India's Tata Technologies beats Q3 profit view on services, tech boost

Tata Technologies

21/01/2025 11:50

Jan 21 (Reuters) - India's Tata Technologies  TATE.NS 
reported a bigger-than-expected third-quarter profit, aided by
improved demand in its services and technology segments.
    Tata Technologies provides engineering and technology
services to automobile, aero and heavy machinery makers. 
    Consolidated profit after tax fell marginally to 1.69
billion rupees ($19.52 million) in the October-December quarter,
from 1.70 billion rupees a year ago.
    Analysts, on average, expected a profit of 1.61 billion
rupees, as per data compiled by LSEG.
    Its services segment revenue - which contributes over 78% to
the total - grew 1%, while the smaller technology solutions
segment grew 6%.
    Engineering, research and design (ER&D) services, which
include technology support to industries such as transportation
and communications, contribute a sixth of the revenue to India's
$254 billion technology sector.    
    Companies such as Tata Technologies and Tata Elxsi  TTEX.NS 
are expected to benefit from the ER&D sector quadrupling to as
much as $170 billion between 2023 and 2030, India's National
Association of Software and Service Companies said.
    Tata Technologies' revenue rose 2% to 13.17 billion rupees
in the third quarter, slightly ahead of analysts' estimate of
13.11 billion rupees.
    However, total expenses rose 7% as the company spent more on
technology upgrades.
    Shares of the company closed 0.5% higher ahead of results.


($1 = 86.5810 Indian rupees)

 (Reporting by Aleef Jahan and Ashna Teresa Britto in Bengaluru;
Editing by Eileen Soreng)
 ((aleefjahan.cs@thomsonreuters.com))