Major engineering services provider Tata Technologies announced today its Q1 FY2025 performance figures as well as the acquisition of a significant contract to design and produce batteries for a worldwide EV battery manufacturer. Though it remained silent about the identity of this most recent client, Tata Technologies had previously worked with Agratas, the cell manufacturing company of the Tata Group, back in January.
In addition, Tata Technologies announced that its overall operational revenue for the most recent quarter was Rs 1,269 crore, representing an increase of 0.9 percent year over year but a decrease of 2.5 percent quarter over quarter (QoQ). Conversely, the revenue from its services division decreased by 1% to Rs 985 crore.
In Q1 FY25, the company’s operating EBITDA was recorded at Rs 231 crore, and its EBITDA margin was 18.2%, which was marginally less than the 18.4% recorded in the prior quarter. With Rs 162 crore in net income, the quarterly increase was 3.1%.
“The overall market conditions remain favourable as the manufacturing sector continues to future-proof itself through ongoing investments in alternative propulsion systems, software-defined products and services, and smart manufacturing,” states Warren Harris, Chief Executive Officer and Managing Director of Tata Technologies. Now that the VinFast transformation is mostly behind us, we firmly anticipate that our services business’s sequential revenue growth will pick up speed starting in the current quarter.”
Additionally, a major CV manufacturer in North America has awarded Tata Technologies a contract to develop end-to-end cabin designs and closures. Additionally, the firm and a European Tier-1 aerospace company have inked a multi-year engagement contract for the development of business and first-class aircraft seats in the aerospace area.
“We are optimistic about our full-year prospects due to our strong order book, ongoing positive momentum in our Anchor accounts, and anticipated tailwinds in the automotive, aerospace, and industrial heavy machinery industries,” Harris stated in a press release.
Tata Technologies has also been chosen by a premium car OEM in Europe to create a cloud-based, all-encompassing virtual platform environment for next SoC and MCU hardware designs. Tata Technologies is encouraged by these five key victories in the automotive and aerospace industries.
Tata Technologies has been engaged in two VinFast EV projects. Harris stated during the company’s Q3 FY24 earnings announcements that VinFast’s focus is shifting from creating new products to manufacturing and marketing automobiles. Our efforts are now shifting to launch support since we have nearly finished developing the two electric vehicles that were turned over to Tata Technologies on a turnkey basis. This change started in the second quarter, picked up speed in the third, and is expected to be mostly finished by the current quarter (Q4 FY2024).”
In addition to winning a recent competition for battery design, Tata Technologies announces that it has been chosen as an SDV partner for the development of middleware stack by a top commercial vehicle (CV) OEM. According to the business, this strategic engagement
