Tata Technologies rebounds from pandemic lows to target approximately $ 500 million in revenue this fiscal year

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Tata Technologies, a global digital services engineering and product development company, expects to record nearly half a billion dollars in revenue this fiscal year, thanks to accelerated growth in electric mobility around the world and project offshoring by its customers in the aftermath of COVID-19, according to a senior company official.

The company, which had seen a “precipitous decline” in revenue at the start of the pandemic, had reported revenue of $ 119.3 million in the second quarter of the current fiscal year compared to $ 80.1 million in the same fiscal year. period of FY21.

“We have seen sequential quarter-over-quarter growth over the past six quarters and we expect it to continue. We had a sharp decline in revenue at the start of COVID-19. We have seen all of that come back.

“This (fiscal) year for the first time in our history, we will be approaching half a billion dollars (revenue),” Warren Harris, CEO and chief executive officer of Tata Technologies, told PTI.

Define second-quarter revenue as “the biggest revenue we’ve ever had in our history,” he said, “So to move from that precipitous decline at the start of COVID, to a point where we’re now bigger than we are. “mai stato is a testament to our portfolio and value proposition, to customer relationships, but also to the enthusiasm surrounding our industry.”

When asked whether the company’s revenue growth would have come primarily from its ability to e-mobility, he said, “I think it’s appropriate to say that the move to electrification provided the catalyst for the tremendous growth we’ve enjoyed. in the last 12 months. … ”

However, he added: “But I would also like to warn that, to say that COVID has taught all of our manufacturing customers – not just automotive, industrial machinery and now aerospace – that complex engineering, full turnkey product development Hand can be undertaken in an offshore context.

“And this is something that Tata Technologies is uniquely known for. This also provides the kind of growth fuel that we have received.”

Elaborating on the company’s strength in the electric vehicle (EV) space, Harris said, “We have the great privilege, from a market position, to work with some of the world’s most progressive automotive companies, not just startups, not just startups. the new energy vehicle companies, but many traditional OEMs who are investing very heavily to reach artists like Tesla. ”

Stating that Tata Technologies developed its first electric vehicle in 2012 and has invested in building expertise and intellectual property on electric vehicle technology for over 10 years, it said a lot has been done “in anticipation of the type of pendulum swing that we’re seeing at the moment “with almost everyone moving away from internal combustion engines to embrace some form of electrification.

“That history of over 10 years in this space and the fact that we have worked with the likes of NIO, the fact that we have worked with the likes of Rivian, the fact that we have been very involved in JLR’s investment in I- Pace, those experiences and investments we have made have truly positioned Tata Technologies in a relatively unique way, ”added Harris.

As the pandemic has hit hard, many positives have emerged from Tata Technologies’ perspective.

“At the start of COVID-19, none of us knew what was going to happen. Our customers not only in the automotive sector but also in aerospace and industrial heavy machinery, most of them have taken steps to reduce costs and protect their own. profitability and health.

“We have had organizations in different parts of the world that have enforced their force majeure clauses within contracts and short closed engagements with us,” he said.

The first three months of last fiscal year – April, May and June 2020 – were “a very difficult time for the industry. It was a very difficult time for our customers and for ourselves,” he recalled.

Since then, he said, “Most of our clients have taken this opportunity to truly influence the change from the old way of doing things to the new way of doing things. The appetite for outsourcing has grown exponentially. confidence in digital has grown exponentially, and the will to change has accelerated.

“All of this has created huge demand, once again, for our industry and especially for organizations such as Tata Technologies who are seen as strategic partners for many of our customers.”

As a result, he said Tata Technologies has seen sequential quarter-over-quarter growth over the past six quarters.

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