Tata Technologies Limited Unlisted Shares

Business of Tata Technologies
Tata Technologies is a global leader in engineering services outsourcing and product development IT services to the global manufacturing industry; enabling ambitious manufacturing companies to design and build better products. A company of innovators, specialists in the design engineering space, who apply cutting-edge technology to provide a competitive advantage to customers in the manufacturing sector.

The company is a strategic partner for developing complete vehicles, engineering subsystems and components, managing the New Product Introduction (NPI) process through collaborative engineering tools, such as Product Lifecycle Management (PLM) and tying together information created and used throughout the extended manufacturing enterprise.

Tata Technologies is headquartered in Singapore, with regional headquarters in the United States (Novi, Michigan), India (Pune) and the UK (Warwick) with a combined global workforce of more than 8,500 employees serving clients worldwide from facilities in North America, Europe, and the Asia-Pacific region.

History of Tata Technologies
The Tata Technologies is found under the Legacy of Trust of Tata Group in 1989. Since 1989, Tata Technologies’ professionals have been contributing engineering and design services to the world’s leading manufacturers.

INCAT– It was based in the UK and was developing a reputation as a world leader in engineering and design staffing to the world’s top automotive OEMs.

Integrated Systems Technologies (IST)– It was developing 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 unequaled in the industry.

The Year 1989
Tata Technologies is founded as a business unit of Tata Motors.
INCAT formed from existing European and North American companies.

The Year 1994
Tata Technologies spins off as an independent business unit, headquartered in Singapore.

The Year 1996
Tata Technologies commencing operations in India.

The Year 1997
Wins Tata Motors E&D and IT outsourcing engagement.

The Year 2003
Moves India operations to new world-class, state-of-the-art campus Pune Infotech Park

The Year 2005
Tata Technologies acquires 100% of INCAT International UK, expanding the global footprint.

Products of the Company
1. Autodesk: Autodesk makes software for people who make things. If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you’ve experienced what millions of Autodesk customers are doing with Tata Technologies software. Autodesk is the leader in 3D design, engineering, and entertainment software.

2. CAD Solutions
3. INDUSTRIAL DESIGN & VISUALIZATION
4. Products Innovation Platform
5. Data Management
6. Simulation

Services of the Company
1. Engineering Research and Development
2. Product Lifecycle Management
3. Connected Enterprise IT

Industries the Company Caters to:
Automotive, Defence, Aerospace and Industry Heavy Machinery

Video of Tata Technologies

FY19-20 Performance Analysis
1. FY19-20 was quite challenging for Tata Technology. Falling vehicle sales and push towards ACES( Autonomous, Connected, and Electric Shared) has pushed clients of Tata Technology to reduce costs. We know 80% of Tata Technology revenue comes from the global automotive sector, the problem in that sector has impacted the overall growth of the company.
2. However, despite the problems, Tata Technology has earned a revenue of 2852 Cr in FY20, a tad lower as compared to last year where they earned 2984 Cr. The company has made operating margins of 16% in FY20. EPS of FY19-20 stands at 60 per share.
3. As per management commentary, Tata Technology has seen revenue growth of 4.4% and operating profit growth of 32% QoQ basis in the last quarter of FY20. This has achieved due to the operational efficiency program that resulted in saving ~100 Cr in FY19-20.
4. In FY19-20, Tata Technology has participated in the Electric Vehicle event in China to showcase its product called EVMV( Electric Vehicle Modular Platform). This product helps OEMs of EV to reduce costs in manufacturing.
5. Tata Technology partners with PTC to provide smart manufacturing and digital solutions to manufacturing industries worldwide.

Future Planning 
1. Tata Technology is looking to align its business portfolio with new markets and opportunities. They are doing investment in embedded electronics, digital, and software segments.
2. Last year they build the project called Autostar (Automotive Open System Architecture) for a major tier-1 automotive supplier. 20% of service business revenue comes from Digital now.
3. Tata Technology is looking to diversify its client base to grow in adverse situations. In FY19-20, the company has shown strong growth in North-America and India, however, over-dependence upon the automotive sector, especially specific clients in UK, Sweden, and China has impacted the business.

Key Takeaways from FY20-21 Annual Report:

1. Launched an AUTOSAR (AUTomotive Open System ARchitecture) development center in India for GKN – a testament to the growing reputation that Tata Technology Unlisted Company is thriving in the fast-growing eMobility and embedded electronics space.
2. Partnered with a North American original equipment manufacturer (OEM) to develop an SUV for the Chinese market – the largest automotive market in the world.
3. Secured a multi-year PLM-enabled, digital thread engagement with a tier 1 automotive supplier. This solution enabled the digital representation of mechanical/electronic components and embedded software data to be linked with requirements, test and behavioral simulations, certifications, bill of materials (BOMs) and associated process plans.
4. Rolled out the next-generation ERP solution for a North American Battery Electric Vehicle (BEV) company in support of its plans to launch multiple vehicles in the calendar year 2021.
5. This year Tata Technology has secured a breakthrough deal with Government of Karnataka to modernize 150 Industrial Training Institutes (ITIs) across the state. The award was predicated upon Tata Technology proprietary i GET IT e-Learning platform and will necessitate the development of educational content in the areas of Smart Manufacturing and Industry 4.0.

Promoters And Management:

1. Chairman- S. Ramadorai, 73, his academic credentials include a Bachelors degree in Physics from Delhi University (India), a Bachelor of Engineering degree in Electronics and Telecommunications from the Indian Institute of Science, Bengaluru (India) and a Master's degree in Computer Science from the University of California – UCLA (USA). In 1993, Ramadorai attended the Sloan School of Management's highly acclaimed Senior Executive Development Program. 2. Independent Director- Ramesh Makhija 66, is a chemical engineer from the Indian Institute of Technology, New Delhi. During his career spanning over four decades, he has been an active participant and contributor to the industrial and technology sectors, both internationally and in India. 3. Independent Director-Falguni Nayar,55, started Nykaa.com in 2012 with the vision of making the best of beauty products easily available across India. Today Nykaa is India's leading beauty retailer with over 700 brands and 80,000 products along with robust content through videos, blog and dynamic social media engagement. She was also the former Managing Director of Kotak Mahindra Capital Company, India's leading investment bank, Falguni has received many accolades throughout her career. Recognizing her contribution to the Indian beauty industry, Falguni was awarded the 'Women Ahead' award at the ET Start-Up Awards 2017. 4. CEO and Managing Director- Warren Harris,55, Mr. Harris holds a Bachelor of Engineering Degree (Honors), earned in 1986 from the University of Wales Institute of Science and Technology. He is a member of the Institute of  Mechanical Engineers and is a Chartered Engineer. In October 2011, Mr. Harris graduated from the Harvard Business School Advanced Management Program. In 2013, Mr. Harris was appointed to the Board of Overseers of the Malcolm Baldrige National Quality Award. Mr. Harris is Chairman of the North America Tata Network Forum, a platform for dialogue between the leaders of Tata Group's North American businesses.

Shareholding Pattern:

Shareholding Pattern of Tata Technologies as on 31st March 2020

Category	No. of Shareholders	No. Of Shares	% of Paid Up Capital
Tata Motors Limited	1	3,03,00,600	72.48
Alpha TC Holdings Pte. Ltd.	1	37,46,505	8.96%
Tata Capital Growth Fund I	1	18,73,253	4.48%
Tata Motors Finance Limited	1	8,11,992	1.94%

Financials of Tata Technologies Limited Unlisted Shares:

(Fig. in Crores)

Year	Revenue	PAT	OPM	NPM	EPS	ROE	ROCE	D/E
2015-16	2712	384	19.50%	14.20%	91.43	27.60%	26.56%	0.28
2016-17	2832	350	18.67%	12.36%	83.33	24.60%	32.20%	0.1
2017-18	2777	245	15.19%	8.82%	58.37	15.80%	22.30%	0.04
2018-19	2984	352	18%	12%	83.61	20%	26.75%	0
2019-20	2896	252	18%	10.77%	60	16%	28.90%	0
2020-21	2426	239	18.10%	10.04%	57.21	13.49%	14.14%	0

Key Takeaways in FY18-19 (i) Operating revenue on a consolidated basis registered an increase of 9.3% to 2,942.21 crores in 2018-19. (ii) Profit after Tax (PAT) increased by 7.7% on a standalone basis and 43.4% on a consolidated basis. (iii) During 2018-19, the Company has paid three interim dividends of 5 each per share (previous year  30 per share). (iv) Paid-up share capital of the Company increased from 43.04 crore to 43.05 crore during 2018-19 due to the issue of additional 6,188 shares under the ESOP Scheme. However, out of shares issued and outstanding, 950,501 shares are held by ESOP Trusts, hence net share capital as on March 31, 2019, is 42.10 crore after the consolidation of accounts of ESOP Trusts as per IND AS 110. Key Takeaways in FY19-20 1. Tata Technology has recorded a decrease in revenue from operations by 3.1%. The revenue from operations decreased to ₹ 2,852.05 crores during the financial year 2019-20 compared to ₹ 2,942.21 crores during the previous year. 2. The Profit after Tax (PAT) decreased by 28% to ₹ 251 crores in the financial year 2019-20 compared to ₹ 352 crores during the previous financial year. 3. EPS stands at 60 per share. 4. Tata Technology has recommended a given dividend of 40 per share in Fy19-20. This converts into a dividend yield of 3.6% at CMP of 1100 per share. Key Takeaways of FY20-21 1. The financial results in the fiscal 2021 were significantly impacted by COVID-19 and the revenue has declined to 2400 Crores from 2800 Crores last year. A fall of 16% in FY20-21. 2. The PAT decreased by 4.9% to ` 239.18 crore in financial year 2020-21 compared to ` 251.55 crore in previous financial year. 3. Despite struggle in FY20-21, the company has managed to stay float and as per management commentary, in FY22 they have such an order book that they ever had in their lifetime. Dividend History of Tata Technology Shares

Year	Dividend
2015	75
2016	35
2017	40
2018	30
2019	15
2020	40
2021	0

Financials of FY21 (in Crs)

Particulars (In Crores)	Quarter Ending				Year Ended
	Jun-21	Mar-21	Dec-20	Mar-20	Mar-21	Mar-20
Operating Revenue	691	658	642	737	2,380	2,852
Other Income	16	18.2	7.7	14	44	44
Total Income	707	676	650	751	2,425	2,897
Cost of Products of Sale	111	87	103	87	338	367
Employee Costs	340	320	311	351	1,216	1,418
Depreciation	21	21	22	25	92	99
Interest	6	4	5.3	4.2	17	15
Other Costs	130	120	113	147	440	595
Total Expenditure	607	553	556	616	2,105	2,496
Profit before exceptional items	100	122	93	135	320	400
Exceptional Items	-	1	-	3	5	8
Profit Before Tax	100	121	93	131	315	392
Tax Expenses	28	23	23	41	76	140
Profit After Tax	72	98	70	89	239	251

Tata Technology Annual Report 2021 Tata Technology Annual Report 2020 Tata Technology Annual Report 2019 Tata Technology Annual Report 2018 Tata Technology Annual Report 2017 Graphical Representation of Financials of Tata Technologies Limited Unlisted Shares