Tata Technologies (TATATECH) Q4 21/22 earnings summary

Executive summary

• FY22 delivered record results: revenue rose 47% YoY in USD to $473.5M, operating profit increased 65% to $86.5M, and PAT grew 74% to $58.0M.

• Growth was driven by wallet-share gains, strong non-captive demand, and expansion across automotive, digital, embedded engineering, and education.

• Non-captive revenue contribution increased from 46% in FY20 to 64% in FY22 in the shareholder message, reducing reliance on captive accounts.

Financial highlights

• Consolidated revenue from operations was ₹3,529.57 crore, up 48.2% YoY; total income was ₹3,578.37 crore.

• Consolidated PBT rose 86.1% to ₹586.83 crore; PAT increased 82.7% to ₹436.97 crore, from ₹239.18 crore.

• Operating margin was 18.3%, up 200 bps YoY; operating profit was $86.5M (₹645.6 crore).

• Consolidated basic and diluted EPS were ₹104.52, versus ₹57.21 in FY21.

• Cash and cash equivalents were ₹768.26 crore at Mar. 31, 2022, versus ₹781.33 crore; operating cash flow was negative ₹38.46 crore.

Outlook and guidance

• FY23 priorities include deepening Key and Focus account relationships, growing wallet share, and expanding embedded and digital service lines.

• Planned investment in talent, learning and development, internal systems, and processes is intended to support the next growth phase.

• Services order book reached $250M at Mar. 31, 2022, up 29% YoY.

• Management cited strong momentum and confidence in further market-share gains and sustainable, profitable growth.