India's Tata Technologies posts third straight drop in profit as EV demand slows

Tata Technologies

28/10/2024 12:11

Oct 28 (Reuters) - India's Tata Technologies  TATE.NS 
reported a drop in profit for the third consecutive quarter,
hurt by slowing global demand for electric vehicles.
    Tata Technologies provides engineering and technology
services to automobile, aero and heavy machinery makers. Indian
EV market leader Tata Motors  TAMO.NS  is its parent and also
its top client.
    Its consolidated profit after tax dropped 2% to 1.57 billion
rupees in the July-September quarter. However, this was also its
slowest decline in the three quarters when profits have fallen.
    Use of electric vehicles has grown rapidly in recent years
to account for 2% of India's annual sales of 4.2 million cars,
but sales growth is now faltering, which analysts blame on high
prices and a lack of charging facilities.
    Globally too, some car makers are cutting back on their
previous EV targets as consumers opt for hybrid vehicles that
are cheaper than their electric counterparts.
    Tata Technologies' revenue rose 2% to 1.30 billion rupees in
the second quarter, while expenses grew about 1%.
    "We are confident that the second half of the fiscal year
will show stronger performance compared to the first half," CEO
Warren Harris said.

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio
D'Souza)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))