Boosted by five strategic agreements in the automotive and aerospace sectors, the company announced an operating revenue of Rs 1,269 crore for the first quarter of fiscal year 2025.
Tata Technologies, a leader in engineering services, announced that it has secured a significant contract to design and develop batteries for a global electric vehicle (EV) battery manufacturer. This news accompanied the company’s financial performance update for the first quarter of fiscal year 2025. Despite not disclosing the new customer’s name, it’s known that Tata Technologies previously collaborated with Tata Group’s cell-manufacturing venture, Agratas, in January this year.
In Q1 FY2025, Tata Technologies reported a modest year-on-year revenue growth of 0.9 per cent, achieving total operating revenue of Rs 1,269 crore. However, the revenue experienced a 2.5 per cent decline compared to the previous quarter. The services segment also decreased, with revenue dropping 1% to Rs 985 crore. The company’s operating EBITDA for the quarter stood at Rs 231 crore, with an EBITDA margin of 18.2 per cent, slightly below the 18.4 per cent recorded in the preceding quarter. Net income increased by 3.1 per cent quarter-over-quarter, reaching Rs 162 crore.
Warren Harris, CEO and Managing Director of Tata Technologies, remarked on the favourable market conditions and the company’s strategic progress, especially noting the completion of development phases for two VinFast EV projects. Harris highlighted the expected acceleration in sequential revenue growth starting from the current quarter.
Furthermore, Tata Technologies recently secured additional strategic engagements, including a partnership with a leading commercial vehicle (CV) OEM to develop a middleware stack and a contract with a North American CV manufacturer for cabin designs and closures. The company has entered a multi-year agreement with a European Tier-1 aerospace company to develop business and first-class aircraft seats in the aerospace sector.
A European luxury automotive OEM chose Tata Technologies to create a cloud-based virtual platform for future SoC/MCU hardware architectures. These five strategic wins across the automotive and aerospace sectors have significantly bolstered the company’s prospects, resulting in a 70bps sequential improvement in the net income margin to 12.8 per cent for Q1 FY25.
Savitha Balachandran, Chief Financial Officer at Tata Technologies, emphasized the company’s resilient margins and solid operational discipline. She stated that Tata Technologies remains committed to strategic investments in key growth areas while optimizing costs and enhancing efficiency. Balachandran expressed confidence in the company’s sustainable growth and long-term success, which are underpinned by robust cash flow management and efficient collection processes.
