The share price of this leading engineering service firm fell by 2 percent to an intraday low of Rs 989 per share after the company’s net profit decreased by 15.6 percent in Q1FY25.
Share price movement: With a market capitalization of Rs 40,550.63 crores, the shares of Tata Technologies Limited fell around 1 percent at 11:48 am trading at Rs 998.75 apiece. The shares of this company generated both negative returns of 24 percent over the past year and 13 percent over the past 6 months.
Results: Analyzing the Consolidated financials of Tata Technologies Limited on a QoQ basis, the revenue from operations decreased by 2.4 percent from Rs 1,301.05 crores in Q4FY24 to Rs 1,268.97 crores in Q1FY25. Also, The profit before tax (PBT) of the firm decreased from Rs 230.79 crores to Rs 219.64
Examining the Financials of Tata Technologies Limited on a YoY basis, the total revenue from operations increased by 1 percent from Rs 1,257.53 crores in Q1FY24 to Rs 1,268.97 crores in Q1FY25. Also, The net profits decreased by 15.6 percent from Rs 192 crores to Rs 162 crores in the same time frame.
The segment-wise revenue from the services segment declined by 1 percent from Rs 995.06 crores in Q4FY24 to Rs 985.50 crores in Q1FY25. Also from the Technology solutions segment the revenues dropped by 7 percent from Rs 305 crores to Rs 283.47 crores in the same time period.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 58.15 percent and a return on capital employed (ROCE) of 64.28 percent. It has also reported a net profit margin of 25.15 percent for the same period.
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Recent Partnership: Tata Technoligies Limited has partnered with ARM a British-based semiconductor company in the field of Software Defined vehicles (SDVs) to create software-driven cars quicker. This is done by combining Tata Technologies’ expertise in the automotive industry with ARM’s efficient Automotive Enhanced (AE) technology. Together, they plan to help car makers develop these new types of vehicles in a fast-paced manner.
Brokerage Target: The brokerage firm ICICI Securities Limited has provided a buy recommendation on Tata Technologies Limited with an upside potential of 33 percent with the target price being Rs 1,330 per share from the last traded price (LTP) of Rs 995.20 per share.
Shareholding Pattern: As of June 2024, Tata Technologies Limited shareholding pattern stood at 55.39 percent for promoters, 41.20 percent for the public, 1.63 percent for foreign institutional investors, and 1.78 percent for domestic institutional investors.
About the Company: Incorporated in 1994, Tata Technologies Limited is a global engineering services company providing engineering services outsourcing, product development information technology, and product lifecycle management services for automotive and aerospace manufacturers.
Written By Zahal
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