.
• A premium UK-based global automotive original equipment manufacturer (OEM) has partnered with Tata Technologies to implement Manufacturing Execution Solutions for a modern luxury electric car.
• Tata Technologies has inked a 5-year Memorandum of Understanding (MoU) with the
• Telengana government to establish advanced technical skill training centers in 65 industrial training institutes in the state.