InCred Equities - Tata Technologies Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	51,172	52,710	62,690	73,168
Operating EBITDA (Rsm)	9,413	10,022	11,975	14,132
Net Profit (Rsm)	6,794	6,958	8,482	10,088
Core EPS (Rs)	16.7	17.1	20.9	24.9
Core EPS Growth	8.9%	2.4%	21.9%	18.9%
FD Core P/E (x)	56.67	55.33	45.39	38.17
DPS (Rs)	10.0	10.5	11.0	11.5
Dividend Yield	1.06%	1.11%	1.16%	1.21%
EV/EBITDA (x)	39.71	37.14	30.85	25.84
P/FCFE (x)	190.11	73.62	58.56	48.82
Net Gearing	(34.8%)	(36.5%)	(40.1%)	(44.6%)
P/BV (x)	11.95	11.03	9.89	8.68
ROE	21.9%	20.7%	23.0%	24.2%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	51,172	52,710	62,690	73,168
Gross Profit	13,498	14,434	16,954	19,761
Operating EBITDA	9,413	10,022	11,975	14,132
Depreciation And Amortisation	(1,059)	(1,164)	(1,334)	(1,537)
Operating EBIT	8,354	8,858	10,641	12,595
Financial Income/(Expense)	966	566	744	945
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	9,320	9,423	11,385	13,540
Exceptional Items
Pre-tax Profit	9,320	9,423	11,385	13,540
Taxation	(2,527)	(2,465)	(2,903)	(3,453)
Exceptional Income - post-tax
Profit After Tax	6,794	6,958	8,482	10,088
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	6,794	6,958	8,482	10,088
Recurring Net Profit	6,794	6,958	8,482	10,088
Fully Diluted Recurring Net Profit	6,794	6,958	8,482	10,088

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	9,413	10,022	11,975	14,132
Cash Flow from Invt. & Assoc.
Change In Working Capital	(4,071)	(1,347)	(1,517)	(1,593)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(1,011)
Other Operating Cashflow	1,638
Net Interest (Paid)/Received
Tax Paid	(3,026)	(2,465)	(2,903)	(3,453)
Cashflow From Operations	2,943	6,210	7,555	9,086
Capex	(918)	(980)	(980)	(1,200)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	4,855	751	927	1,129
Cash Flow From Investing	3,936	(229)	(53)	(71)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,990)	(4,260)	(4,463)	(4,666)
Preferred Dividends
Other Financing Cashflow	(578)	(185)	(184)	(184)
Cash Flow From Financing	(5,568)	(4,445)	(4,646)	(4,849)
Total Cash Generated	1,312	1,535	2,856	4,166
Free Cashflow To Equity	2,025	5,230	6,575	7,886
Free Cashflow To Firm	6,880	5,980	7,502	9,015

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	13,795	15,330	18,186	22,352
Total Debtors	11,479	13,283	15,798	18,438
Inventories
Total Other Current Assets	14,457	14,457	14,457	14,457
Total Current Assets	39,730	43,070	48,441	55,247
Fixed Assets	3,103	2,919	2,565	2,228
Total Investments
Intangible Assets	8,403	8,403	8,403	8,403
Total Other Non-Current Assets	4,548	4,548	4,548	4,548
Total Non-current Assets	16,053	15,869	15,515	15,178
Short-term Debt	524	524	524	524
Current Portion of Long-Term Debt
Total Creditors	4,814	5,271	6,269	7,317
Other Current Liabilities	15,891	15,891	15,891	15,891
Total Current Liabilities	21,228	21,686	22,684	23,731
Total Long-term Debt
Hybrid Debt - Debt Component	2,050	2,050	2,050	2,050
Total Other Non-Current Liabilities	8	8	8	8
Total Non-current Liabilities	2,058	2,058	2,058	2,058
Total Provisions	289	289	289	289
Total Liabilities	23,575	24,032	25,030	26,078
Shareholders Equity	32,208	34,906	38,925	44,347
Minority Interests
Total Equity	32,208	34,906	38,925	44,347

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	15.9%	3.0%	18.9%	16.7%
Operating EBITDA Growth	14.7%	6.5%	19.5%	18.0%
Operating EBITDA Margin	18.4%	19.0%	19.1%	19.3%
Net Cash Per Share (Rs)	27.63	31.41	38.45	48.71
BVPS (Rs)	79.35	86.00	95.90	109.26
Gross Interest Cover	44.18	47.88	57.96	68.60
Effective Tax Rate	27.1%	26.2%	25.5%	25.5%
Net Dividend Payout Ratio	60.0%	61.2%	52.6%	46.2%
Accounts Receivables Days	80.39	85.73	84.66	85.39
Inventory Days
Accounts Payables Days	55.18	48.08	46.05	46.42
ROIC (%)	36.4%	30.7%	35.3%	39.7%
ROCE (%)	18.1%	18.1%	20.1%	21.2%
Return On Average Assets	11.3%	11.4%	12.9%	14.0%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 02241611554 smit.gosrani@incredresearch.com

Market Data

Source: Bloomberg