India’s Tata Technologies posted a 3.6% rise in second-quarter profit on Wednesday, supported by growth in the engineering services firm’s mainstay services segment.
The Tata Group company expects to deliver strong double-digit revenue growth for the full year, CEO and MD Warren Harris said after the results.
Profit after tax rose to 1.71 billion rupees ($17.97 million) for the quarter ended September 30, from 1.66 billion rupees a year earlier.
Revenue from operations rose 28.4% to 16.99 billion rupees, while revenue from the services segment, which makes up nearly 80% of the total, increased about 34% from a year earlier.
Tata Technologies provides engineering, product design and manufacturing consulting services to automotive, aerospace and industrial machinery clients including JLR and Tata Motors.
The company is part of the Tata Group, which is at the centre of a dispute over control of holding company Tata Sons and whether it should go public.
India’s Tata Technologies posts quarterly profit rise, retains revenue forecast
Revenue from the technology solutions segment rose 10.5%.
The firm is likely to see better growth in its automotive business than its peers, largely due to steady spending from clients and the scaling up of a large project with a Japanese original equipment manufacturer, analysts at Ambit Capital said in a note.
Earlier this month, Reuters exclusively reported that Honda Motor 7267.T would tie up with Tata Technologies to develop cars for the Indian market, saving the Japanese automaker nearly 20% in costs.