Oct 14 (Reuters) – India’s Tata Technologies posted a 3.6% rise in second-quarter profit on Wednesday, supported by growth in the engineering services firm’s mainstay services segment.
The Tata Group company expects to deliver strong double-digit revenue growth for the full year, CEO and MD Warren Harris said after the results.
• Profit after tax rose to 1.71 billion rupees ($17.97 million) for the quarter ended September 30, from 1.66 billion rupees a year earlier.
• Revenue from operations rose 28.4% to 16.99 billion rupees, while revenue from the services segment, which makes up nearly 80% of the total, increased about 34% from a year earlier.
• Tata Technologies provides engineering, product design and manufacturing consulting services to automotive, aerospace and industrial machinery clients including JLR and Tata Motors.
• The company is part of the Tata Group, which is at the centre of a dispute over control of holding company Tata Sons and whether it should go public.
• Revenue from the technology solutions segment rose 10.5%.
• The firm is likely to see better growth in its automotive business than its peers, largely due to steady spending from clients and the scaling up of a large project with a Japanese original equipment manufacturer, analysts at Ambit Capital said in a note.
• Earlier this month, Reuters exclusively reported that Honda Motor would tie up with Tata Technologies to develop cars for the Indian market, saving the Japanese automaker nearly 20% in costs.
($1 = 95.1500 Indian rupees)
(Reporting by Abhirami G in Bengaluru; Editing by Sonia Cheema)
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