Tata Technologies (NSE:TATATECH) ROCE % : 26.86% (As of Dec. 2024)

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What is Tata Technologies ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tata Technologies's annualized ROCE % for the quarter that ended in Dec. 2024 was 26.86%.

Tata Technologies ROCE % Historical Data

The historical data trend for Tata Technologies's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Tata Technologies ROCE % Chart

Tata Technologies Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

19.23

14.76

24.78

28.32

28.46

Tata Technologies Quarterly Data
	Mar20	Mar21	Dec21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial									31.02	27.22	25.97	25.74	26.86

Tata Technologies ROCE % Calculation

Tata Technologies's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	9509.6	/	( ( (52014.9 - 19734.1)	+	(55783.2 - 21228.4) )	/ 2 )
	=	9509.6	/	( (32280.8	+	34554.8)	/ 2 )
	=	9509.6	/	33417.8
	=	28.46 %

Tata Technologies's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	9267.6	/	( ( (58669.3 - 24164.2)	+	(0 - 0) )	/ 1 )
	=	9267.6	/	( ( 34505.1	+	0 )	/ 1 )
	=	9267.6	/	34505.1
	=	26.86 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Tata Technologies (NSE:TATATECH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Tata Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Tata Technologies Ltd (NSE:TATATECH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

544028:India

Address

Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune, MH, IND, 411057

Website

https://www.tatatechnologies.com/in

Tata Technologies Ltd is an engineering services company offering product development and digital solutions, including turnkey solutions, to original equipment manufacturers (OEMs) and their tier-1 suppliers. It has deep domain expertise in the automotive industry and leverages this expertise to serve its clients in adjacent industries. The company's reportable segments are; Services, and Technology Solutions. A majority of its revenue is generated from the Services segment which includes providing outsourced engineering and designing services and digital transformation services to manufacturing clients. It generates revenue from India, North America, Europe, the United Kingdom, and other regions.

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