Tata Technologies, a part of the esteemed Tata group, reported a significant decline in its consolidated net profit, with figures falling 28 per cent to Rs 157 crore for the quarter ended 31 March 2024. The company had recorded a net profit of Rs 217 crore in the corresponding quarter of the previous year.
The downturn in profits comes alongside a decrease in revenue from operations, which dropped by 7 per cent from Rs 1,402 crore in Q4FY23 to Rs 1,301 crore in Q4FY24. This financial setback reflects the challenges faced by the firm in a potentially tightening economic environment.
Adding to the strategic decisions made during this period, the company’s board has confirmed the re-appointment of Warren Kevin Harris as CEO and Managing Director for a term extending from September 9, 2024, to March 8, 2028.
In a statement, 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 per cent and a 15 per cent growth in operating EBITDA. In the last three years, our revenue from operations has grown at 29 per cent CAGR while Operating EBITDA grew at a 35 per cent CAGR. We closed a total of 12 large deals in FY24 which included one USD 50 million plus deal, and five deals in the USD 15 million to USD 25 million 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.”
Despite the dip in profitability, Tata Technologies announced a substantial return to shareholders, approving a final dividend of Rs 8.40 per equity share and a special dividend of Rs 1.65 per share for the financial year.
“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 per ecnt 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 per cent 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,” said Savitha Balachandran, Chief Financial Officer, Tata Technologies.
Tata Technologies’ shares closed 0.5 per cent lower at Rs 1,085 on 3 May ahead of Q4 results announcement.