Tata Technologies - Investor Presentation Q1 FY 2024-25
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The Tata Technologies investor deck provides an overview of the company's strategic vision, financial performance, and growth prospects. It introduces the company’s mission, values, and core business segments, highlighting its competitive edge and market position. Financial performance is detailed with key metrics like revenue growth and profitability. The deck outlines strategic initiatives for innovation and market expansion, recent operational achievements, and key client partnerships. Future growth projections and investment opportunities are discussed, emphasizing the company's potential. Additionally, it highlights Tata Technologies' commitment to sustainability and corporate social responsibility, offering potential investors a clear understanding of the company's business model and future prospects.
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Tata Technologies - Investor Presentation Q1 FY 2024-25
- 1. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Investor presentation Q1 FY2025 18th July 2024 Scrip: BSE 544028, NSE: TATATECH 1
- 2. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Disclaimer 2 This release may include opinions and assumptions about future performance which could be considered forward-looking statements. Forward-looking statements intrinsically cover several risks and uncertainties, which may lead to a material difference between actual results and the statements themselves. Such statements comprise the company’s current visibility on market movements, client discussions, and related factors. Tata Technologies Limited does not assume an obligation to update or revise any forward-looking statements.
- 3. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Leading global engineering services company 85% Automotive revenue(3) 12,505 Employees(4) #1 India-based, Global Automotive ER&D ESP(1) in Zinnov Zones since 2019 (2) 12.8% Q1’FY25 PAT margin 0.9% YoY growth in INR revenue from operations(5) Among Top 2 Global Engineering Service Providers in Electrification(2) INR 12.7 bn $152.1 mn (6) Q1’FY25 Revenue from Operations 18.2% Q1’FY25 Operating EBITDA(7) margin Pureplay ER&D and Digital Solutions Specialist Note: (1) ER&D Service Provider; (2) Source: Zinnov; (3) % of automotive revenue attributable to the Services segment for Q1FY25 period; (4) FTE and contracted employees as of June 30 2024 (5) Q1’25 over Q1’24; (6) Revenue from operations where the revenue from operations is accounted for on a monthly basis and converted using the average of the $ conversion rates during each month for the relevant currencies; (7) Operating EBITDA is calculated as EBITDA less other income. Customer NPS 58 Among the Top 20 percentile of Tech services providers
- 4. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Q1’25 Financial highlights • Total operating revenue at ₹12,690 million, up 0.9% YoY and down 2.5% QoQ. In USD, total operating revenue at $152.1 million • Services segment revenue of ₹9,855 million, a decline of 0.6% YoY and 1.0% QoQ. In USD, Services segment revenues came in at $118.1 million; down 1.3% QoQ in constant currency • Total company gross margin at 28.2%, vs. 28.3% QoQ • Services segment gross margin at 31.1% vs. 31.4% QoQ • Operating EBITDA at ₹2,311 million; EBITDA margin at 18.2%, vs. 18.4% QoQ • Net income at ₹1,620 million, up 3.1% QoQ. Net income margin at 12.8%, vs. 12.1% QoQ 4 Revenue Profitability • Five strategic deal wins across Automotive and Aerospace.
- 5. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 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. The VinFast transition is now largely behind us, and we fully expect the sequential revenue growth of our services business to accelerate from the current quarter. Confidence in our full-year prospects is fuelled by our order book, continued positive momentum within our Anchor accounts, and tailwinds that we expect to continue to intersect with across automotive, aerospace, and industrial heavy machinery. Message from the CEO & MD and the CFO Our margins have remained resilient during the quarter, reflecting our strong operating discipline. We are committed to strategically investing in key growth areas while optimising costs and improving efficiency across the organisation. Our robust cash flow management and efficient collections process remain priorities. By focusing on sustainable growth and value creation, we are confident in our ability to stay competitive and achieve long-term success. 5 Warren Harris CEO and MD Savitha Balachandran CFO
- 6. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Strategic wins and new developments 6 Tata Technologies has signed a multi-year engagement with a European Tier One aerospace company to develop business and first-class aircraft seats. Tata Technologies has won an engagement with a leading North American commercial vehicle manufacturer to develop end-to-end cabin design and closures. Tata Technologies has been selected by a leading commercial vehicle OEM as their SDV technology partner for the development of a middleware stack. This strategic engagement will focus on building the foundational elements of the SDV framework, from concept to production. A European luxury Automotive OEM has selected Tata Technologies for developing a cloud-based holistic virtual platform environment for future SoC / MCU Hardware architectures. A global EV battery manufacturer has selected Tata Technologies to deliver the first battery design and development program for a client’s EV engagement.
- 7. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Financial & operational data
- 8. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Income statement - consolidated IND AS INR Mn Q1’FY24 Q4’FY24 Q1’FY25 QoQ YoY Revenue from operations 12,575 13,010 12,690 (2.5%) 0.9% Services segment 9,911 9,951 9,855 (1.0%) (0.6%) Technology solutions segment 2,664 3,060 2,835 (7.4%) 6.4% Gross profit 3,769 3,680 3,581 (2.7%) (5.0%) Services segment 3,280 3,123 3,066 (1.8%) (6.5%) Technology solutions segment 489 557 515 (7.6%) 5.2% Operating EBITDA 2,505 2,400 2,311 (3.7%) (7.7%) EBIT 2,269 2,110 2,014 (4.6%) (11.2%) PBT 2,530 2,308 2,196 (4.8%) (13.2%) Net income 1,915 1,572 1,620 3.1% (15.4%) EPS (diluted) 4.71 3.87 3.99 3.0% (15.3%) 8 Margins (%) Gross margin 30.0% 28.3% 28.2% Service segment 33.1% 31.4% 31.1% Technology solutions segment 18.4% 18.2% 18.2% Operating EBITDA margin 19.9% 18.4% 18.2% EBIT margin 18.0% 16.2% 15.9% Net income margin 15.2% 12.1% 12.8% USD Mn Q1 FY24 Q4 FY24 Q1 FY25 QoQ YoY In constant currency QoQ YoY Revenue from operations 153.1 156.6 152.1 (2.9%) (0.7%) (2.5%) (0.2%) Service segment 120.7 120.2 118.1 (1.8%) (2.1%) (1.3%) (1.9%)
- 9. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Q1’25 Key metrics Employee metrics Q1’ 24 Q4’ 24 Q1’ 25 DSO : Billed + Unbilled (days) 96 83 84 Cash and cash equivalent ($ Mn) (1) 141.0 146.3 131.4(3) FCF (2) 2,246 2,124 2,217 Liquidity metrics 1) As on last day of the respective reporting period. Excludes restricted cash, if any 2) FCF computed as Adj. EBITDA (-) Net Capital Expenditure 3) This is after ~$49 million in dividends paid out in Q1 FY25 Q1’ 24 Q4’ 24 Q1’ 25 Headcount 11,833 12,688 12,505 Voluntary attrition, LTM 18.7% 14.5% 13.7% Headcount includes FTEs and contractors Services: Customer pyramid (LTM) Q1’ 24 Q4’ 24 Q1’ 25 > 50 Mn 3 3 2 10-50 Mn 3 5 6 5-10 Mn 3 3 3 1-5 Mn 27 30 29 9
- 10. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 10 12,575 13,010 12,690 Q1 FY24 Q4 FY24 Q1 FY25 INR Million Revenue from operations 0.9% YoY; -2.5% QoQ 153.1 156.6 152.1 Q1 FY24 Q4 FY24 Q1 FY25 USD Million Revenue from operations -0.7% YoY; -2.9% QoQ 9,911 9,951 9,855 Q1 FY24 Q4 FY24 Q1 FY25 INR Million Revenue from services segment -0.6% YoY; -1.0% QoQ 120.7 120.2 118.1 Q1 FY24 Q4 FY24 Q1 FY25 USD Million Revenue from services segment -2.1% YoY; -1.8% QoQ Q1’25 Financial highlights
- 11. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 11 Q1’25 Financial highlights 30.0% 28.3% 28.2% Q1 FY24 Q4 FY24 Q1 FY25 Gross margin % 33.1% 31.4% 31.1% Q1 FY24 Q4 FY24 Q1 FY25 Gross margin: services segment 19.9% 18.4% 18.2% Q1 FY24 Q4 FY24 Q1 FY25 Operating EBITDA margin 18.0% 16.2% 15.9% Q1 FY24 Q4 FY24 Q1 FY25 EBIT margin
- 12. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Q1’25 Financial highlights Offshore revenue represents Services revenue delivered from India & Romania and sourced outside India & Romania 12 36.2% 37.7% 39.0% 63.8% 62.3% 61.0% Q1'24 Q4' 24 Q1' 25 Revenue mix Offshore % Onshore % 79% 76% 78% 21% 24% 22% Q1 FY24 Q4 FY24 Q1 FY25 % of Operating revenue Services Segment Technology Solutions Segment 89% 86% 85% 11% 14% 15% Q1 FY24 Q4 FY24 Q1 FY25 % of Services segment revenue Auto Non-Auto
- 13. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Innovating solutions for customers and engineering better careers
- 14. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 14 Accelerating digital transformation for Mitsubishi India Tata Technologies accelerates Mitsubishi Electric India’s digital transformation journey with SAP S4/Hana implementation, delivering enhanced operational efficiency. The seamless implementation enabled end-to-end visibility and enhanced operational efficiency by approx. 15%.
- 15. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 15 Innovate solutions for a better world with InnoVent 2.0 Tata Technologies, in collaboration with Microsoft and Tata Motors, has launched the second edition of the InnoVent hackathon, focusing on Generative AI. This initiative aims to leverage Generative AI to innovate solutions across the product value chain. The hackathon offers 3rd and 4th-year engineering students in India a chance to showcase creativity and develop solutions using Generative AI to transform product engineering, manufacturing, and customer experience.
- 16. © Copyright 2023 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Engineering connected vehicle solutions with Arm and COVESA Tata Technologies joined the Connected Vehicle System Alliance (COVESA) consortium to innovate connected, autonomous and software-defined vehicle solutions. Tata Technologies partners with Arm to drive innovation in developing software-defined vehicles (SDVs). With this collaboration, we aim to accelerate the development timelines of high-performance vehicle computing systems.
- 17. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. About Tata Technologies 17 Tata Technologies (BSE: 544028, NSE: TATATECH) is a global product engineering and digital services company focused on fulfilling our mission of helping the world drive, fly, build, and farm by enabling our customers to realize better products and deliver better experiences. We are the strategic engineering partner businesses turn to when they aspire to be better. Manufacturing companies rely on us to enable them to conceptualize, develop and realize better products that are safer, cleaner, and improve the quality of life for all the stakeholders, helping us achieve our vision of #EngineeringABetterWorld. For more, visit us at https://www.tatatechnologies.com/ or learn more here. Follow us on Instagram, LinkedIn, Twitter, Facebook and YouTube for the latest updates.
- 18. © Copyright 2024 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. Contact Us 18 Email: ir@tatatechnologies.com Desk Phone: +91 20 66529090 Name: Vijay Lohia For investor queries Email: priyanka.bhatia@adfactorspr.com Desk Phone: +91 22 67574444 Name: Priyanka Bhatia For media queries
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