Tata Technologies to share Q4 results on Friday, May 3; here's earnings preview

Tata Technologies Ltd on Friday informed stock exchanges that its board of directors will meet on Friday, May 3, 2024 to declare audited financial results for the March quarter and financial year ended March 31, 2024. Besides, the board of the Tata group firm would consider a dividend, if any, for the financial year. If announced, the dividend would be up for shareholder approval at Tata Technologies' forthcoming Annual General Meeting (Tata Technologies).

"We would like to inform you that pursuant to the SEBI (Prohibition of Insider Trading) Regulations 2015 and the Company's Code of Conduct for Regulating, Monitoring and Reporting of Trading by Insiders, the Company had intimated its Designated Persons that Trading Window shall remain closed from March 25, 2024, till the expiry of 48 hours from the date of said financial results are declared and disseminated to the stock exchanges," Tata Technologies said.

Kotak Institutional Equities in its preview note expects Tata Technologies to report 19.5 per cent YoY drop in net profit at Rs 174.40 crore on 7.3 per cent drop in sales at Rs 1,300 crore.

"We expect c/c revenue growth of 0.5 per cent QoQ for services segment and 0.7 per cent QoQ overall. Services segment revenue growth would be driven by ramp-up in anchor clients and aerospace vertical and partly offset by ramp-down at Vinfast. Within Technology solutions segment, Products business revenues would decline on qoq basis while ramp-up of new engagements in Education business would drive growth," Kotak said.

Kotak said Tata Technologies had multiple large engagements in March 2023 quarter and the revenues have moderated since, leading to sharp decline in revenues on YoY  basis.

"We expect EBIT margin decline of 40 bps qoq due to increased revenue contribution from low-margin Technology solutions segment and large deal ramp-ups in services. We expect focus on—(1) outlook on spends by anchor clients, (2) progress on engagements with Airbus and Air India, (3) commentary on engagement with Vinfast, (4) FY2025E revenue growth and profitability outlook and (5) ramp-up timelines of recent engagement with the state government of Telangana," it said.