Tata Elxsi stock surges 3.35% after Q2FY24 earnings | Mint
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Business News/ Markets / Stock Markets/  Tata Elxsi stock surges 3.35% after Q2FY24 earnings
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Tata Elxsi stock surges 3.35% after Q2FY24 earnings

Tata Elxsi shares surged over 3.5% in Wednesday's trade following the company's Q2FY24 earnings.

During the quarter, the company won a multi-year large deal for SDV from one of the leading automotive OEMs. (Bloomberg)Premium
During the quarter, the company won a multi-year large deal for SDV from one of the leading automotive OEMs. (Bloomberg)

Tata Elxsi, the design and digital tech arm of Tata Group, witnessed a 3.35% spike in its stock price to reach 7,694.40 apiece during early trade on Wednesday after the company delivered a decent set of numbers for Q2FY24.

The company released its Q2FY24 numbers post-market hours on Tuesday, with its consolidated net profit surging 14.8% to 200 crore. During the same period last year, the company recorded a net profit of 174.3 crore. Sequentially, the net profit was up by 5.9%.

The consolidated revenue from operations during the September quarter came in at 881.7 crore, up by 3.7% QoQ and 15.5% YoY. The company's transportation business witnessed growth of 7.1% QoQ and 26.1% YoY in Q2FY24, aided by large deals and strong traction in software defined vehicle (SDV) engagements.

During the quarter, the company won a multi-year large deal for SDV from one of the leading automotive OEMs. Its healthcare division grew by 3.6% QoQ and 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. Further, the company's Industrial Design division crossed 100 crore revenue for the first time in company history, growing 35.4% YoY in Q2 FY24, according to the company's earnings report.

Mr. Manoj Raghavan, CEO and Managing Director of 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 basis points to 29.9%. This underlines our strong focus on delivery and operational excellence, key account management, and differentiated offerings."

Tata Elxsi is a mid-cap IT stock with a market capitalization of 47,604 crore. It provides product design and engineering services to the consumer electronics, communications, and transportation industries, as well as systems integration and support services for enterprise customers. It also provides digital content creation for the media and entertainment industries.

After reaching an all-time high of 10,760 in August of last year, the company's shares entered a downward spiral, declining to their current level of 7,649. This represents a 29% decrease from their peak. Despite the recent sell-off, the stock holds the multi-bagger tag, with a remarkable return of over 407% in the past three years and a stellar 672% return over the last five years.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

 

 

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Published: 18 Oct 2023, 10:13 AM IST
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