Sequentially, net profit rose 3.04% from Rs 157.24 crore in the preceding quarter ending March 2024.
Revenue from operations for the quarter stood at Rs 1,269 crore, up 0.9% on-year basis but down 2.5% sequentially.
The management highlighted that the impact of losing key customer VinFast is behind, and the company is back on track to accelerate its services business.
“The VinFast transition is now largely behind us, and we fully expect the sequential revenue growth of our services business to accelerate from the current quarter,” Warren Harris, chief executive officer and managing director, Tata Tech said in a statement.
“Confidence in our full-year prospects is fuelled by our order book, continued positive momentum within our Anchor accounts, and tailwinds that we expect to continue to intersect with across automotive, aerospace, and industrial heavy machinery,” he said.
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The Vietnamese EV company was heavily weighing down on Tata Tech’s revenue and brokerages had cut their growth forecasts highlighting client concentration risk.Among major deal wins during the quarter, Tata Tech said it has been selected by a global EV battery manufacturer for battery design, by a leading commercial vehicle OEM, by another North American commercial vehicle manufacturer and also signed a multi-year engagement with a European Tier One aerospace company.
The Q4 business was weighed by a 7.4% sequential decrease in technology solutions segment, which constitutes one third of its revenues. However, the services segment, which constitutes the rest two-third of revenue, remained almost constant, marking a marginal decline of 1% QoQ. Besides, employee expenses and cost for purchase of technology solutions increased for the quarter and added profit woes for the Pune-headquartered company.
Results were announced after market hours. Prior to the announcement, shares of Tata Tech ended 0.64% lower at Rs 1009.25 apiece on BSE Thursday.
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.
