Tata Technologies Ltd.’s stock dropped as much as 5% after the company’s fourth-quarter net profit and revenue declined. The market capitalization of the firm is Rs 42,406.56 crore, and its shares are currently selling at Rs 1,044.75, a decrease of around 4% from the previous closing price.
Tata Technologies’ Shares Drops By 5%
In Q4FY24, Tata Technologies Ltd. reported a 1% quarterly rise in revenue, reaching Rs. 1,301 crore.
But from Rs. 1,402 crore in Q4FY23 to Rs. 1,301 crore in Q4FY24, revenue fell by 7% year over year.
Tata Technologies Ltd’s net profit dropped from Rs. 170 crore in Q3FY24 to Rs. 157 crore in Q4FY24, an 8 percent quarterly decline.
Net profit decreased from Rs. 217 crore in Q4FY23 to Rs. 157 crore in Q4FY24, a 27 percent year-over-year fall.
Tata Technologies Ltd completed 12 major agreements in FY24, with one above $50 million and five falling between $15 and $25 million. The clientele of the business grew as new customers in different income ranges—$10–50 million, $5–10 million, and $1–5 million—were added.
BMW and Tata Technologies Ltd. established a strategic joint venture to create business IT solutions and automotive software. Furthermore, Tata Technologies and the Telangana government inked a five-year Memorandum of Understanding to build “Advanced Technical Skill Training Centers” at sixty-five industrial training colleges.
22.15% Profit Margin For FY 22-23
In FY 22–23, the company’s return on equity (RoE) increased to 57.04 percent from 24.48 percent in FY 21–22. Likewise, throughout the same time frame, return on capital employed (RoCE) increased from 30.93 percent to 64.28 percent.
Nonetheless, for the fiscal year 22–23, the net profit margin (NPM) was 25.15 percent.
Product development, manufacturing, product lifecycle management, engineering and design, and IT service management are among the areas of expertise for the international product engineering company Tata Technologies Limited, located in India.
It offers a broad range of technical and IT services, mostly to OEMs in the automotive and aerospace industries.
In the engineering and digital services industry, Tata Technologies Ltd. is still a major participant, despite recent drops in net profit and revenue. Tata Technologies Ltd. is well-positioned to take advantage of new opportunities and hold onto its competitive advantage as the automotive and aerospace sectors continue to change.
In order to predict Tata Technologies Ltd.’s future growth trajectory in the competitive engineering services market, investors and stakeholders will be closely observing the company’s performance and strategic efforts.
