TATA TECHNOLOGIES LIMITED UNLISTED SHARE
TATA TECHNOLOGIES LIMITED (TTL) is a global engineering and product development digital services company enabling its manufacturing clients to build better products and drive efficiencies in their businesses, leading to the development of products that are better for the end customer, environment, and society at large. It is a subsidiary of Tata Motors Limited. The company provides services in engineering and design, product life cycle management, product development, and IT service management. The Company has adopted various globally recognized standards to establish its enterprise-level quality management System(QMS) and Information Security Management System (ISMS).
Tata Technologies Limited was first founded as a business unit of Tata Motors Limited in 1989. Later in 1994, Tata technologies Limited became an independent business unit.
The clients of Tata Technologies Limited are from the automotive, industrial heavy machinery, and aerospace sectors. Tata Technologies Limited has 17 global delivery centers spread across three continents which are North America, Europe, and the Asia Pacific. The company has over 8600 employees.
The Company has been ranked in the Leadership Zone of 2019 Global ER&D Services Zinnov Zones and its ranking has improved across almost all the Verticals and Horizontals where it competes in the marketplace. The Company is now positioned as first amongst all India-based Global ESPs in the Automotive ER&D Services Vertical and the analyst community has recognized the breadth and depth of its offerings across automotive ER&D services, including the work that the Company is doing in the design and development of EVs and Platforms. The Company is also ranked in the Leadership zone of the Construction & Heavy MachineryER&D services vertical through its capabilities around frugal engineering and vehicle design programs that it is doing for prominent OEMs. The Company is also ranked in the Leadership Zone in the Aerospace ER&D services vertical.
INCORPORATION DETAILS
CIN | U72200PN1994PLC013313 |
Registration Date | 22 August 1994 |
Category / Sub-Category of the Company | Public Company |
Address of the Registered office and contact details | Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune 411057, India. Tel: 020 66529090 Email: investor@tatatechnologies.com |
Name, Address and Contact details of Registrar and Transfer Agent, if any | TSR Darashaw Consultants Private Limited 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Nr. Famous Studio, Mahalaxmi, Mumbai - 400011 Tel : 91 22 66568484 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Information Technology Services | 721 | 85.34% |
Trading in computer hardware/software | 721 | 14.66% |
BOARD OF DIRECTORS
Mr. Subramanian Ramadorai (Chairman)
Mr. Warren Harris (CEO & Managing Director)
Mr. Ajoyendra Mukherjee
Mr. Guenter Butschek
Mr. Pathamadai Balachandran Balaji
PARTICULARS OF SUBSIDIARY AND ASSOCIATECOMPANIES
Name of the Company | Holding/Subsidiary/Associate | % of shares held |
Tata Technologies Private Limited | Subsidiary | 100% |
Tata Technologies (Thailand) Limited | Subsidiary | 100% |
Tata Technologies Europe Limited | Subsidiary | 100% |
Tata TechnologiesNordics AB | Subsidiary | 100% |
INCAT International Plc. | Subsidiary | 100% |
INCAT GmbH (under liquidation) | Subsidiary | 100% |
Tata Technologies Incorporated | Subsidiary | 99.8% |
Cambric Limited | Subsidiary | 99.8% |
Tata Technologies SRL, Romania | Subsidiary | 99.8% |
Tata Manufacturing Technologies (Shanghai) Company Limited | Subsidiary | 100% |
Tata HAL Technologies Limited | Associate | 50% |
SHAREHOLDING PATTERN
(As of 31-03-2021)
SHAREHOLDER’S NAME | NO. OF SHARES | % OF TOTAL SHARES OF THE COMPANY |
Tata Motors Limited (Promoter) | 3,03,00,600 | 72.48% |
Alpha TC Holdings Private Limited | 37,46,505 | 8.96% |
Ratan Naval Tata | 1,00,000 | 0.24% |
Others | 76,59,870 | 18.32% |
Total | 4,18,06,975 | 100.00% |
INDUSTRY OUTLOOK
FY 2021 has been an unprecedented year for the Technology industry which experienced more disruption in one year than it has over the last 10 years. COVID-19 has been a key trigger for digital transformation driving organizations to undertake major transformation initiatives for improving resilience, increasing agility, and delivering greater efficiencies in the New Normal. The year witnessed significant investments in Digital First and Digital Everywhere solutions to comply with social distancing norms and offer virtual customer experience and ensure contactless engineering, manufacturing, and operations. OEMs have focused on ensuring operations through leveraging digital technologies and productivity tools to work remotely, thereby increasing the level of automation, cloud investments, remote diagnostics tools, and preventive maintenance.
Zinnov, a global consulting and advisory firm, has projected that the Global Engineering R&D (ER&D) market is expected to grow at a CAGR of 11% from 2020 to 2023 to reach USD 1.9 trillion. Despite the impact of COVID-19 on the industry, digital engineering continues to be the key factor driving ER&D spending, as enterprises across verticals are increasingly prioritizing their R&D efforts towards developing new-age digital products and services to attain resilience in the marketplace. The rapid adoption of intelligent, connected, contactless, and smart initiatives, such as digital thread, digital engineering, intelligent workplaces, contactless operations, leveraging new-age technologies such as IoT, Artificial intelligence, augmented reality/virtual reality (AR/VR) and digital twins are expected to spur ER&D spends across verticals.North America dominates the global ER&D spend with 9% growth and a market size of USD 833 billion due to the presence of tech giants in the territory, while the Asia Pacific and Europe markets are expected to grow at CAGRs of 6% and 5%, respectively as per the ZinnovZones 2020 – Global ER&D Service Report. The Asia-Pacific region is poised to overshadow Western Europe in terms of ER&D spending by 2025, due to factors such as investments from China.
India’s share in the global ER&D market is expected to grow at a CAGR of 12% and reach US$ 63 billion by 2025 from US$ 31 in 2019. From a Product Engineering perspective, Body engineering is the most outsourced area from OEMs to ESPs.
PROFIT & LOSS STATEMENT OF TATA TECHNOLOGIES LIMITED(In Rs. Crores)
PARTICULARS | 2021 | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 2,380.91 | 2,852.05 | 2,942.21 | 2,691.48 | 2,801.95 |
EBITDA | 385.71 | 470.44 | 504.86 | 335.32 | 496.65 |
EBITDA margin | 16.20% | 16.49% | 17.16% | 12.46% | 17.73% |
Finance Cost | 17.66 | 15.63 | 1.29 | 4.7 | 4.31 |
Depreciation | 92.2 | 99.15 | 68.64 | 71.43 | 62.84 |
Other Income | 44.83 | 44.89 | 42.23 | 85.67 | 30.37 |
Profit Before Exceptional items, Share of profit from joint venture and Tax | 320.68 | 400.55 | 477.16 | 344.86 | 459.87 |
Exceptional items | -5.41 | -8.58 | -6.22 | -8.33 | -8.25 |
Share of profit of joint venture | 0 | 0 | 0 | 0 | -1.46 |
Total Tax | 76.09 | 140.42 | 118.34 | 90.72 | 99.18 |
Profit After Tax (PAT) | 239.18 | 251.55 | 352.6 | 245.81 | 350.98 |
PAT margin | 9.86% | 8.68% | 11.81% | 8.85% | 12.39% |
EPS | 57.21 | 59.78 | 83.77 | 58.39 | 83.37 |
BALANCE SHEET OF TATA TECHNOLOGIES LIMITED(In Rs. Crores)
PARTICULARS | 2021 | 2020 | 2019 |
ASSETS | |||
NON CURRENT ASSETS | |||
Tangible assets | 319.92 | 352.11 | 104.04 |
Intangible assets | 770.00 | 767.48 | 740.01 |
Financial assets | 21.91 | 33.03 | 74.04 |
Trade receivables | 0.00 | 15.73 | 0 |
Tax assets | 64.94 | 48.14 | 43.95 |
Other non-current assets | 8.47 | 7.12 | 6.95 |
TOTAL NON-CURRENT ASSETS | 1,185.24 | 1,223.61 | 968.99 |
CURRENT ASSETS | |||
Inventories | 0.00 | 0 | 0.04 |
Financial assets | 917.88 | 199.5 | 216.96 |
Trade receivables | 453.44 | 625.07 | 575.68 |
Cash and cash equivalents | 783.41 | 389.03 | 383.93 |
Tax assets | 31.39 | 26.09 | 45.41 |
Other current assets | 201.38 | 109.69 | 77.98 |
TOTAL CURRENT ASSETS | 2,387.50 | 1,349.38 | 1,300.00 |
TOTAL ASSETS | 3,572.74 | 2,572.99 | 2,268.99 |
EQUITY AND LIABILITIES | |||
EQUITY | |||
Equity share capital | 41.81 | 41.81 | 42.1 |
Other equity | 2,100.36 | 1,810.80 | 1,714.90 |
TOTAL EQUITY | 2,142.17 | 1,852.61 | 1,757.00 |
LIABILITIES | |||
NON CURRENT LIABILITIES | |||
Financial liabilities | 233.21 | 229.98 | 0.37 |
Provisions | 15.20 | 22.49 | 24.68 |
Other non-current liabilities | 0.00 | 15.24 | 15.98 |
TOTAL NON-CURRENT LIABILITIES | 248.41 | 267.71 | 41.03 |
CURRENT LIABILITIES | |||
Financial liabilities | 36.53 | 75.39 | 18.14 |
Trade payables | 223.66 | 243.13 | 294.82 |
Provisions | 11.91 | 9.79 | 11.2 |
Tax liabilities | 2.84 | 15.82 | 25.5 |
Other current liabilities | 907.22 | 108.54 | 121.3 |
TOTAL CURRENT LIABILITIES | 1,182.16 | 452.67 | 470.96 |
TOTAL LIABILITIES | 1,430.57 | 720.38 | 511.99 |
TOTAL EQUITY AND LIABILITIES | 3,572.74 | 2,572.99 | 2,268.99 |
DIVIDEND AND RETAINED EARNINGS
PARTICULARS | 2021 | 2020 | 2019 | 2018 |
Dividend (In Rs.) (final + interim) | 0 | 40 | 15 | 30 |
Retained Earnings (Consolidated) (In Rs. Crores) | 1,489.19 | 1,247.51 | 1,191.92 | 993.55 |
PERFORMANCE OF THE COMPANY
Revenue from Operations decreased by around 16.52% from Rs. 2,852.05crore in FY 2020 to Rs. 2,380.91crore in FY 2021. The Revenue from operations primarily decreased due to the overall slowdown in the auto industry in general and China in particular.The Revenue from operations primarily decreased due to the impact of the COVID-19 pandemic and an overall slowdown in the auto industry in general and China in particular.
The revenue from the sale of services decreased by 18.2% to Rs. 1,917.74 crore inFY 2021 compared to Rs. 2,343.50crore in FY 2020while product revenue decreased by 8.9% to Rs. 463.16 crore compared to Rs. 508.55croresinFY 2020.
The Company earns substantial revenues in USD and GBP. During the year, on average the rupee depreciated against USD by more than 5% over the previous year’s rate while depreciation against GBP was around 8%. As a result of changes in average currency rates during FY 2021, there has been a favorable impact on revenue by Rs.94.11 crore.
EBITDA fell by18.01%, from Rs. 470.44crore in FY 2020 to Rs. 385.71crore in FY 2021.
Finance cost increased to Rs. 17.66crore during FY 2021 compared to Rs. 15.63crore in FY 2020 primarily due to an increase in interest on lease liabilities towards the addition of leased premises in India.
The exceptional items include Rs. 5.10crore towards the cost of entity restructuring activity and Rs. 0.31 crore towards loss on liquidation of Cambric GmbH.
The Profit after Taxes (PAT) decreased by 4.92% to Rs. 239.18 crore in FY 2021 from Rs. 251.55 crore during FY 2020. PATmargin as a percentage to total income increased to 9.9% in FY 2021from 8.7% in FY 2020.
The current ratio of the company is 2.01, stating that there are no liquidity issues in the company and then can pay off all its current liabilities easily.
The company has not taken any Long-term or Short-term Borrowings in FY 2021.
Tata Technologies Limited has not given any dividends for FY 2021.
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