Analyzing Tata Tech’s 5% Stock Decline Amid Q4 Results: Is Now the Ideal Time to Invest? (TT)

  • Tata Technologies share price fell by 5% following the company’s Q4 results, which showed a decline in consolidated net profit compared to the same period last year.
  • The company’s consolidated revenue from operations also decreased by 7.22% YoY.
  • Despite these results, Tata Tech’s CEO, Warren Harris, highlighted the company’s growth in operating revenue and EBITDA over the past three years.

Tata Technologies’ share price takes a hit after Q4 results, but the company remains optimistic about future growth. This article delves into the details of the financial report and what it means for investors.

Details of Tata Technologies’ Q4 Results

Tata Technologies reported a consolidated net profit of ₹157.24 crore for the quarter ending March 31, 2024. This represents a 27% decline from the ₹216.56 crore reported in the same period last year. The company’s share price opened at ₹1,044.95 on the BSE, and touched an intraday low of ₹1,032.95 and an intraday high of ₹1,055.05. The profit after tax (PAT) also showed an almost 8% quarterly decline compared to the ₹170.22 crore recorded in Q3FY24.

Revenue and Dividend Announcement

The company’s consolidated revenue from operations for the quarter under review was ₹1,301.05 crore, down 7.22% YoY from the ₹1,402.39 crore recorded during the same period last year. However, the PAT for the entire fiscal year was recorded at ₹679.37 crore, a slight increase compared to ₹624.03 crore in FY23. The board recommended a special dividend of ₹1.65 per equity share and a final dividend of ₹8.40 per equity share, subject to shareholder approval at the AGM.

CEO’s Statement and Future Outlook

Warren Harris, the Chief Executive Officer and Managing Director of Tata Tech, stated that the company’s operating revenue has increased at a rate of 29% CAGR over the past three years, while operating EBITDA has increased at a rate of 35% CAGR. In FY24, the business signed twelve significant agreements, indicating a strong transaction pipeline. Brokerage firm JM Financial rates the stock as a “buy,” estimating a potential upside of 29.7% with a target price of ₹1,410.

Conclusion

Despite the decline in Tata Technologies’ share price following the Q4 results, the company’s leadership remains optimistic about its growth prospects. With a strong transaction pipeline and positive ratings from brokerage firms, the company’s future outlook appears promising.

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