Moving to Profitability

Tata Projects is now back on track towards profitability. In the past year, we achieved a total revenue of `17,247 Crore, with a substantial order booking of `10,331 Crore. Our order backlog stood at `36,780 Crore as of March 2024.

We strategically adjusted our approach throughout the year, shifting our focus from generating revenue to achieving optimal volume. We sharpened our focus on specific segments and refined our customer mix accordingly. Additionally, we realigned our organisational structure to ensure consistent and reliable project delivery, while strategically bidding for projects that align with our capabilities and objectives.

We consciously chose to pursue customers, projects, and segments that offer strategic advantages and viability across all aspects of our operations. This proactive approach underscores our commitment to sustainable growth and long-term success.

Efficient Contract Management

We incorporate built-in price variation clauses into our projects to mitigate the adverse effects of sharp fluctuations in commodity prices. Additionally, we procure commodities only when needed rather than hedging in advance to manage these fluctuations effectively. Our contract terms and conditions include various clauses to address potential issues and ensure adherence to specifications. This comprehensive approach allows us to navigate market volatility while maintaining project integrity and performance.

Strengthening Our Balance Sheet

The process of raising capital and refinancing debt has notably improved, benefitting from the strength of the Tata legacy. We possess sufficient equity and debt capacity to manage losses and fund our projects. This has played a crucial role in funding projects facing losses or delays and managing claims.

Furthermore, we are seeing a gradual improvement in the quality of our receivables and payables. As we continue to enhance our capabilities, we acknowledge rising costs. Moving forward, we will be particularly focused on ensuring the optimal allocation of our capital as we strive for increased stability and positive cash flow.

Strategic Reinvestment of Financial Capital

We are committed to advancing our cutting-edge technologies and maintaining cost competitiveness through strategic investments. These investments aim to enhance our research and development capabilities, facilitating business growth and innovation. Additionally, we engage in various financial transactions to further expand our business footprint. We recognise the indirect economic impact of our activities on local economies and communities. We also prioritise infrastructure investments and support related services, resulting in significant indirect economic impacts that contribute to overall economic development.

While no new infrastructure investments were made in FY2024, this allowed us to concentrate on maximising the efficiency and effectiveness of our existing resources.

Commitment to Tax Compliance and Integrity

Tata Projects is dedicated to complying with all applicable laws and regulations, ensuring that we report complete and accurate information to tax authorities in a timely manner. We are committed to paying appropriate taxes on time and adhering to tax laws responsibly. This approach cultivates trust and reflects our belief that paying taxes is a fiscal duty and a crucial contribution to the Government’s societal welfare efforts.

We act professionally, fairly, and with integrity in all interactions with tax authorities, in line with the Tata Code of Conduct. We do not condone, encourage, or support tax evasion. We maintain open and collaborative relationships with government and tax authorities, fostering cooperative interactions. We have not received any financial assistance from the Government of India in FY2024. Supporting the principle of transparency, we make adequate disclosures in our financial statements to provide appropriate information regarding our tax matters to all stakeholders.

Way Forward

Moving forward, our primary goal is to enhance cash flow, profitability, resolve pending claims, and minimise involvement in stressed projects. We plan to utilise generated cash to cover overhead expenses while actively seeking new growth opportunities and project prospects.

As we look towards FY2027, our focus will be on revamping our culture, refining systems and processes, and establishing the 'Tata Projects standard' of conducting business. This will involve fostering a culture of accountability, taking ownership of responsibilities, and ensuring excellence in execution.