Global engineering and product development digital services firm Tata Technologies Ltd on Saturday said that it has received a letter from the state government of Chattisgarh informing the company about the closure of the project to develop 36 government ITIs with a total project cost of Rs 1188.36 crore.
In a regulatory filing Tata Technologies said, "The company has today sent a letter to the Chattisgarh government accepting the termination of the MoA and agreed to initiate steps for refund of the escrow amount."
Tata Technologies on 23 July last year has signed a Memorandum of Agreement(MoA).Pursuant to the terms of the MoA, the company was the lead industry partner for executing the project under the MoA, which primarily entailed upgrading 36 ITIs as Center of Excellence (CoE), in the State of Chhattisgarh.
Shares of Tata Technologies Ltd. closed 1.01% lower at Rs 989.45 per share on Friday. Meanwhile, the firm reported a 15.4% decline in consolidated profit after tax at ₹162.03 crore in the June 2024 quarter, impacted by higher expenses. The company had posted a consolidated profit after tax (PAT) of ₹191.53 crore in the same quarter last fiscal, Tata Technologies Ltd said in a regulatory filing.
Consolidated revenue from operations in the first quarter stood at ₹1,268.97 crore as against ₹1,257.53 crore in the year-ago period, it added. Total expenses were higher at ₹1,072.33 crore compared to ₹1,035.42 crore in the same period a year ago, the company said.
"The overall market conditions remain favourable as the manufacturing sector continues to future-proof itself through ongoing investments in alternative propulsion systems, software-defined products and services, and smart manufacturing," Tata Technologies CEO and Managing Director Warren Harris said.
He said the company expects the sequential revenue growth of its services business to accelerate from the current quarter.
"Confidence in our full-year prospects is fuelled by our order book, continued positive momentum within our anchor accounts and tailwinds that we expect to continue to intersect with across automotive, aerospace and industrial heavy machinery," Harris said.
*With Agency Inputs
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