Shares of Tata Elxsi rose over 3 per cent today after the firm reported a 63 per cent rise in net profit at Rs 184.72 crore for the quarter ended June against Rs 113.38 crore in the corresponding quarter of previous fiscal.
Tata Elxsi stock gained 2.92 percent to Rs 8,025 against the previous close of Rs 7,798 on BSE. Tata Elxsi shares trade higher than 20-day, 100-day and 200-day moving averages but lower than 5-day and 50-day moving averages.
The share has risen 77.77 per cent in one year and gained 36 per cent since the beginning of this year. Total 9,695 shares of the firm changed hands amounting to a turnover of Rs 7.70 crore on BSE. The market cap of the firm rose to Rs 49,229 crore on BSE.
Net sales gained 30.1 per cent to Rs 725.89 crore in the June 2022 quarter against Rs 558.32 crore in June 2021. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 48.35 per cent to Rs 248.47 crore in the last quarter from Rs. 167.49 crore in the June 2021 quarter.
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Earnings per share (EPS) rose to Rs 29.66 in June 2022 quarter from Rs 18.21 in June 2021 quarter. The company said it crossed 10,000 employee mark with 771 net additions in the quarter.
Shweta Madnani, Choice Institutional Equities Team said, "We believe that robust revenue growth will sustain in the medium-term, although the margins may deplete given the current inflationary environment and wage hikes seen across the sector. We had a SELL rating on the stock given the rich valuations but we might upgrade the rating post a detailed review of the results along with a revised target price and rating post the concall."
Commenting on the Q1 performance, Manoj Raghavan, CEO and Managing Director, Tata Elxsi said, "We are starting FY23 on a strong note with 6.5per cent QoQ revenue growth in constant currency. This was all volume-led and supported by robust growth across divisions, verticals and key markets. We continue to maintain and expand our margins with our EBITDA growing at 58.8 per cent YoY and PAT growing at 62.9 per cent YoY. Our differentiated delivery capability powered by Domain, Design, and Digital, is helping us continue to win deals which are of strategic importance to our customers."
Tata Elxsi is among the leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.