Tata Technologies Ltd announced the termination of its Rs 1188.36 crore project to upgrade 36 government Industrial Training Institutes (ITIs) in Chhattisgarh. The decision follows a letter from the Chhattisgarh Government informing the company about the closure of the project.
In a regulatory filing, Tata Technologies confirmed that it has accepted the termination of the Memorandum of Agreement or MoA and will begin steps to refund the escrow amount. The MoA, signed on July 23 of the previous year, had positioned Tata Technologies as the lead industry partner responsible for transforming the ITIs into Centers of Excellence (CoEs) in Chhattisgarh.
The termination has impacted Tata Technologies’ stock, which closed 1.01 per cent lower at Rs 989.45 per share on Friday. Additionally, the company reported a 15.4 per cent decrease in consolidated profit after tax, totaling ₹162.03 crore for the June 2024 quarter, down from ₹191.53 crore in the same quarter the previous year.
Despite a slight increase in consolidated revenue from operations to ₹1,268.97 crore from ₹1,257.53 crore in the previous year period, total expenses rose to ₹1,072.33 crore from ₹1,035.42 crore, impacting overall profitability.
CEO and Managing Director Warren Harris noted that market conditions remain favourable, with the manufacturing sector continuing to invest in future technologies. He expressed optimism about the company’s revenue growth in its services sector and confidence in full-year prospects due to a robust order book and positive momentum within key accounts.
Harris anticipates that the company’s services business will see accelerated sequential revenue growth and expects ongoing support from favourable trends in automotive, aerospace, and industrial heavy machinery sectors.
