Tata Applied sciences reported income decline of 4.7% QoQ USD versus our estimate of three.1% QoQ decline. That is in keeping with efficiency of Cyient. Whereas providers phase noticed an anticipated decline of 1.5% QoQ, the decline in expertise options phase was a lot steeper (of 15.6% QoQ). Inside providers phase, auto subsegment declined by 2.7% whereas non-auto offset it partially with 4.7% QoQ uptick. The non-auto (contains aerospace) phase has seen 4 straight quarters of sturdy development. That is in keeping with the remainder of ER&D outcomes introduced (up to now).
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ICICI Securities Report
Tata Applied sciences Ltd. has reported a pointy QoQ income decline of 4.7% USD in This autumn FY25, much like income contraction reported by Cyient-DET (-3% QoQ) and Tata Elxsi (-5.5%), resulting from:
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Sharp drop in expertise options phase -15.6%,
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hunch in auto phase -2.7%.
A number of positives embrace:
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Ebit margin enlargement of 20bps QoQ,
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BMW three way partnership led PAT margin enlargement of 190bps QoQ,
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constructive traction in aerospace phase: – up 8% QoQ.
For FY25, it reported a decline of 1.2% USD, with underperformance prevailing because the VinFast ramp-down. Although aerospace, battery engineering and BMW JV segments are panning out nicely, we count on a gradual restoration from challenges in automotive phase and projectbased nature of Tata Applied sciences’ expertise options phase. Keep Promote at Mar’26E goal worth of Rs 510 primarily based on one-year ahead PE of 25 instances.
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