Tata Technologies Q2 FY25 Earnings: Revenue Up, Profit Down but Optimism Remains

Tata Technologies reported a 2% decrease in consolidated net profit for Q2 FY2024, amounting to ₹157 crore, down from ₹160 crore in the same period last year. However, revenue from operations rose by 2% year-on-year, reaching ₹1,296 crore compared to ₹1,269 crore previously.

Operating Profit and Margin Improvement

The company saw an increase in operating EBITDA, which reached ₹235 crore, a 10% rise from last year. This improvement pushed EBITDA margins up to 18.2% for the quarter, driven by higher offshoring. Tata Technologies achieved strong cash flow, with free cash flow conversion exceeding net income by over 100% for the year’s first half. CEO and MD Warren Harris expressed confidence in a stronger performance in the second half of the fiscal year, supported by a healthy order book and growth in core client accounts.

Growth in Services Division and Strategic Investment

The services division reported sequential growth this quarter, with a 2% rise in revenue. According to CFO Savitha Balachandran, the company is focusing on balancing operational efficiency with strategic investments in key industries to leverage emerging opportunities.

Workforce and Attrition Rate Update

The company’s attrition rate has improved by 60 basis points over the past year, now standing at 13.1%. Tata Technologies also experienced a net increase of 175 employees this quarter, bringing the total headcount to 12,680.

About Tata Technologies Limited

Founded in 1994, Tata Technologies Limited is a worldwide engineering services firm that provides product development and digital solutions. The company primarily focuses on services, offering outsourced engineering and digital transformation to manufacturing clients around the globe, helping them create better products for their customers.

On October 29, 2024, Tata Technologies Ltd’s share price opened at ₹1,004.50, touching the low price of ₹986.75 as of 02:35 PM on NSE.

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