Q3 results today: Tata Technologies among 31 companies to announce earnings on Tuesday

The third quarter earnings season is underway and about 31 companies will announce their results on Tuesday. Key results to watch out include from Tata Technologies, ICICI Prudential Life and Indiamart.

Apart from the above, companies like UCO Bank, Tanla Platforms, Rossari Biotech, PNB Housing Finance, Cyient DLM, Aditya Birla Real Estate and a few others will also declare their quarter results.

Tata Technologies Q3 expectations

The company likely had a subdued quarter with flattish revenues and expected decline in the bottomline.

JM Financial estimates the revenues to rise by a marginal 0.3% year-on-year (YoY) to Rs 1,301 crore, while another brokerage Kotak Equities sees the same to grow by 0.2% YoY to Rs 1,292 crore.

Net profit for the quarter is likely to fall nearly 8% YoY in the October-December 2024 period to Rs 157 crore, according to Kotak estimates.

The brokerage sees constant currency revenue growth of 0.1% quarter-on-quarter (QoQ) for the services segment. Services segment revenue growth would be impacted by general weakness in auto and moderation in spends at anchor clients.

Technology solutions segment, on the other hand, would remain stable (QoQ) with sharp uptick in products, offset by decline in education businesses.

Operating profit for the quarter, as measured by EBITDA, would also fall both on a YoY and sequential basis to Rs 223 crore.

Analysts also expect EBIT margin decline of 80 bps (QoQ) due to the wage hike impact.

The focus for investors will be on medium-term outlook on spends by anchor clients and Tata group entities, ramp-up in Airbus engagements and any impact of lower aircraft deliveries at Airbus, details on BMW JV and outlook of the technology solutions segment.

In the preceding September quarter, Tata Technologies reported a 2% decline in its consolidated net profit at Rs 157 crore. The same stood at Rs 160 crore in the last-year quarter. Revenue from operations in the reporting quarter increased 2% year-on-year to Rs 1,296 crore.

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