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IT Software products company Tata Technologies announced Q4FY24 & FY24 results:
Q4FY24 Financial Highlights:
- Total operating revenue up 0.9% QoQ to Rs 13,010 million.
- In USD terms, total operating revenues were up 1.2% QoQ to USD 156.6 million. Services segment revenues came in at USD 120.2 million.
- Operating EBITDA at Rs 2,400 million; EBITDA margin at 18.4% vs. 18.3% QoQ (adj.) and 17.3% YoY
- Net income at Rs 1,572 million; Net margin at 12.1%.
- 90 bps sequential improvement in [LTM] attrition to 14.5%.
FY24 Financial Highlights:
- Total operating revenue up 15.9% YoY to Rs 51,172 million.
- Operating EBITDA up 15% YoY to Rs 9,413 million.
- In the last 3 years, revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR.
- Profit before tax (PBT) was up 17.1% YoY to Rs 9,321 million.
- We closed a total of 12 large deals in FY24, which included one USD 50 million plus deal and five deals in the USD 15 to USD 25 million range.
- Our customer pyramid has continued to improve, with 2 customers added in the USD 10-50 million category, 2 in the USD 5-10 million category, and 3 in the USD 1-5 million category.
- The board recommended a final dividend of Rs 8.40 per equity share, and a special dividend of Rs 1.65 per equity share, subject to shareholder approval at the AGM.
Warren Harris, Chief Executive Officer and Managing Director, said: “I am delighted with the way our business performed in FY24 with revenue growth of 15.9% and a 15% growth in operating EBITDA. In the last 3 years, our revenue from operations has grown at 29% CAGR while Operating EBITDA grew at a 35% CAGR. We closed a total of 12 large deals in FY24 which included one USD 50 million plus deal, and five deals in the USD 15 to USD 25 million range. Our large deal pipeline remains healthy and continues to grow. We are currently engaged in a number of large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter. We continue to lead our industry in Gen AI and Software Defined Devices (SDx) services – as evidenced by the endorsement that we have received from BMW. I am incredibly grateful to the almost 13,000 people of Tata Technologies, who remain committed to helping our customers engineer a better world.”
Savitha Balachandran, Chief Financial Officer, said: “We will continue to follow a balanced approach of exercising operational discipline while strategically investing in capacity and capabilities to seize the opportunity presented by the industry’s structural transformation. Ending the year with a robust EBITDA margin of 18.4% and strong liquidity underscores our focus on efficiency and prudent management of resources. Overall, I am pleased with our execution in FY24 and, also with having delivered over 18% margins consistently over the last three consecutive years, in-line with our stated aspiration. We are excited about our prospects in FY25 and remain committed towards creating long-term shareholder value.”
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