Tata Elxsi Q1 Results: Net profit up 2% to ₹189 crore, revenue rises 17%; check details

Tata Elxsi Q1 Results: Technology services firm Tata Elxsi announced its April-June quarter results on July 17, reporting a marginal rise of two per cent in net profit to ₹189 crore, compared to ₹185 crore in the corresponding period last year. The company's revenue from operations grew 17 per cent to ₹850 crore during the first quarter of current fiscal (Q1FY24), compared to ₹726 crore in the year-ago period.

In terms of segment performance, the industrial design and visualization division recorded a growth of 41 per cent year-on-year (YoY) in constant currency terms. The company said its design-digital offerings continue to drive volume-led growth in a challenging global market environment.

‘’The transportation segment continues to show healthy growth, registering a revenue growth of 17 per cent YoY in constant currency terms, and a healthy large deal pipeline across software defined vehicles (SDV) and electric vehicles (EVs),'' said Tata Elxsi in a regulatory filing to the stock exchanges

The company’s financial performance was also altered due to the increase in Effective Tax Rate (ETR) on account of lower tax exemption due to the completion of 5 years for 2 of its SEZ units, impacting profit margins.

‘’While the overall global economic outlook remains challenging, our customer focus and targeted efforts to keep the growth momentum going is showing good results,'' said Manoj Raghavan, CEO and MD, Tata Elxsi.

The company's EBITDA, or earnings before interest, taxes, depreciation and amortization, rose 4.1 per cent to ₹230 crore from ₹221 crore in the same quarter last fiscal, while its operating margins decreased to 27.1 per cent in Q1FY24 from 30.5 percent in Q1FY23.

The company's EBITDA margins for the quarter came in at 29.6 per cent, which it claimed to be industry-leading in the current macro-economic environment.

"While some deal closures were delayed in this quarter, we won significant new deals including a strategic multi-year multi-million US$ SDV deal with a leading Asian OEM for their SDV platform and software development, and a multi-country licensing and deployment of our Connected vehicle platform with a global Top 5 OEM,'' said CEO Raghavan

"To expand our automotive and smart mobility focus in North America, we have opened an Innovation Hub and nearshore engineering centre in Troy, Michigan that will innovate along with leading institutes and technology ecosystem in the region," Raghavan added.

The company's healthcare signalled a 3.2 per cent recovery on a quarter-on-quarter basis. The vertical also saw new product development deal wins for medical diagnostics and smart hospital equipment.

The company expanded its employee strength by hiring 422 people in the June quarter, taking the overall strength to more than 12,000 people, with attrition dropping further to 15.6 per cent.

On July 17, shares of Tata Elxsi settled 0.30 per cent lower at ₹7,710.35 apiece on the BSE.