Tata Elxsi Reports Strong Growth in Q2 FY'24

Tata Elxsi, amongst the world’s leading providers of design led technology services, announced its second quarter results for the period ending 30^th September 2023.

Highlights of the Quarter Ended September 30, 2023:

·         Revenues from operations at Rs. 881.7 Cr, + 3.7% QoQ, + 15.5% YoY

·         Operating revenue growth +3.4% QoQ and +10.1% YoY on constant currency basis

·         Operating Margin at 29.9%; Net Margin (PBT) at 28.9%

·         Profit Before Tax (PBT) at Rs. 263.9 Cr, +6.3% QoQ, +20.4% YoY

·         Profit After Tax (PAT) at Rs. 200.0 Cr, +5.9% QoQ, +14.8% YoY

·         Earning Per Share (EPS) at Rs. 32.12, +5.9% QoQ, +14.8% YoY

For the quarter ending 30^th September 2023, company reported Rs. 881.7 Cr of operating revenue, a growth of 15.5% over the same quarter of previous year (YoY).

Business Highlights:

·         Transportation growth at 7.1% QoQ, 26.1% YoY, aided by large deals and strong traction in Software Defined Vehicle (SDV) engagements.

·         Healthcare growth at 3.6% QoQ, 8.5% YoY, driven by new product engineering, digital health and regulatory services.

·         Media and Communications grew marginally at 0.1% QoQ and 2.8% YoY, aided by platform-led deals and growth in key accounts, amidst widespread industry slowdown.

·         Industrial Design revenue crosses Rs. 100 crores for the first time, growing 35.4% YoY.

Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance in the second quarter of FY24, said:

“We are happy to report a healthy performance in the second quarter with a top-line growth of 3.7% QoQ and 15.5% YoY in a challenging quarter for the industry. Our EBITDA has grown 4.8% QoQ and 16.3% YoY and our EBITDA margin has improved by 31 bps to 29.9%. This underlines our strong focus on delivery and operational excellence, key account management and differentiated offerings.

Our Transportation business, which accounts for 46.2% of the revenue coming from three verticals, witnessed strong growth of 7.1% QoQ and 26.1% YoY. During the quarter, we also won a landmark multi-year large deal for SDV from one of the leading Automotive OEMs.

Our Healthcare & Lifesciences business too registered a healthy growth of 3.6% QoQ and 8.5% YoY. Our strong design capabilities are helping us win multi-year innovation deals with leading device manufacturers.