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RATING

RECOMMENDATION

Neutral

Business Type

Near Leader

Discover and get a complete analysis on Tata Technologies Pre IPO - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Tata Technologies Financial Statements.

ISIN

INE142M01017

Face Value

₹10.00

Total Share

4,18,06,975

Total Income

₹2,425.74 Cr

Profit After Tax

₹239.18 Cr

EPS

₹57.21

P/E

113.62

P/B

13.61

Market Capitalisation

₹27,174.53 Cr

Enterprise Value

₹26,657.33 Cr

Book Value

₹477.76

Intrinsic Value

₹5,276.29

Earnings Yield

0.88 %

Sector

Information Technology

Sub-sector

IT Services & Consulting

Category

Upcoming IPO

Cashflow - Operations

₹1,113.20 Cr

Cashflow - Financing

-₹44.38 Cr

TATA TECHNOLOGIES Growth

Compounded Sales Growth

  • -16.27%

    1 Year

  • -4.41%

    3 Year

  • -2.20%

    5 Year

Pro Only

Compounded Profit Growth

  • -4.92%

    1 Year

  • -0.91%

    3 Year

  • -9.01%

    5 Year

Pro Only

Return On Equity

  • 11.97%

    1 Year

  • 16.54%

    3 Year

  • 24.86%

    4 Year

Pro Only

About TATA TECHNOLOGIES

  • Tata Technologies Limited operates as an engineering and product development digital services company serving automotive, industrial machinery, aerospace, and industrial verticals in the Asia Pacific, Europe, and North America. 
  • Tata Technologies Limited provides aerospace PLM, automotive PLM construction and heavy machinery PLM, PLM software sales, enterprise solution group, training and support.
  • The company’s services also include integration and interfaces, production order management, performance management, facility monitoring and controls, inventory management, quality management, and error proofing; consulting and architecture, implementation, upgrade and release management, support, testing and validation, and training and roll-out; and information management, business intelligence, information integration, advanced analytics, and data visualization.
  • In addition, it offers consulting, application maintenance, and application development services; SAP solutions that include supply chain management, enterprise resource planning, customer experience management, business analytics, business process management, and technical services; and procurement, procurement business intelligence, category management, strategic sourcing, supplier base management, supplier quality, risk management, and product development services.
  • Tata Technologies Limited was formerly known as Tata Technologies (India) Limited and changed its name to Tata Technologies Limited in February 2001. The company was founded in 1981 and is based in Pune, India with subsidiaries in Stuttgart, Germany; Detroit, Michigan; Singapore; Bangkok, Thailand; Warwick, United Kingdom; Gothenburg, Sweden; Torreon, Mexico; Nassau, Bahamas; Braşov, Romania; and Shanghai, China. Tata Technologies Limited is a subsidiary of Tata Motors Limited.

  • TATA TECHNOLOGIES IPO Details

Presently, there is no news for any upcoming IPO of Tata Technologies Limited.

  • TATA TECHNOLOGIES Funding

Funded By Funding Amount Date of Investment Fund Name
Warburg Pincus $ 360 M 15 Jun 2017 Secondary Market - Tata Technologies
  • TATA TECHNOLOGIES Merger & Acquisition

Acquisition

  • Tata Technologies has acquired Escenda on May 8, 2017. Escenda, based in Sweden, is engaged in product engineering and design for the automotive sector globally.
  • Tata Technologies Ltd acquired Cambric Corporation, a US-based engineering services company from an unnamed private equity investor, for $32.5 million (Rs 176 crore) in April 2013 to strengthen its footprint globally, especially in Europe.
  • TATA TECHNOLOGIES Subsidiaries

  • INCAT International Plc.
  • Tata Technologies Inc.
  • Tata Technologies de Mexico
  • Cambric Limited, Bahamas
  • Tata Technologies SRL, Romania
  • Tata Manufacturing Technologies Consulting (Shanghai) Limited
  • Tata Technologies Europe Limited
  • Tata Technologies Nordics AB (formally known as Escenda Engineering AB upto 1 November, 2020)
  • INCAT GmbH (in process of liquidation)
  • Tata Technologies (Thailand) Limited
  • Tata Technologies Pte Ltd.

TATA TECHNOLOGIES Business Model

  • INCAT International PLC provides software solutions and associated services to automotive, aerospace, and industrial manufacturers.
  • Tata Technologies Inc provides information technology products and services. The Company offers engineering, research and development, products to consumers and companies.
  • Tata Technologies de Mexico is the subsidiary of Tata Technologies which has helped them massively in extending their business products and services in Mexico.
  • Cambric  Limited  was  formed  in  1997.  Cambric  Limited  holds  the  majority  of  the  engineering  software licenses that are used by the group. It wholly owns Tata Technologies SRL, Romania.
  • TATA TECHNOLOGIES SRL is located in BRASOV, Romania and is part of the Computer Systems Design and Related Services Industry.
  • Tata Manufacturing Technologies Consulting (Shanghai) Limited's main scopes of business include enterprise management consulting, business information consulting, manufacturing technology consulting, computer science engineering technology consulting; computer software design, development, production, sales of self-manufactured products and supply after-sales services.
  • TATA Technologies Europe Ltd. provides technology products and services. The Company offers engineering, designing, product life cycle management, enterprise solutions, manufacturing, and training.
  • Tata Technologies Nordics AB(Escenda) is in product engineering and design for the country's world leading automotive sector. Escenda creates value by offering product development services to clients operating on a global market.
  • INCAT GmbH, a UK-and US-based automotive and aerospaceputer engineering company, was established in 1989 and was acquired by Tata Technologies Inc in August 2005.
  • Tata Technologies (Thailand) Limited is the subsidiary of Tata Technologies which has helped them massively in extending their business products and services in Thailand.
  • Tata Technologies Pte Ltd was founded in 1981. The company's line of business includes the wholesale distribution of computers, computer peripheral equipment, and computer software.
  • TATA TECHNOLOGIES Revenue Segmentation

  • Product revenue
  • Other operating revenues
  • Service Revenue
  • TATA TECHNOLOGIES Product & Services

  • Information Technology Services 
  • Trading in computer hardware/software
  • TATA TECHNOLOGIES Assets

  • The company owns building worth approximately INR 10 Cr.
  • The company owns plant and machinery worth INR 20 Cr as well as computers worth INR 25 Cr approximately.
  • The company has invested INR 450 Cr in mutual funds in FY'21.
  • TATA TECHNOLOGIES Industry Overview

Industry Statistics

  • The information technology (IT) sector is comprised of companies that produce software, hardware or semiconductor equipment, or companies that provide internet or related services. In India, IT and ITES industry is divided into four major segments – IT services, business process management (BPM), software products and engineering services, and hardware.
  • As per a report by McKinsey & Company, the Indian tech industry is valued at US $194 billion in 2021 and has registered 7.5% growth rate over the last five years.
  • The growth of IT and services sector in India is attributable to low cost of operation and tax advantages, adoption of new technologies like cloud computing, artificial Intelligence, Big Data, and strong growth in export demand. On the other hand, growth of IT hardware industry is due to availability of technically skilled manpower, rapid introduction of IT technologies in major sectors such as telecom, BFSI etc and the introduction of favorable government initiatives like the 'Make in India' and 'Digital India' programs. 
  • The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science.
  • Regulations in Industry - The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 mandates a three tier grievance redressal system and more transparency regarding the content moderation process on social media platforms. The Information Technology Act, 2000 is the primary legislation in the country that governs all digital technology related matters. It covers the vast ambit of web content to privacy and more.
  • For the IT hardware industry, Ministry of Electronics & Information Technology (MeitY) has notified "Electronics and Information Technology Goods (Requirement for Compulsory Registration) Order, 2012" as per which no person shall manufacture or store for sale, import, sell or distribute goods which do not conform to the Indian Standard.
  • IT companies like Infosys, Tech Mahindra, Bharat Electronics, HCL Technologies, Mphasis, Cognizant etc are key competitors of the company.

Future Prospects

  • India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The industry is expected to grow to US$ 350 billion by 2025.
  • The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21.

Government Initiatives

  • India’s Ministry of Home Affairs and the National Critical Information Infrastructure Protection Centre are working on a new national strategy to strengthen the country’s cyber security amid allegations that Chinese intrusions may have affected operations at a key stock exchange and supply of electricity in Mumbai.
  • In Budget 2021, the government has allocated INR 53,108 Cr. to the IT sector.
  • The Government of India on February 24, 2021 announced approval of INR 7,325 Cr under the PLI (Production Linked Incentive) Schemes for IT hardware such as laptops, tablets, all-in-one-personal computers, servers etc.
  • Government of India launched programs like 'Make in India' and 'Digital India' have largely impacted the population in terms of increasing the adoption rate of technology and further increasing the number of users as well as increased the production of IT hardware within the country.
  • Department of Telecom, Government of India and Ministry of Communications, Government of Japan signed a MoU to enhance cooperation in areas of 5G technologies, telecom security and submarine optical fiber cable system.
  • In 2020, the government released “Simplified Other Service Provider” (OSP) guidelines to improve the ease of doing business in the IT Industry, Business Process Outsourcing (BPO) and IT-enabled Services.
  • In order to establish an enabling environment for the IT industry, in April 2021, the Development of Advanced Computing (C-DAC) launched three innovative technologies Automatic Parallelizing Compiler (CAPC), Cyber Security Operation Centre (CSoC) as a Service, and C-DAC’s indigenous High-performance Computing software solutions—Parallel Development Environment (ParaDE).

TATA TECHNOLOGIES Awards & Achievements

  • Tata Technologies recognized as an Emerging Industry Leader upon crossing the 550 score in TBEM assessment 2020.
  • It won Frost & Sullivan – Global Company of the Year 2020 award.
  • It won Innovista award– Creating a Culture of Innovation
  • The company won two awards at the Tata Motors’ Engineering Innovation contest - Imagineering 2.0.
  • The Company in association with a leading utility company in India won SAP ACE Award 2020.

TATA TECHNOLOGIES Strengths

  • The company is a market leader in IT and services industry in India and has shown rapid growth in recent years. It is a subsidiary of Tata group which gives it a brand value and also provides an edge over its competitors.
  • The company has recently expanded into the embedded electronic vehicles and digital domains and has seen a large gain in the same, receiving orders worth $100 million (Rs 740 crore) in 2021. This will also help the company to achieve a strong recovery in terms of higher revenue in future years.
  • Company’s debt equity ratio is 0.13 i.e. extremely low risk of bankruptcy. Company has negligible debt in FY'21 which is only in terms of lease liabilities hence the company is sustaining without any short or long term borrowings. This is highly beneficial for the company in terms of long term growth.
  • Net profit margin% of the company has been increased from 8.8% in 2019-20 to 10.0% in 2020-21 despite of lower profits and lower revenue from operations due to pandemic situation prevailing in the country. This shows that the company despite facing lower profits has increased it efficiency compared to previous year.
  • The company does not have dependency in India, they are focused on strengthening the outreach in geographies like Germany, Nordics, China and Vietnam as they are core to the automotive growth aspirations

TATA TECHNOLOGIES Shortcomings

  • The company faced a negative revenue growth in FY21 which is due the disruptions and hinderances caused by the pandemic as a result of which they were unable to increase their revenue over the previous year.
  • The company's net profit has decreased in FY'21 which is due to decreased revenues and constant expenses as a result of the pandemic.

TATA TECHNOLOGIES Opportunities

  • Focus on incremental capability building on Digital ER&D, Digital manufacturing, Digital customer experience and Digital enterprise solutions would enable Tata Technologies to expand its footprint through these offerings in the new normal.
  • Strengthening the value proposition and GTM approach by partnering with new technology/solution providers.
  • Tata Technologies has been investing in strengthening its capability in the Education sector over a period. With the recent deal win of INR 568 Cr. from Govt. of Karnataka to upgrade its 150 ITIs, the education vertical is expected to be generate substantial revenue for the organization. Tata Technologies is actively engaging with several organizations including some state governments in India to pursue more such opportunities.

TATA TECHNOLOGIES Threats

  • The company has ongoing engagements with new age OEMs, which could lead to uncertainty in their funding plans, future product roadmap, and change in ownership, thereby causing potential credit risk for the company.
  • Due to increasing globalization and growing currency volatility, exchange rate fluctuations have a substantial influence on the company’s operations and profitability
  • Pandemic situation from infectious disease has a substantial impact on global operations, as lockdowns can disrupt manufacturing operations and impact customers’ ability to invest and the company’s ability to manage operations and ensure business continuity. With the second wave of COVID-19 impacting many countries and high lead time for vaccinating the entire world population, we are constantly preparing ourselves for any future eventuality.
  • Due to the rapid growth in the IT and services sector, a number of competitors are moving into the industry and pose the threat of market share dilution for the company in the long run.

TATA TECHNOLOGIES Rating

  • RECOMMENDATION

    Neutral

  • TATA TECHNOLOGIES Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

20/11/2021

Registered Date

22/08/1994

Planify Ticker

TATATECH

Reg Office: Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune 411057, India

Website: http://www.tatatechnologies.com