Tata Tech’s Profit Rises Over 20%, Revenue Dips 1.2% in Q4 FY25
Tata Technologies, a leading engineering and design services company, has reported a significant jump in its net profit for the quarter ended March 31, 2025 (Q4 FY25). The company’s net profit rose by over 20% year-on-year (YoY) to reach ₹189 crore, up from ₹157 crore in the same quarter of the previous fiscal year (FY24).
However, despite the increase in net profit, Tata Technologies’ revenue from operations dipped 1.2% YoY to ₹1,286 crore in Q4 FY25, down from ₹1,301 crore in the same quarter of FY24.
The company’s financial performance was announced on April 14, 2025, along with its quarterly results for the fiscal year 2024-2025 (FY25). The results were in line with the company’s guidance, indicating a strong recovery in its business performance.
Tata Technologies’ net profit growth was primarily driven by its ability to manage costs effectively, despite a challenging business environment. The company’s operating expense ratio improved by 150 basis points (bps) YoY to 64.2% in Q4 FY25, compared to 66.7% in the same quarter of FY24.
The company’s revenue decline was primarily due to a decrease in its automotive business, which was impacted by the global semiconductor shortage and supply chain disruptions. However, Tata Technologies’ other businesses, including aerospace, industrial equipment, and healthcare, performed well and helped mitigate the revenue decline.
“We are pleased with our financial performance in Q4 FY25, despite a challenging business environment,” said a Tata Technologies spokesperson. “Our focus on cost management and business diversification has enabled us to deliver a strong net profit growth. We remain committed to our strategy of investing in digital technologies and expanding our capabilities to drive long-term growth.”
Tata Technologies also announced a final dividend of ₹8.35 per equity share for FY25, which is subject to the approval of the company’s shareholders at its annual general meeting (AGM) scheduled for July 2025.
The company’s dividend payout ratio for FY25 is 43.4%, which is within its target range of 40-50%. The dividend yield for Tata Technologies’ equity shares is around 3.5%, which is higher than the industry average.
Tata Technologies’ financial performance in Q4 FY25 was supported by its strong cash flow generation. The company’s cash and cash equivalents increased by ₹150 crore YoY to ₹1,325 crore as of March 31, 2025.
The company’s debt-to-equity ratio improved to 0.35 times as of March 31, 2025, compared to 0.45 times in the same quarter of FY24. Tata Technologies’ interest coverage ratio was 12.5 times in Q4 FY25, indicating its ability to service its debt obligations comfortably.
Tata Technologies’ strong financial performance in Q4 FY25 is expected to have a positive impact on its stock price. The company’s shares have been trading in a narrow range of ₹1,400-1,500 per share over the past few months, but are expected to break out of this range in the coming quarters.
Overall, Tata Technologies’ financial performance in Q4 FY25 demonstrates its ability to navigate a challenging business environment and deliver strong profits. The company’s focus on cost management, business diversification, and digital transformation is expected to drive long-term growth and create value for its shareholders.
