Equity Research Report on Tata

Technologies
INDUSTRY – Software Engineering
SECTOR- Software technologies
AUTHORIZED SHARE CAPITAL – Rs.607,000,000
PAID UP CAPITAL – Rs.430,437,024. HEADQUARTER- Pune, Maharashtra
CORPORATE IDENTIFICATION NUMBER- (CIN) CEO- Mr.Warren Kevin Harris
U72200PN1994PLC013313
PARENT- Tata Motors
REGISTRATION NUMBER – 13313
DIRECTORS- Warren Kevin Harris, Pathamadai
ADDRESS- Balachandran Balaji, Ramadorai Subramanian,
Plot No 25, Falguni Sanjay Nayar, Rakesh Makhija, Praveen
Rajiv Gandhi Infotech Park, Purushottam Kadle, Guenter Karl Butschek
Hinjawadi, FOUNDED- August 22,1994
Pune MH 411057 IN
PRODUCTS- Software publishing, engineering
and design, product lifecycle management,
manufacturing, product development, and IT
ACHIEVEMENTS: service management to automotive and
aerospace original equipment

Year Awards WEBSITE- www.tatatechnologies.com

Dassault Systèmes for exceptional

2015
performance in sales and marketing

Gold Medallion award in recognition of

2014
over $1 million net revenue

2014 Quota Attainment award

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is
not indicative of future results. Our website has been prepared for informational purposes only and is not intended to
be used as a complete source of information on any particular company. All facts and figures taken from the
shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above
numbers.
Company Profile

Tata Technologies Limited is a company in the Tata Group that provides services in engineering and design,
product lifecycle management, manufacturing, product development, and IT service management to
automotive and aerospace original equipment manufacturers and their suppliers. It is a subsidiary of Tata
Motors. The company is active in North America, Europe, the Middle East and the Asia Pacific region.

The company was founded in 1989 and acquired INCAT, a European-based company, in 2005. Tata
Technologies has headquarters in Pune and regional headquarters in the United States (Novi, Michigan),
ThaneOne Corporate Business IT Park, Thane and the UK (Coventry). The company operates in 25
countries, and has a combined global work force of more than 8,000 employees,[citation needed] including
around 4,000 professionals worldwide.15th Largest IT company in the Fortune India Infotech Industry
ranking.

The History of Tata Technologies

The foundation of Tata Technologies is the Legacy of Trust that is the hallmark of the Tata group. Since
1989, Tata Technologies’ professionals have been contributing engineering and design services to the
world’s leading manufacturers.

Today’s organisation results from a combination of the integrity and entrepreneurial spirit of three
pioneering organisations. At the same time that Tata Technologies was distinguishing itself in India as an
engineering organisation, INCAT, based in the UK, was developing a reputation as a world leader in
engineering and design staffing to the world’s top automotive OEMs. All this while Integrated Systems
Technologies (IST) was establishing itself 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 unequalled in the industry.

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is
not indicative of future results. Our website has been prepared for informational purposes only and is not intended to
be used as a complete source of information on any particular company. All facts and figures taken from the
shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above
numbers.
 Financial Year 2019

Revenue: 2984.4 Cr

PBT: 470.9 Cr

PAT: 245.8 Cr

PAT Margin: 8.23%

Financial Parameters

Parameters Year 2018 Year 2017 Year 2016

Revenue (Rs.Cr) 2777 2832 2712

PAT (Rs.Cr) 245 350 384

PAT Margin(%) 8.82 12.36 14.2

EPS (in Rs) 58.37 83.33 91.43

ROE (%) 15.8 24.6 27.6

ROCE (%) 22.3 32.2 26.5

D/E (%) 0.04 0.10 0.28

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is
not indicative of future results. Our website has been prepared for informational purposes only and is not intended to
be used as a complete source of information on any particular company. All facts and figures taken from the
shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above
numbers.
MediaBuzz
Tata Tech, VDIA to set up aerospace & defence centre in Nagpur

Tata Technologies said it has joined hands with the Vidarbha Defence Industries Association (VDIA) for
setting up an aerospace and defence centre in Nagpur. The partnership, supported by the Maharashtra
government, will promote the state as an aerospace and defence manufacturing and export hub, a release
said today. The MoU was signed in the presence of Maharashtra chief minister Devendra Fadnavis at the
'Made in Vidarbha Aerospace and Defence Summit' in Nagpur last week, it said.

Anand Bhade, president Asia Pacific, Tata Technologies, said, "Tata Technologies' unique offerings for
aerospace and defence are perfectly aligned to VDIA's vision of creating a first-of-its-kind ecosystem to
facilitate defence-integrated development by supporting the Indian aerospace and defence industry to be
globally competitive."

Strengths
1] CORPORATE SUSTAINABILITY

To co-create sustainable value for our key stakeholders through engineering and technology innovation.
Businesses are powerful constituents of society and the most successful, respected, and desirable
businesses exist to do much more than make money –they exist to affect positive change in the world.
The Tata name has been synonymous with corporate social responsibility (CSR) for more than a century.
This commitment to doing well by doing good is illustrated by Tata Sons, the principal investment holding
company and promoter of Tata companies (including Tata Technologies), directing 66 percent of its equity
to philanthropic trusts that support education, health, economic empowerment, environmental
sustainability, arts and culture.

As a Tata company, Tata Technologies proudly champions sustainable, socially responsible business
practices and undertakes many philanthropic and community development initiatives throughout the year.
Moreover, sustainability is managed as a core pillar of the company’s strategy, with oversight by a
dedicated subcommittee of the Board of Directors. Every year, this subcommittee conducts a materiality
assessment of the environmental, social and governance factors that surround the company with a view to
identifying issues that represent high concern to external stakeholders and have the potential to
significantly impact the company’s performance. The output of the materiality assessment is a set of
priorities that the company has embraced in the areas of education, diversity, green workplaces, and
ensuring the products that we help our clients engineer positively impact safety, health and the
environment.

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is
not indicative of future results. Our website has been prepared for informational purposes only and is not intended to
be used as a complete source of information on any particular company. All facts and figures taken from the
shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above
numbers.
2] READY ENGINEER
Demand for engineers continues to rise, but the supply is not keeping pace. And too often engineering
graduates are leaving school without the right set of competencies to excel in the professional world.

Over the last several years, Tata Technologies has invested in many programs aimed at developing the
students of today into the star technical professionals of tomorrow. This mission was driven by the
understanding that although industry and academia are inextricably linked, they are not always aligned.
And, in fact, they often operate in isolation of one another.

But what if instead they worked together to develop curriculums and classroom material? What if they
partnered to provide students real-world, hands-on exposure to the kind of work they would be doing as
professionals, using the latest technology, before they graduate? The implications of these questions form
the foundation of Tata Technologies’ flagship CSR program, Ready Engineer.

As of now we have Ready Engineer program being conducted in 30 engineering colleges in India befitting
around 4000 students every year. We provide internship and training opportunities to many young
engineers at Tata Technologies offices in North America and Europe.

3] EMPOWERMENT VIA EDUCATION (EVE)

Increasing access to quality education for girls is a key goal of Tata Technologies. To support this, the
company partnered with the Lila Poonawala Foundation to offer financial support and mentorship to more
than 150 promising students from under-served populations, including low income families, marginalized
castes and tribes. The EVE program covers a full four-year undergraduate education.

4] GREEN TECHNOLOGY

As part of the company’s effort to embed sustainability in its day-to-day operations and reduce the
company’s carbon footprint, Tata Technologies has launched an intelligent energy conservation policy
across eligible desktop and laptop computers. Starting in October 2016, IT rolled out a system that
automatically turns off displays after five minutes of inactivity and turns on hibernate mode after 30
minutes of inactivity. The device restores back to its last active state, without data loss, when the user
begins interacting with the system. In addition to this, Tata Technologies continually monitors energy
usage and promotes green infrastructure by optimizing natural light, using LED lights, and conducting
environmental awareness and stewardship seminars for employees.

Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is
not indicative of future results. Our website has been prepared for informational purposes only and is not intended to
be used as a complete source of information on any particular company. All facts and figures taken from the
shareholders report available in the public domain, Analah Capital doesn’t take any responsibility for the above
numbers.