Sequentially, net profit declined 7.6% from Rs 170.22 crore in the preceding quarter ending December 2023.
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Revenue from operations for the quarter stood at Rs 1,301.05 crore, a 7.2% fall from Rs 1,402.39 crore in March quarter FY23. Revenue edged up marginally from Rs 1,289.45 crore in the previous quarter.
“In the last 3 years, our revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR…Our large deal pipeline remains healthy and continues to grow. We are currently engaged in a number of large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter,” Warren Harris, chief executive officer and managing director at Tata Tech said.
The Q4 business was weighed by a 28.6% YoY decrease in technology solutions segment, which constitutes one third of its revenues. However, sequentially, the revenues in the segment rose 6.1% quarter-on-quarter (QoQ). Besides, employee expenses and foreign exchange costs also added to profit woes.
The Pune-headquartered Tata group firm reported a marginal increase of 2.2% YoY in growth in services segment, which accounts for two-third of its business. Sequentially, it declined marginally by 0.6%.
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Operating margin remained unchanged at 16.2% from previous quarter while increased from 15.5% a year ago.Results were announced after market hours. Prior to the announcement, shares of Tata Tech ended 0.37% at Rs 1085.90 apiece, lower from the previous close on BSE.
A subsidiary of Tata Motors, the company was listed on the stock exchanges in November end last year. Since then, shares have dipped over 17% on the BSE.
Tata Tech’s board approved its first dividend since listing at a final dividend of Rs 8.40 and special dividend of Rs 1.65 per equity share of Rs 2 face value for the full year.
It increased headcount during the quarter by 65 and for the full year by 1,072 to end at 12,688 total employees as on March end.
Full year
For the full year, profit rose 8.9% to Rs 679.37 crore in FY24 from Rs 624.03 crore last year. In FY24, revenue also increased 15.9% to Rs 5,117.20 crore as compared with Rs 4,414.18 crore in FY23.
In dollar terms, total operating revenue at $617.9 million was up 13% YoY; and in constant currency up 12.6% YoY.
“We closed a total of 12 large deals in FY24, which included one $50 million plus deal and five deals in the $15 to $25 million range,” the company said.
Operating margin inched down to 16.3% in FY24 from in 16.5% FY23.
“Ending the year with a robust EBITDA margin of 18.4% and strong liquidity underscores our focus on efficiency and prudent management of resources. Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years,” said Savitha Balachandran, chief financial officer at Tata Technologies.
