Tata Technologies Q3 results: Net profit falls marginally to Rs 169 crore

India's Tata Technologies reported a bigger-than-expected third-quarter profit, aided by improved demand in its services and technology segments.

Tata Technologies provides engineering and technology services to automobile, aero and heavy machinery makers.

Consolidated profit after tax fell marginally to Rs 169 crore ($19.52 million) in the October-December quarter, from Rs 170 crore a year ago.

Analysts, on average, expected a profit of Rs 161 crore, as per data compiled by LSEG.

Its services segment revenue - which contributes over 78 per cent to the total - grew 1 per cent, while the smaller technology solutions segment grew 6 per cent.  ALSO READ: UCO Bank's Q3FY25 results: Net profit rises 27% on better margins

 

Engineering, research and design (ER&D) services, which include technology support to industries such as transportation and communications, contribute a sixth of the revenue to India's $254 billion technology sector.

Companies such as Tata Technologies and Tata Elxsi are expected to benefit from the ER&D sector quadrupling to as much as $170 billion between 2023 and 2030, India's National Association of Software and Service Companies said.

Tata Technologies' revenue rose 2 per cent to Rs 1,317 crore in the third quarter, slightly ahead of analysts' estimate of Rs 1,311 crore.

However, total expenses rose 7 per cent as the company spent more on technology upgrades.

Shares of the company closed 0.5 per cent higher ahead of results.