Shares of Tata Technologies fell nearly 3 percent and hit its lowest level in 52-weeks at Rs 788.65 on January 22, a day after the company released a weak set of quarterly numbers.
The company reported a slight decline in net profit for the December quarter at Rs 169 crore, lower than the Rs 170 crore clocked in the same period last year. However, this reflects a sequential growth of around 7 percent from the Rs 157 crore recorded in Q2FY25.
Revenue from operations for Q3 stood at Rs 1,317 crore, up 2 percent from Rs 1,289 crore in the corresponding quarter of the previous fiscal. Sequentially, revenue rose 1.6 percent from Rs 1,296 crore in Q2FY25. Seasonal softness in the services vertical was offset by a seasonal uptick in the product business.
Meanwhile, the management anticipates demand weakness to bottom out in the next two quarters. The positive views from the management also prompted JM Financial raise its earnings-per-stock estimates for Tata Tech by 1-3 percent, a first since the company's market debut, and suggesting that earnings have bottomed now.
At 2.35 pm, shares of Tata Technologies were trading at Rs 797.45 on the NSE. Marking the Tata Group's first IPO in two decades, the company entered the stock market with great fanfare in 2023.
While the stock initially surged, doubling its IPO price of Rs 500 after listing, it has since been on a decline, currently down 33 percent from its post-listing peak of Rs 1,179.
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