(Reuters) – India’s Tata Technologies reported a drop in profit for the third consecutive quarter, hurt by slowing global demand for electric vehicles.
Tata Technologies provides engineering and technology services to automobile, aero and heavy machinery makers. Indian EV market leader Tata Motors is its parent and also its top client.
Its consolidated profit after tax dropped 2% to 1.57 billion rupees in the July-September quarter. However, this was also its slowest decline in the three quarters when profits have fallen.
Use of electric vehicles has grown rapidly in recent years to account for 2% of India’s annual sales of 4.2 million cars, but sales growth is now faltering, which analysts blame on high prices and a lack of charging facilities.
Globally too, some car makers are cutting back on their previous EV targets as consumers opt for hybrid vehicles that are cheaper than their electric counterparts.
Tata Technologies’ revenue rose 2% to 1.30 billion rupees in the second quarter, while expenses grew about 1%.
“We are confident that the second half of the fiscal year will show stronger performance compared to the first half,” CEO Warren Harris said.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D’Souza)
