Tata Technologies net profit in the third quarter ending December 31, 2024, was little changed at ₹168.6 crore, while total operating revenue grew 2.2 per cent to ₹1,317.4 crore, led by cash conversions and new deal wins.
On a sequential basis, profit increased by 7.1 per cent and operating revenue grew 1.6 per cent, while the services segment grew 1.2 per cent. Operating EBITDA declined 1.1 per cent to ₹234 crore.
Savitha Balachandran, Chief Financial Officer, said, “Our disciplined execution drove strong cash conversion in the first nine months, with free cash flow exceeding 100 per cent of net income. This further strengthened our balance sheet, with a net cash position of $154 million at the end of December. We remain dedicated to delivering sustainable, long-term value for all stakeholders.”
EBITDA margin stood at 17.8 per cent, while the net income margin was 12.8 per cent. The company’s headcount declined marginally to 12,659 employees, while the attrition rate stood at 12.9 per cent with a 20 bps improvement.
Deal wins with European and US companies
Tata Technologies entered into a multi-year contract with a European Luxury Automotive OEM for testing and development activities of their new electric vehicles and was selected by a European company to innovate solutions for next-gen vehicles, including infotainment systems, and advanced engineering and simulation solutions. It also entered into a deal with a North American Automotive OEM to streamline engineering processes in their PLM cloud application. Another North American Tier-1 automotive supplier signed a multi-year engagement focused on software platform development and embedded testing. Within India, Tata Technologies will work with the Tripura government to upgrade 19 Industrial Training Institutes.
Warren Harris, Chief Executive Officer and Managing Director, said, “We secured four large deals this quarter, and our pipeline remains healthy. We are seeing opportunities across Digital Engineering, Smart Manufacturing, Gen AI, and Embedded Software Solutions, fostering measured optimism for Q4 and FY26. We are also investing in advanced tools and capabilities to position ourselves for accelerated growth as policy clarity improves and investments in new product development rebounds.”