Tata Technologies' stock is up 15% as a result of their increased third-quarter net earnings

Tata Technologies' stock is up 15% as a result of their increased third-quarter net earnings

Tata Technologies' stock is up 15% as a result of their increased third-quarter net earnings

For the quarter that ended in December of FY24, Tata Technologies reported a 14.7% year-over-year increase in consolidated profit of Rs 170.22 crore.

Following their November 30 offering at Rs. 1200, Tata Tech shares have dropped by around 12.5%.

After the multinational engineering services business announced a 14.7% year-over-year increase in consolidated earnings at Rs 170.22 crore for the quarter ended December 2023, shares of Tata Technologies increased 1.6% in early trading on January 19.

In addition, operating revenue increased 14.7% to Rs 1,289.5 crore over the same time last year.

The company's shares recently trading at Rs 1,145.95 on the NSE as of 9.45 am, 0.12% higher than the closing price from the previous session.

The overall operational revenues climbed 13.4% year over year to $154.8 million in US dollars. The services segment's sales climbed by 5.8 percent in constant currency and by 8.3 percent on an annual basis to $120.2 million.

The firm is benefiting from robust demand from key customers (including Tata Motors and JLR) and other EV initiatives, according to a report from brokerage JM Financial. Tata Tech closed five significant agreements during the quarter, including two that totaled $25 million and more than $50 million, increasing its profile. Reiterating its buy call, the brokerage set a target price per share of Rs 1,370.

The management of the firm also said that FY20 development should be further stimulated by the aerospace sector, which is headed by Airbus. In spite of short-term challenges brought on by the collapse of the VinFast project, management anticipates robust growth in FY2015. The firm plans to increase its margin by 200–250 basis points in the next quarter.

When Tata Tech shares were launched on November 30 at Rs 1,200, they had lost almost 12.5% of their value. The stock was offered at a price 14% more than the Rs 500 share issuance price.