Shares of Tata Technologies fell by 5 percent on May 6 as the company’s weak results for the January-March quarter disappointed investors.
As of 1:40 PM, the shares were trading 3.21% lower at ₹1,051.95 on NSE.
The company’s net profit for the March quarter fell around 8 percent on a sequential basis to Rs 157 crore as against Rs 170 crore a quarter ago. The drag on the bottom line was on account of muted revenue growth and lower other income due to a one-time deferred tax asset write back.
Revenue also grew at a sluggish pace of less than 1 percent at Rs 1,301 crore in Q4FY24 as against Rs 1,289.5 crore in Q3FY24. JM Financial attributed the muted revenue growth to project ramp down by the company’s major services client, Vinfast. The management also indicated that some residual draw-down in the Vinfast account will continue in Q1FY25 as well.