Tata Technologies Limited, a leading global engineering services company, announced financial results for the quarter ended December 31, 2023.

Resilient performance in a seasonally soft quarter

The total operating revenue was up 14.7 per cent YoY and up 1.6 per cent QoQ to Rs 12,895 million. In USD terms, total operating revenues were up 0.9 per cent QoQ and up 13.4 per cent YoY to 154.8 million dollars. Services segment revenues were up 8.3 per cent YoY to 120.2 million dollars.

In constant currency, services revenues were up 5.8 per cent YoY. Continued improvement was seen in the customer ramp-up activity, with 39 customers now in the million-dollar plus revenue bucket compared with 34 at the end of Q3 FY23.

Operating EBITDA rose to Rs 2,366 million. Operating EBITDA margin was at 18.3 per cent, a 140-bps increase QoQ driven by improved service gross margins.

Net income stood at Rs 1,702 million and Net margin at 13.2 per cent.  The net headcount showed an addition of 172 and the total workforce strength is now 12,623.

Warren Harris, Chief Executive Officer and Managing Director, said, "We delivered sequential growth and a healthy operating EBITDA margin of 18.3 per cent in Q3FY24 while making strategic investments in relationships to enable future growth. Our deal win momentum has stayed robust, with 5 large deals won in the quarter, including one deal with over 50 million dollars in TCV and another one with $25 million in TCV. We remain positive on customer spending in the automotive vertical as OEMs continue to pivot towards electrification and other alternative propulsion systems. The aerospace industry is looking upbeat, with a good pickup in demand there. We are investing in building capabilities at scale and remain confident about the long-term fundamentals of our business."

Key highlights and recognitions:

• A leading global automotive OEM has onboarded Tata Technologies as its strategic engineering partner for "FTE Engineering Services" engagement.
• A leading European luxury automotive OEM has chosen Tata Technologies for the design, development, implementation and validation of AUTOSAR-based software for DRVU ECU (Gateway Module).
• A leading aerospace OEM has chosen Tata Technologies for M&T engineering engagements.
• Tata Technologies won a large engagement with a North American automotive OEM for the implementation of SAP and PLM-managed services.
• A leading Asian automotive OEM has chosen Tata Technologies for the development of a premium crossover sedan.
• As per Zinnov Zones 2023, Tata Technologies was rated 1st among all India-based global Automotive Engineering Service Providers and 3rd among global Automotive Engineering Service Providers. Tata Technologies is also ranked 1st among all India-based global Engineering Service Providers and is among the top 2 globally, in electrification. Tata Technologies was also ranked in the Leadership Zone for Aerospace and Industry 4.0.