Tata Technologies posts slightly higher second-quarter profit; expects double-digit FY growth

Business Recorder reported that India's Tata Technologies earned 1.71 billion rupees ($17.97 million) in profit after tax in the quarter closing on September 30, up 3.6% from 1.66 billion rupees a year earlier. The services arm, which accounts for nearly 80% of total revenue, supported the gain.

Revenue from operations climbed 28.4% to 16.99 billion rupees, and the services segment expanded roughly 34% year on year. Chief executive Warren Harris said the company anticipates strong double-digit revenue growth across the full financial year. Analysts at Ambit Capital expect automotive activity to outpace rivals, citing steady client spending and the expansion of a major project for a Japanese original equipment manufacturer.

Its customers work in car making, aerospace and industrial machinery, among them JLR and Tata Motors. Business Recorder also carried a Reuters report from earlier this month, which said Honda Motor 7267.T would partner with the firm to develop cars for India and save the Japanese automaker nearly 20% in costs.