InCred Equities - Tata Technologies Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	51,685	52,596	58,300	64,570
Operating EBITDA (Rsm)	9,341	8,960	10,397	12,152
Net Profit (Rsm)	6,770	7,134	8,182	9,569
Core EPS (Rs)	16.7	17.6	20.2	23.6
Core EPS Growth	(0.4%)	5.4%	14.7%	16.9%
FD Core P/E (x)	42.10	39.95	34.83	29.78
DPS (Rs)	11.7	11.0	11.5	11.5
Dividend Yield	1.66%	1.56%	1.64%	1.64%
EV/EBITDA (x)	29.04	30.03	25.60	21.54
P/FCFE (x)	42.67	59.04	49.06	40.58
Net Gearing	(38.4%)	(41.2%)	(44.9%)	(49.6%)
P/BV (x)	7.96	7.41	6.79	6.08
ROE	19.9%	19.2%	20.3%	21.5%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	51,685	52,596	58,300	64,570
Gross Profit	13,894	13,561	15,353	17,447
Operating EBITDA	9,341	8,960	10,397	12,152
Depreciation And Amortisation	(1,212)	(1,229)	(1,341)	(1,453)
Operating EBIT	8,128	7,732	9,056	10,699
Financial Income/(Expense)	1,045	1,732	1,851	2,071
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	41	201	225	249
Profit Before Tax (pre-EI)	9,214	9,665	11,133	13,019
Exceptional Items
Pre-tax Profit	9,214	9,665	11,133	13,019
Taxation	(2,445)	(2,531)	(2,950)	(3,450)
Exceptional Income - post-tax
Profit After Tax	6,770	7,134	8,182	9,569
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	6,770	7,134	8,182	9,569
Recurring Net Profit	6,770	7,134	8,182	9,569
Fully Diluted Recurring Net Profit	6,770	7,134	8,182	9,569

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	9,341	8,960	10,397	12,152
Cash Flow from Invt. & Assoc.
Change In Working Capital	382	(824)	(663)	(729)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(1,008)
Other Operating Cashflow	1,419	201	225	249
Net Interest (Paid)/Received
Tax Paid	(3,140)	(2,531)	(2,950)	(3,450)
Cashflow From Operations	6,993	5,806	7,009	8,222
Capex	(315)	(980)	(1,200)	(1,200)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(570)	1,921	2,041	2,260
Cash Flow From Investing	(885)	941	841	1,060
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,165)	(4,459)	(4,662)	(4,662)
Preferred Dividends
Other Financing Cashflow	(699)	(188)	(189)	(189)
Cash Flow From Financing	(4,864)	(4,647)	(4,851)	(4,851)
Total Cash Generated	1,243	2,100	2,999	4,431
Free Cashflow To Equity	6,678	4,826	5,809	7,022
Free Cashflow To Firm	6,107	6,747	7,850	9,282

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	16,116	18,216	21,215	25,646
Total Debtors	10,056	12,905	14,305	15,843
Inventories
Total Other Current Assets	20,556	20,556	20,556	20,556
Total Current Assets	46,728	51,677	56,075	62,045
Fixed Assets	2,609	2,360	2,219	1,966
Total Investments	41	41	41	41
Intangible Assets	8,694	8,694	8,694	8,694
Total Other Non-Current Assets	8,571	8,571	8,571	8,571
Total Non-current Assets	19,914	19,665	19,525	19,272
Short-term Debt	509	509	509	509
Current Portion of Long-Term Debt
Total Creditors	4,767	6,793	7,529	8,339
Other Current Liabilities	21,554	21,554	21,554	21,554
Total Current Liabilities	26,830	28,855	29,592	30,402
Total Long-term Debt
Hybrid Debt - Debt Component	1,857	1,857	1,857	1,857
Total Other Non-Current Liabilities	1,833	1,833	1,833	1,833
Total Non-current Liabilities	3,690	3,690	3,690	3,690
Total Provisions	328	328	328	328
Total Liabilities	30,848	32,874	33,610	34,420
Shareholders Equity	35,794	38,469	41,990	46,897
Minority Interests
Total Equity	35,794	38,469	41,990	46,897

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	1.0%	1.8%	10.8%	10.8%
Operating EBITDA Growth	(0.8%)	(4.1%)	16.0%	16.9%
Operating EBITDA Margin	18.1%	17.0%	17.8%	18.8%
Net Cash Per Share (Rs)	33.87	39.04	46.43	57.34
BVPS (Rs)	88.19	94.78	103.45	115.54
Gross Interest Cover	41.41	41.08	47.87	56.55
Effective Tax Rate	26.5%	26.2%	26.5%	26.5%
Net Dividend Payout Ratio	70.1%	62.5%	57.0%	48.7%
Accounts Receivables Days	76.04	79.67	85.18	85.21
Inventory Days
Accounts Payables Days	46.27	54.05	60.86	61.45
ROIC (%)	28.1%	23.6%	26.9%	31.1%
ROCE (%)	16.4%	14.4%	15.6%	16.8%
Return On Average Assets	9.8%	8.5%	9.3%	10.3%

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

Market Data

Source: Bloomberg