In the dynamic and competitive world of technology services, Tata Technology, a global leader in engineering and product development digital services, has showcased impressive growth and profitability in fiscal year 2023. This remarkable performance is a testament to the company's strategic foresight, operational efficiency, and commitment to delivering shareholder value. Revenue on the Rise In the fiscal year ended March 31, 2023, Tata Technology reported a noteworthy surge in its operational revenue, reaching INR 4,414.18 crore from INR 3,529.57 crore in the previous year. A growth that underscores the effectiveness of the company's business strategies. Furthermore, the company's other income (net) witnessed a rise, growing to INR 87.74 crore in 2023 from INR 48.80 crore in 2022. The culmination of these earnings brought the total revenue for the year to INR 4,501.92 crore, indicating a substantial leap from the previous year's total of INR 3,578.37 crore. Astute Expense Management In spite of the rise in revenue, Tata Technology demonstrated prudent financial management by keeping its expenses in check. The company's spending on technology solutions dipped slightly to INR 682.48 crore in 2023, a slight decrease from INR 688.54 crore in 2022. Meanwhile, outsourcing and consultancy charges escalated to INR 569.66 crore, up from INR 399.80 crore in the previous year. This shift illustrates Tata Technology's strategic reliance on external expertise to foster growth. Furthermore, an increase in employee benefits expense to INR 1,929.46 crore in 2023, up from INR 1,512.70 crore, signifies the company's investment in its human resources. Despite these changes, the total expenses for the year were capped at INR 3,705.77 crore, reflecting a modest increase from INR 2,991.54 crore in the preceding year. Strong Profitability Tata Technology's astute business practices yielded a substantial increase in the company's profit before tax for the fiscal year ending March 31, 2023, which stood at INR 796.15 crore, up from INR 586.83 crore. After accounting for current and deferred tax, the net profit for the year was INR 624.03 crore, a significant rise from INR 436.97 crore in 2022, implying a robust profitability trend for the company. Other Comprehensive Income Besides its primary operations, Tata Technology also reported other comprehensive income, including remeasurement of post-employment benefit obligations and exchange differences on translation of foreign operations. The total comprehensive income for the year was INR 707.59 crore, marking a significant improvement from INR 434.01 crore in the previous fiscal year. Earnings Per Share (EPS) Another highlight of Tata Technology's fiscal year 2023 performance was the substantial growth in its earnings per share (EPS). The basic EPS rose to INR 15.38 from INR 10.77 in the preceding year. Meanwhile, the diluted EPS was INR 15.37, marking an increase from the INR 10.77 figure of the previous year. Market Valuation and IPO Prospects Currently, Tata Technology's shares are available in the unlisted market at INR 1100 per share. Given the EPS of 15.38x, the price-to-earnings (P/E) ratio stands at 71x. This figure contrasts with its nearest peer, KPIT, which is trading at a P/E of 78x. The upcoming IPO of Tata Technology, likely to be priced at a P/E of 50x, could make the shares available at a price above INR 800+. Conclusion Fiscal year 2023 has been a testament to Tata Technology's growth and profitability. This trajectory, as reflected in its Profit & Loss statement, shows a strong upward trend in revenue, profit, and earnings per share. Such performance underscores the company's strategic acumen and its unwavering commitment to creating value for its shareholders. As the company gears up for its IPO, the financial landscape appears promising for Tata Technology, promising a bright future for its investors. https://unlistedzone.com/shares/tata-technologies-limited-share-price-buy-sell-unlisted-shares-of-tata-technologies/