Tata Technologies Limited, a leading global engineering services company, announced its financial results for the quarter ended September 30, 2024.
Key highlights for Q2 FY2025:
- Total operating revenue reached ₹1,296.5 crore, marking a 2.1% YoY and 2.2% QoQ growth.
- Services segment revenue was reported at ₹1,005.1 crore, showing a 1% YoY increase and a 2.0% QoQ rise.
- Operating EBITDA stood at ₹235.5 crore, growing by 9.9% YoY and 1.9% QoQ.
- EBITDA margin improved to 18.2%, up from 16.9% YoY and consistent with 18.2% QoQ.
- Net income reached ₹157.4 crore, with a net margin of 12.1%.
- There was a 60 bps improvement in [LTM] attrition to 13.1%.
- Net headcount addition of 175, bringing the total workforce strength to 12,680.
- Net Profit: ₹157.41 crore, reflecting a decrease of 2.8% from ₹162.03 crore in the previous quarter.
Management Commentary:
Warren Harris, Chief Executive Officer and Managing Director, stated, “Our Services business has returned to sequential growth this quarter with a 2% increase in revenue. 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. The long-term fundamentals of our business remain sound. I would like to express my sincere gratitude to all our employees for their unwavering dedication and commitment to delivering exceptional service to our clients.”
Savitha Balachandran, Chief Financial Officer, added, “We remain focused on maintaining a balanced approach of upholding operating discipline while strategically investing in capabilities to capitalize on the emerging opportunities in the industries of our key customer segments. Our EBITDA margin for the quarter stood at 18.2%, supported by improvements in utilization and increased offshoring. Additionally, our disciplined execution led to strong cash conversion in the first half of the year, with free cash flow to net income conversion exceeding 100%. We are committed to delivering long-term value for all our stakeholders.”
