Tata Technologies Q3 result: Tata Technologies, on Tuesday, January 21, reported a nominal 1 per cent year-on-year (YoY) drop in its consolidated net profit for the December quarter of the current financial year (Q3FY25). The company reported a profit of ₹168.64 crore for the quarter under review compared with a profit of ₹170.22 crore in the corresponding quarter of the last financial year.
Consolidated revenue from operations, however, for Q3FY25 rose 2.2 per cent YoY to ₹1,317.38 crore from ₹1,289.45 crore in the same quarter last year.
While the company's profit dropped marginally on a year-on-year basis, they were positive sequentially.
The company's consolidated profit rose by 7.13 per cent quarter-on-quarter (QoQ), and revenue from operations increased by 1.7 per cent. In Q2FY25, its consolidated profit was ₹157.41 crore and revenue from operations was ₹1,296.45 crore.
“I am pleased with our Q3 performance, marked by 1.7 per cent topline growth and a 7 per cent sequential increase in PAT. This performance underscores the strength and adaptability of our diversified service offerings, which enabled us to navigate the complexities of the quarter effectively," said Savitha Balachandran, Chief Financial Officer of Tata Tech.
"Our disciplined execution drove strong cash conversion in the first nine months, with free cash flow exceeding 100 per cent of net income. This further strengthened our balance sheet, with a net cash position of $154 million at the end of December," Balachandran said.
The company's services segment revenue stood at ₹1,012.7 crore, up 1.2 per cent YoY and 0.8 per cent QoQ. In constant currency terms, the services segment revenue increased by 1.1 per cent QoQ.
Tata Tech said its operating EBITDA for Q3FY25 came at ₹234 crore, while its EBITDA margin stood at 17.8 per cent.
The company's total expenses increased 3.15 per cent year over year to ₹1,119.31 crore from ₹1,085.14 crore in the same quarter last year.
Basic earnings per share (EPS) slipped to ₹4.16 per share with a face value of ₹2 each against ₹4.20 year over year. Sequentially, basic EPS improved by 7 per cent against ₹3.88 in Q2FY25.
Tata Tech secured some key deals with automotive OEMs in Europe and North America during the quarter.
“We secured four large deals this quarter, and our pipeline remains healthy. We are seeing opportunities across digital engineering, smart manufacturing, Gen AI, and embedded software solutions, fostering measured optimism for Q4 and FY26. We are also investing in advanced tools and capabilities to position ourselves for accelerated growth as policy clarity improves and investments in new product development rebound,” said Warren Harris, Chief Executive Officer and Managing Director of Tata Tech.
The stock has remained under pressure over the last year, falling 29 per cent. On a monthly basis, it has been down since October last year.
Tata Technologies shares hit a 52-week high of ₹1,179 on February 23 last year and a 52-week low of ₹791 on January 13 this year.
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