Q3 2024 Tata Technologies Ltd Earnings Call Transcript
Key Points
- Tata Technologies Ltd (BOM:544028) recorded a sequential revenue growth of 1.6% and an annualized growth of 14.7% in Q3 FY24.
- Operating EBITDA margin improved to 18.3% from 16.9% in the previous quarter.
- The company secured five large deals in Q3, including a $50 million deal in the automotive vertical and a $25 million deal in aerospace.
- Tata Technologies Ltd (BOM:544028) has been recognized as the number one automotive engineering service provider in India for the sixth consecutive year by Zinnov.
- Employee engagement initiatives have led to a reduction in voluntary attrition to 15.4% in Q3 from 17.2% in Q2.
- Q3 is a seasonally soft quarter due to reduced billing days from festivals and holidays.
- Revenues from VinFast materially dropped in Q3, with further reductions expected in the current quarter.
- The total DSO increased to 95 days at the end of December from 92 days at the end of Q2.
- The services segment, which forms about 78% of revenues, was impacted by holidays and the ramp-down in a mega full vehicle program.
- The effective tax rate increased to 27.6% due to a higher percentage of profits coming from India and the UK.
Ladies and gentlemen, good day and welcome to the Tata Technologies conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vijay Lohia, Head of Investor Relations at Tata Technologies. Thank you and over to you, Mr. Lohia.
Hello everyone and welcome to Tata Technologies third quarter fiscal '24 results call. I am Vijay Lohia, Heading Investor Relations.
With me today are Mr. Warren Harris, CEO and MD, Tata Technologies; and Ms. Savitha Balachandran, CFO, Tata Technologies. This call is for 60 minutes.
Our management team will give a brief overview of the company's performance, followed by a Q&A session. As you are aware, we do not provide specific revenue or earnings guidance, and anything said on this call which reflects our outlook for the future, or which could be construed as a forward-looking statement, must be reviewed in conjunctions with the risks that the company faces.
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