Tata Technologies Q2 Results: Revenue increases 2%, while net profit drops 2% YoY to ₹157 crore.
Compared to ₹1,269 crore in the same quarter previous year, revenue from operations increased by 2% year over year to ₹1,296 crore in the reporting period.
Tata Technologies said on Monday that its consolidated net profit for the quarter ending September 30, 2024, was ₹157 crore, down 2% from ₹160 crore in the same period the previous year.
Compared to ₹1,269 crore in the same quarter previous year, revenue from operations increased by 2% year over year to ₹1,296 crore in the reporting period.
The business reported operational EBITDA of ₹235 crore, which represents a 10% rise over the prior year. Furthermore, in the second quarter, EBITDA margins increased to 18.2%.
An increase in offshore was the primary driver of the quarter’s margin improvement. Additionally, throughout the first half of the year, the company’s cash conversion was strong due to its rigorous execution; free cash flow exceeded net income conversion by more than 100%.
“Our order book and pipeline remain healthy and combined with the continued positive momentum within our anchor accounts, we are confident that the second half of the fiscal year will show a stronger performance compared to the first half,” Warren Harris, CEO and MD of Tata Technologies, said.
This quarter, the company’s services business saw sequential increase, with sales increasing by 2%.
Savitha Balachandran, CFO of Tata Technologies, stated, “We are committed to preserving a balanced approach that upholds operating discipline while strategically investing in capabilities to capitalize on the emerging opportunities in the industries of our key customer segments.”
Over the past 12 months, attrition has improved by 60 basis points, bringing the rate down to 13.1%. There was a net gain of 175 workers in the workforce, increasing the total number of employees to 12,680.
Tata Technologies’ stock on the National Stock Exchange (NSE) ended Monday at ₹1,001.8, down about 1%.
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