Tata Technologies (TATATECH) Q4 23/24 earnings summary

Executive summary

• FY24 revenue from operations rose 15.9% YoY to ₹5,117.20 crore; operating EBITDA increased 14.7% to ₹941.28 crore and PAT grew 8.9% to ₹679.37 crore.

• The November 2023 IPO was an offer for sale, with shares listing at a 140% premium to the ₹500 issue price; proceeds went to selling shareholders.

• Strategic priorities include expanding software-defined vehicle and digital capabilities, Generative AI adoption, and sustainable engineering solutions.

Financial highlights

• Revenue from operations was ₹5,117.20 crore, up 15.9% YoY; operating EBITDA was ₹941.28 crore, up 14.7% YoY.

• Operating EBITDA margin was 18.4%, versus 18.6% in FY23; EBIT was ₹835 crore with a 16.3% margin, versus ₹726 crore and 16.5%.

• PBT increased 17.1% YoY to ₹932.05 crore; PAT rose 8.9% to ₹679.37 crore, with a 13.3% net margin.

• Consolidated revenue exceeded ₹5,000 crore for the first time; reported revenue increased across both operating segments and major markets.

Outlook and guidance

• Strategic aim over the next two years is to shift the business mix toward software while retaining mechanical engineering engagements and credibility.

• Growth priorities include SDV, cybersecurity, infotainment, digital engineering, aerospace lightweighting and avionics, and IHM digital engineering and smart manufacturing.

• GenAI capability-building plans target basic skills for over 10,000 engineers and intermediate-to-advanced training for 2,000 over the next 12 months.

• The outlook is supported by projected global ER&D spending growth of 16% CAGR through 2026, led by digital engineering, software-defined products, AI, and advanced manufacturing.