Tata Technologies shares drop over 5% on disappointing Q4 results

Shares of Tata Technologies Ltd slumped early 5% on Monday, May 6, following weak earnings reports for the quarter ended March 31, 2024.

Tata Technologies shares opened lower at ₹1,042 apiece compared to its previous close of ₹1,086.8 apiece and further tanked as much as 4.97% to hit an intraday low of ₹1,032.7 per piece on the NSE.

The slide in share price of the Tata group company was seen after the release of its earnings report for the quarter and financial year ending March 2024, on Friday, May 3.

The company’s net profit for the March quarter decreased to ₹157.2 crore from ₹170.2 crore in Q3FY24.

The tech solutions provider also reported a sluggish revenue growth quarter-on-quarter.

In Q4FY24, revenue stood at ₹1,301 crore, 0.9% higher compared to ₹1,289.5 crore in Q3FY24. Revenue from the services segment, however, saw a slight decline of 0.6% quarter-on-quarter at ₹995.1 crore compared to ₹ 1,001.2 crore in Q3FY24.

Tata Technologies also proposed a final dividend of ₹8.40 alongside a special dividend of ₹1.65 per equity share of ₹2 each for the financial year 2023-24, pending approval at the Annual General Meeting.

Tata Technologies is a subsidiary of Tata Motors Limited.

Earlier, in April, Tata Technologies announced a collaboration with German luxury carmaker, BMW Group. Together, both the companies unveiled plans to create a joint venture aimed at establishing an automotive software and IT development hub across Pune, Bengaluru and Chennai.

In a stock exchange filing Tata Technologies informed that the joint venture will focus on strategic software development, including solutions for software-defined vehicles (SDV). In the automotive software segment, priority will be given to automated driving, infotainment and digital services.

Shares of Tata Technologies closed 3.80% lower at ₹1,045.50 apiece on the NSE.