Equity Research Report on Tata Technologies

Equity Research Report on Tata

Technologies

INDUSTRY – Software Engineering SECTOR- Software technologies

AUTHORIZED SHARE CAPITAL – Rs.607,000,000

PAID UP CAPITAL – Rs.430,437,024. HEADQUARTER- Pune, Maharashtra CORPORATE IDENTIFICATION NUMBER- (CIN) CEO- Mr.Warren Kevin Harris U72200PN1994PLC013313 PARENT- Tata Motors REGISTRATION NUMBER – 13313 DIRECTORS- Warren Kevin Harris, Pathamadai ADDRESS- Balachandran Balaji, Ramadorai Subramanian, Plot No 25, Falguni Sanjay Nayar, Rakesh Makhija, Praveen Rajiv Gandhi Infotech Park, Purushottam Kadle, Guenter Karl Butschek Hinjawadi, FOUNDED- August 22,1994 Pune MH 411057 IN PRODUCTS- Software publishing, engineering and design, product lifecycle management, manufacturing, product development, and IT ACHIEVEMENTS: service management to automotive and aerospace original equipment Year Awards WEBSITE- www.tatatechnologies.com

Dassault Systèmes for exceptional 2015 performance in sales and marketing

Gold Medallion award in recognition of 2014 over $1 million net revenue

2014 Quota Attainment award

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is not indicative of future results. Our website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. All facts and figures taken from the shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above numbers.

Company Profile

Tata Technologies Limited is a company in the Tata Group that provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers. It is a subsidiary of Tata Motors. The company is active in North America, Europe, the Middle East and the Asia Pacific region.

The company was founded in 1989 and acquired INCAT, a European-based company, in 2005. Tata Technologies has headquarters in Pune and regional headquarters in the United States (Novi, Michigan), ThaneOne Corporate Business IT Park, Thane and the UK (Coventry). The company operates in 25 countries, and has a combined global work force of more than 8,000 employees,[citation needed] including around 4,000 professionals worldwide.15th Largest IT company in the Fortune India Infotech Industry ranking.

The History of Tata Technologies

The foundation of Tata Technologies is the Legacy of Trust that is the hallmark of the Tata group. Since 1989, Tata Technologies’ professionals have been contributing engineering and design services to the world’s leading manufacturers.

Today’s organisation results from a combination of the integrity and entrepreneurial spirit of three pioneering organisations. At the same time that Tata Technologies was distinguishing itself in India as an engineering organisation, INCAT, based in the UK, was developing a reputation as a world leader in engineering and design staffing to the world’s top automotive OEMs. All this while Integrated Systems Technologies (IST) was establishing itself as North America’s fastest growing and most forward thinking systems integrator and Product Lifecycle Management (PLM) software solutions provider.

In 1998, INCAT and IST merged to form INCAT International, a global product solutions and services provider serving the automotive and aerospace industries worldwide. In late 2004, INCAT plc became a publicly traded company on the London Stock Exchange and, within a year, was acquired by Tata Technologies. That move created a unique global provider of Engineering Services Outsourcing (ESO), Product Development IT services and PLM solutions with combined expertise, resources and experience that are unequalled in the industry.

Financial Year 2019

Revenue: 2984.4 Cr

PBT: 470.9 Cr

PAT: 245.8 Cr

PAT Margin: 8.23%

Financial Parameters

Parameters Year 2018 Year 2017 Year 2016

Revenue (Rs.Cr) 2777 2832 2712

PAT (Rs.Cr) 245 350 384

PAT Margin(%) 8.82 12.36 14.2

EPS (in Rs) 58.37 83.33 91.43

ROE (%) 15.8 24.6 27.6

ROCE (%) 22.3 32.2 26.5

D/E (%) 0.04 0.10 0.28

MediaBuzz

Tata Tech, VDIA to set up aerospace & defence centre in Nagpur

Tata Technologies said it has joined hands with the Vidarbha Defence Industries Association (VDIA) for setting up an aerospace and defence centre in Nagpur. The partnership, supported by the Maharashtra government, will promote the state as an aerospace and defence manufacturing and export hub, a release said today. The MoU was signed in the presence of Maharashtra chief minister Devendra Fadnavis at the 'Made in Vidarbha Aerospace and Defence Summit' in Nagpur last week, it said.

Anand Bhade, president Asia Pacific, Tata Technologies, said, "Tata Technologies' unique offerings for aerospace and defence are perfectly aligned to VDIA's vision of creating a first-of-its-kind ecosystem to facilitate defence-integrated development by supporting the Indian aerospace and defence industry to be globally competitive."

Strengths

1] CORPORATE SUSTAINABILITY

To co-create sustainable value for our key stakeholders through engineering and technology innovation. Businesses are powerful constituents of society and the most successful, respected, and desirable businesses exist to do much more than make money –they exist to affect positive change in the world. The Tata name has been synonymous with corporate social responsibility (CSR) for more than a century. This commitment to doing well by doing good is illustrated by Tata Sons, the principal investment holding company and promoter of Tata companies (including Tata Technologies), directing 66 percent of its equity to philanthropic trusts that support education, health, economic empowerment, environmental sustainability, arts and culture.

As a Tata company, Tata Technologies proudly champions sustainable, socially responsible business practices and undertakes many philanthropic and community development initiatives throughout the year. Moreover, sustainability is managed as a core pillar of the company’s strategy, with oversight by a dedicated subcommittee of the Board of Directors. Every year, this subcommittee conducts a materiality assessment of the environmental, social and governance factors that surround the company with a view to identifying issues that represent high concern to external stakeholders and have the potential to significantly impact the company’s performance. The output of the materiality assessment is a set of priorities that the company has embraced in the areas of education, diversity, green workplaces, and ensuring the products that we help our clients engineer positively impact safety, health and the environment.

2] READY ENGINEER Demand for engineers continues to rise, but the supply is not keeping pace. And too often engineering graduates are leaving school without the right set of competencies to excel in the professional world.

Over the last several years, Tata Technologies has invested in many programs aimed at developing the students of today into the star technical professionals of tomorrow. This mission was driven by the understanding that although industry and academia are inextricably linked, they are not always aligned. And, in fact, they often operate in isolation of one another.

But what if instead they worked together to develop curriculums and classroom material? What if they partnered to provide students real-world, hands-on exposure to the kind of work they would be doing as professionals, using the latest technology, before they graduate? The implications of these questions form the foundation of Tata Technologies’ flagship CSR program, Ready Engineer.

As of now we have Ready Engineer program being conducted in 30 engineering colleges in India befitting around 4000 students every year. We provide internship and training opportunities to many young engineers at Tata Technologies offices in North America and Europe.

3] EMPOWERMENT VIA EDUCATION (EVE)

Increasing access to quality education for girls is a key goal of Tata Technologies. To support this, the company partnered with the Lila Poonawala Foundation to offer financial support and mentorship to more than 150 promising students from under-served populations, including low income families, marginalized castes and tribes. The EVE program covers a full four-year undergraduate education.

4] GREEN TECHNOLOGY

As part of the company’s effort to embed sustainability in its day-to-day operations and reduce the company’s carbon footprint, Tata Technologies has launched an intelligent energy conservation policy across eligible desktop and laptop computers. Starting in October 2016, IT rolled out a system that automatically turns off displays after five minutes of inactivity and turns on hibernate mode after 30 minutes of inactivity. The device restores back to its last active state, without data loss, when the user begins interacting with the system. In addition to this, Tata Technologies continually monitors energy usage and promotes green infrastructure by optimizing natural light, using LED lights, and conducting environmental awareness and stewardship seminars for employees.