Tata Technologies shelves project to develop 36 Govt ITIs in Chhattisgarh

Global engineering and product development company Tata Technologies on Saturday said that it has cancelled a project worth Rs 1,188.36 crore to develop 36 government ITIs (industrial training institutes) in Chhattisgarh.

In a regulatory filing with the stock exchange, the company said it received a letter from the Chhattisgarh government, "informing the company about closure of the Project and termination of the MoA (memorandum of agreement) as they are exploring alternate options to meet the Project objectives".

Tata Technologies further said that it "has today sent a letter to the Chhattisgarh government accepting the termination of the MoA and agreed to initiate steps for refund of the escrow amount."

The MoA was signed on July 22, 2023. The company was the lead industry partner for executing the project under the MoA, which "primarily entailed upgrading 36 ITIs as Centre of Excellence (CoE), in the state of Chhattisgarh".

Shares of Tata Technologies closed 1.01 per cent lower at Rs 989.45 per share on Friday.

The IT major posted a 15.4 per cent decline in consolidated profit after tax (PAT) at Rs 162.03 crore in the April-June quarter. Consolidated revenue from operations stood at Rs 1,268.97 crore compared to Rs 1,257.53 crore in the year-ago period.

For FY24, Tata Technologies reported profit before tax (PBT) at Rs 932 crore in FY24, a 17.1 per cent growth (year-on-year), as the board recommended a final dividend of Rs 8.40 per equity share and a special dividend of Rs 1.65 per share.

The global engineering services company registered 15.9 per cent growth in total operating revenue to Rs 5,117 crore in the last fiscal year. In the last three years, revenue from operations has grown at 29 per cent compound annual growth rate (CAGR) while operating EBITDA grew at a 35 per cent CAGR.

(With inputs from IANS)