Tata Technologies reported a slight dip in its consolidated net profit for the second quarter ending 30 September 2024, with earnings of Rs 157 crore, a 2 per cent decrease from Rs 160 crore in the corresponding quarter of the previous year.
While profits dipped, the company’s revenue from operations rose by 2 per cent year-on-year (YoY) to reach Rs 1,296 crore, compared to Rs 1,269 crore during the same period last year.
The company’s operational performance saw notable improvement, with operating EBITDA growing by 10 per cent year-on-year to Rs 235 crore. This led to an enhanced EBITDA margin of 18.2 per cent for the quarter, driven largely by an increase in offshoring activities.
"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.
Tata Technologies also demonstrated disciplined financial management, achieving strong cash conversion rates in the first half of the fiscal year, with free cash flow surpassing 100% of net income. Meanwhile, its services division returned to growth, posting a 2 per cent sequential rise in revenue.
Savitha Balachandran, Chief Financial Officer of Tata Technologies, noted that the company is focused on a strategic balance—maintaining operational efficiency while selectively investing to capture emerging opportunities within its core customer segments.
