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TATA TECHNOLOGIES

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ISIN

Face Value

Total Share

INE142M01017

₹10.00

4,18,06,975

Total Income

Profit A몭er Tax

Promoter Holding

₹2,425.74 Cr

₹239.18 Cr

72.48 %

EPS

P/E

P/B

₹57.21

94.39

11.30

Market Capitalisation

Book Value

Intrinsic Value

₹22,575.77 Cr

₹477.76

₹5,276.29

Earnings Yield

Sector

Sub­sector

1.06 %

Information Technolo…

IT Services & Consulti…

Category

Cashflow ­ Operations

Cashflow ­ Financing

Upcoming IPO

₹1,113.20 Cr

­₹44.38 Cr

TATA TECHNOLOGIES Growth


Portfolio

Compounded Sales Growth ­16.27%

Basket

1 Year

Compounded Profit Growth ­4.92% 1 Year

Return On Equity 11.97% 1 Year

Watchlist

­4.41% 3 Year

More

Pro Only

­2.20% 5 Year

Pro Only

­0.91% 3 Year

­9.01% 5 Year

Pro Only

16.54% 3 Year

24.86% 4 Year

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 so몭ware 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 roll­out; and information management, business intelligence, information integration, advanced analytics, and data visualization. In addition, it o몭ers 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

Warburg Pincus

Funding Amount

Date of Investment

$ 360 M

15 Jun 2017

Fund Name

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 US­based 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

TATA TECHNOLOGIES Business Model

INCAT International Plc. Tata Technologies Inc.

INCAT International PLC provides so몭ware

Tata Technologies de Mexico

solutions and associated services to

Cambric Limited, Bahamas

automotive, aerospace, and industrial

Tata Technologies SRL, Romania

manufacturers.

Tata

Tata Technologies Inc provides information

Manufacturing

Technologies

Consulting (Shanghai) Limited

technology products and services. The

Tata Technologies Europe Limited

Company o몭ers engineering, research and

Tata Technologies Nordics AB (formally

development, products to consumers and

known as Escenda Engineering AB upto 1

companies.

November, 2020)

Tata Technologies de Mexico is the

INCAT GmbH (in process of liquidation)

subsidiary of Tata Technologies which has

Tata Technologies (Thailand) Limited

helped them massively in extending their

Tata Technologies Pte Ltd.

business products and services in Mexico. Cambric Limited was formed in 1997. Cambric Limited holds the majority of


Cambric Limited holds the majority of the engineering so몭ware 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 so몭ware design, development, production, sales of self­manufactured products and supply a몭er­sales services. TATA Technologies Europe Ltd. provides technology products and services. The Company o몭ers 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 o몭ering product development services to clients operating on a global market. INCAT

GmbH,

automotive

a

UK­and

and

US­based

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


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 so몭ware.

TATA TECHNOLOGIES Revenue Segmentation

 Product revenue

 Other operating revenues  Service Revenue

TATA TECHNOLOGIES Product & Services

TATA TECHNOLOGIES Assets The company owns building worth

Information Technology Services

approximately INR 10 Cr.

Trading in computer hardware/so몭ware

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 so몭ware, 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), so몭ware 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 o몭shoring destination for IT companies across the world. Having proven its capabilities in delivering both on­shore and o몭­shore services to global clients, emerging technologies now o몭er 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 A몭airs and the National Critical Information Infrastructure Protection Centre are working on a new national strategy to strengthen the country’s cyber security amid allegations


are working on a new national strategy to strengthen the country’s cyber security amid allegations that Chinese intrusions may have a몭ected 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, all­in­one­personal 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 IT­enabled Services. In order to establish an enabling environment for the IT industry, in April 2021, the Development of Advanced Computing (C­DAC) launched three innovative technologies Automatic Parallelizing Compiler (CAPC), Cyber Security Operation Centre (CSoC) as a Service, and C­DAC’s indigenous High­ performance Computing so몭ware 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

TATA TECHNOLOGIES Shortcomings

services industry in India and has shown

The company faced a negative revenue

rapid growth in recent years. It is a

growth in FY21 which is due the disruptions

subsidiary of Tata group which gives it a

and hinderances caused by the pandemic as

brand value and also provides an edge over

a result of which they were unable to

its competitors.

increase their revenue over the previous


its competitors.

increase their revenue over the previous

The company has recently expanded into

year.

the embedded electronic vehicles and

The company's net profit has decreased in

digital domains and has seen a large gain in

FY'21 which is due to decreased revenues

the same, receiving orders worth $100

and constant expenses as a result of the

million (Rs 740 crore) in 2021. This will also

pandemic.

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 2019­20 to 10.0% in 2020­21 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 e몭iciency 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 Opportunities

TATA TECHNOLOGIES Threats The company has ongoing engagements

Focus on incremental capability building on

with new age OEMs, which could lead to

Digital ER&D, Digital manufacturing, Digital

uncertainty in their funding plans, future

customer experience and Digital enterprise

product roadmap, and change in ownership,

solutions would enable Tata Technologies to

thereby causing potential credit risk for the

expand its footprint through these o몭erings

company.


expand its footprint through these o몭erings

company.

in the new normal.

Due to increasing globalization and growing

Strengthening the value proposition and

currency

GTM approach by partnering with new

fluctuations have a substantial influence on

technology/solution providers.

the company’s operations and profitability

Tata Technologies has been investing in

Pandemic situation from infectious disease

strengthening its capability in the Education

has a substantial impact on global

sector over a period. With the recent deal

operations, as lockdowns can disrupt

win of INR 568 Cr. from Govt. of Karnataka to

manufacturing operations and impact

upgrade its 150 ITIs, the education vertical is

customers’ ability to invest and the

expected to be generate substantial revenue

company’s ability to manage operations and

for the organization. Tata Technologies is

ensure business continuity. With the second

actively engaging with several organizations

wave of COVID­19 impacting many countries

including some state governments in India

and high lead time for vaccinating the entire

to pursue more such opportunities.

world population, we are constantly preparing

volatility,

ourselves

exchange

for

any

rate

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


Registered In India last Updated 20/11/2021 Registered Date 22/08/1994 Planify Ticker TATATECH Reg O몭ice: Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune 411057, India Website: http://www.tatatechnologies.com

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