India's Tata Technologies posts slightly higher second-quarter profit; expects double-digit FY growth

By Reuters News

Oct 14 (Reuters) - India's Tata Technologies TATE.NS 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 TATM.NS.

  • 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 7267.T 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)

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