Tata Technologies Limited: In Depth Analysis
I. About Business:
Tata Technologies IPO is coming up, a key player in the global engineering services sector, operates as a subsidiary of Tata Motors Limited. With a focus on product development and digital solutions, Tata Technologies serves global original equipment manufacturers (OEMs) and their Tier 1 suppliers. This report delves into the financial and operational aspects of the company as of September 30, 2023.
II. Revenue Breakdown:
III. Business Segmentation:
The company categorizes its operations into two main lines: Services and Technology Solutions. This diversification enables Tata Technologies to offer a comprehensive suite of services to its clients.
|Providing engineering services to global manufacturing clients, covering conception, design, development, and delivery of products.
|Assisting clients in synchronizing people and processes across the company for optimal product lifecycle realization.
|Offering services from offshore development centers for the design and development of components, subsystems, and systems.
|Specialized in the development of embedded systems for various applications.
|Full Vehicle Turnkey
|Delivering complex engineering programs and domain services, including full turnkey projects such as electric vehicles (EVs).
|Electric Vehicle Modular Platform (eVMP)
|An accelerator enabling the creation of scalable and flexible vehicle platforms for OEMs, including new energy vehicle companies. Reduces NPI cycle time and accelerates launch timelines.
|Proprietary connected vehicle cloud platform developed in 2020. Offers solutions across the automotive continuum, including safety, vehicle management, remote applications, fleet management, navigation, and entertainment.
IV. Client Engagement and Relationship:
Tata Technologies has established itself as a reliable partner, evident in its long-standing engagements with key clients, including Tata Motors Limited and Jaguar Land Rover (JLR). The strength of client relationships is reflected in the Net Promoter Score (NPS), positioning the company among the top 20 percentile of technology services players.
Furthermore, the repeat rate for Fiscal 2023 stands at an impressive 98.38%, emphasizing the company's ability to retain clients. The six-month repeat rate, ending September 30, 2023, is 97.72%, showcasing sustained client satisfaction and loyalty.
V. Employee Landscape:
As of September 30, 2023, Tata Technologies employs 12,451 individuals, consisting of 11,608 full-time employees (FTEs) and 843 contracted employees. The attrition rate for the period is 17.2%, suggesting a stable and motivated workforce.
VI. Global Delivery Centres:
The company operates 19 global delivery centres across North America, Europe, and the Asia Pacific. These centres, staffed predominantly by local nationals, facilitate uninterrupted service delivery and enable the company to tap into specialized skill sets in different regions.
VII. Financial Performance:
While specific financial figures are not provided, the robustness of Tata Technologies' operations is inferred from its significant client base, diversified revenue streams, and strong client retention rates.
Tata Technologies Limited's financial and operational structure underscores its resilience and adaptability in the competitive engineering services landscape. The company's strategic approach, diverse service offerings, and global presence contribute to its sustained success in serving automotive and related industries.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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