Tata Technologies (Tata Tech) has announced a 15.4 per cent year-on-year (YoY) decline in net profit for the April-June quarter of FY25, with figures dropping to Rs 162.03 crore from Rs 191.55 crore in the corresponding period last year.
The decrease was primarily attributed to increased expenses related to the purchase of technology solutions. However, on a sequential basis, Tata Tech saw a 3.04 per cent rise in net profit from the preceding quarter, reaching Rs 162.03 crore.
Revenue from operations stood at Rs 1,269 crore for the quarter, reflecting a modest 0.9 per cent increase compared to the same period last year. Sequentially, however, there was a decline of 2.5 per cent in revenue.
Tata Technologies management highlighted that the impact of losing key customer VinFast, which had previously weighed down on revenue, is now largely behind them. They expressed optimism about accelerating sequential revenue growth in their services business starting from the current quarter.
“Confidence in our full-year prospects is fuelled by our order book, continued positive momentum within our Anchor accounts, and tailwinds that we expect to continue to intersect with across automotive, aerospace, and industrial heavy machinery,” said Warren Harris, CEO and Managing Director at Tata Tech.
During the quarter, Tata Tech secured several significant deals, including contracts with a global EV battery manufacturer, leading commercial vehicle OEMs, a North American commercial vehicle manufacturer, and a Tier One aerospace company based in Europe.
Despite challenges in the technology solutions segment, which saw a 7.4 per cent sequential decrease, the services segment, constituting two-thirds of Tata Tech’s revenue, remained relatively stable with a marginal 1 per cent decline QoQ. The company also noted an increase in employee expenses and costs associated with technology solutions during the quarter, contributing to profit pressures.