Over FY21-23, the company has seen its revenue growing at a compounded annual growth rate of 30%, leading to a 46% growth in the operating profit and a strong 62% growth in the net profit. Its net cash in FY23 was Rs1,029 crore and return on equity was 24%.
Tata Technologies offers services like concept design, vehicle architecture, body and chassis engineering, electrical and electronics systems, and diagnostics. It also offers services like smart manufacturing and data solutions for end-to-end solutions for automobile makers.
In the last two years, the automotive segment has witnessed a strong growth which aided the company’s business growth has continued in the current financial year too.
Tata Tech has a long-term collaboration with anchor clients Tata Motors and JLR, but the company has been diversifying its base to reduce dependence on the anchor clients, whose contribution has fallen to 36% in the six months ended September from over 40%.
Further, Vietnam-based Vinfast is a large auto client for Tata Technologies, and Vietnam brings around 23% of the total revenue for the latter. Investors and analysts would eye the performance of this region in the last quarter.
The company’s strategy to expand its client base and the outlook for major business verticals will be closely tracked by Dalal Street investors and analysts.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
