Tata Technologies, a supplier of product engineering and digital services to the automotive and other sectors, closed a dozen large deals in FY24, including a $50 million plus deal, five deals in the $15 to $25 million range, Warren Harris, CEO and MD of the company, said on Friday.
"We are currently engaged in several large deal discussions with existing and new customers and anticipate an uptick in deal conversions in the current quarter," Harris said while adding that Tata Technologies continues to lead in the Generative artificial intelligence (AI) and software defined devices services, as evidenced by endorsement the company received from BMW.
The Joint Venture between Tata Technologies and BMW is aimed at delivering automotive software, including software-defined vehicle (SDV) solutions for BMW Group’s premium vehicles and digital transformation solutions for its business IT in Pune, Bengaluru and Chennai.
In automotive software, the focus will be on automated driving, infotainment, and digital services. In business IT, the emphasis will be on digitalisation and automation of product development, production and sales. From the inception of this joint venture, 100 trained and experienced Tata Technologies' professionals will ensure robust and immediate contributions to software projects. The JV is likely to grow quickly to a four-digit number in the following years.
Highlighting the new developments, the company in its investor presentation emphasised other deals too, including the renewal of its engineering centre contract and bagging of strategic deals in AMR controls and embedded software with a leading global designer and manufacturer of access equipment based in North America.
Furthermore, a leading North American bus manufacturer has onboarded Tata Technologies as its strategic engineering partner for engineering support services engagement. Additionally, a premium UK-based global automotive original equipment manufacturer (OEM) partnered with Tata Technologies to implement manufacturing execution solutions for a modern luxury electric.
Another important development includes the company inking a five year memorandum of understanding (MoU) with the Telangana government for the establishment of advanced technical skill training centres in 65 industrial training institutes in the state.
Meanwhile, Tata Technologies reported a consolidated net profit of Rs 157.20 crore during Q4FY24, which is about a 27% year-on-year (YoY) drop when compared with Rs 216.60 crore registered in Q4FY23. Likewise, the company's consolidated operational revenues went down by 7.2% YoY at Rs 1301 crore in Q4FY24 versus Rs 1402.40 crore, in the year-ago period.