Tata Technologies Q2 Results: Net profit declines 2% YoY to ₹157 crore, revenue rises 2%

Tata Technologies, on Monday, announced a 2 per cent decrease in its consolidated net profit for the quarter ending September 30, 2024, amounting to ₹157 crore, compared to ₹160 crore in the same quarter last year.

Revenue from operations in the reporting quarter rose by 2 per cent year-on-year to ₹1,296 crore, compared to ₹1,269 crore in the same quarter last year.

The company announced an operating EBITDA of ₹235 crore, reflecting a 10 per cent increase compared to the previous year. Additionally, EBITDA margins rose to 18.2 per cent in the second quarter.

The margin improvement in the quarter was driven by a rise in offshoring. Furthermore, the company's disciplined execution resulted in robust cash conversion during the first half of the year, with free cash flow surpassing net income conversion by over 100 per cent.

"Our order book and pipeline remain healthy and combined with the continued positive momentum within our anchor accounts, we are confident that the second half of the fiscal year will show a stronger performance compared to the first half," said Warren Harris, CEO and MD, Tata Technologies.

The company's services division has experienced sequential growth this quarter, with revenue rising by 2 per cent.

“We remain focussed on maintaining a balanced approach of upholding operating discipline while strategically investing in capabilities to capitalise on the emerging opportunities in the industries of our key customer segments," said Savitha Balachandran, CFO, Tata Technologies.

Attrition improved by 60 basis points over the last 12 months, reducing the rate to 13.1 per cent. The workforce experienced a net increase of 175 employees, bringing the total headcount to 12,680.

On Monday, Tata Technologies shares finished almost 1 per cent down at ₹1,001.8 on the National Stock Exchange (NSE).