India’s Tata Technologies reported a profit decline for the third consecutive quarter, impacted by a global slowdown in electric vehicle (EV) demand. The engineering and technology services provider, which primarily serves automobile, aerospace, and heavy machinery manufacturers, counts Tata Motors, India’s leading EV market player, as both its parent company and top client.
For the July-September period, Tata Technologies’ consolidated profit after tax fell by 2% to 1.57 billion rupees. Notably, this marks the smallest drop in the company’s profits over the last three quarters, during which it has experienced a steady decline. While Tata Technologies’ revenue saw a modest 2% growth, reaching 1.30 billion rupees in the second quarter, its expenses also rose, increasing by approximately 1%.
The demand for electric vehicles in India has surged over recent years, with EVs now comprising about 2% of the country’s 4.2 million annual car sales. However, growth has recently slowed, which analysts attribute to factors such as high purchase costs and insufficient charging infrastructure. On the international front, some automakers have revised their EV targets as consumers increasingly opt for less expensive hybrid alternatives over fully electric options.
Despite the current market challenges, CEO Warren Harris expressed optimism, stating that he anticipates stronger performance in the second half of the fiscal year.
Featured image courtesy of Tech Wire Asia
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