Tata Elxsi Q3 results: Net profit up 43.5% to Rs 151 cr, revenue up 33.2%

Tata Elxsi on Tuesday reported a 43.5 per cent year-on-year (YoY) rise in its net profit for October-December quarter at Rs 151 crore. On a quarter-on-quarter (QoQ) basis, profit was higher by 20.4 per cent. 

The design-led technology services provider's revenue from operations grew 33.2 per cent YoY and 6.7 per cent QoQ to Rs 635.4 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 14.8 per cent QoQ and 46.8 per cent YoY to Rs 210.8 crore.

The EBITDA margin stood at 33.2 per cent during the quarter under review as against 30.8 per cent in the preceding quarter and 30.1 per cent in the year-ago quarter.

"The company's growth was powered by Embedded Product Design (EPD), the company's largest division, which grew at 9.9 per cent QoQ and 36 per cent YoY," Tata Elxsi said in a release.

Within EPD, it said transportation business posted a growth of 9.7 per cent QoQ and 30.9 per cent YoY, with secular growth across electric, autonomous and connected technologies, and continued momentum with both OEMs and suppliers for design, technology and digital services across geographies. 

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Media and communications grew 6.5 per cent QoQ and 31.1 per cent YoY growth, while healthcare grew 22 per cent QoQ and 73.4 per cent YoY. "The Design business (IDV) continues to fuel strategic design-led digital deal wins for the company with a growth of 61.7 per cent on a YTD basis," it said.

Tata Elxsi MD and CEO Manoj Raghavan said that the company continues to execute strongly on its key strategies, driving growth across all three primary industry verticals and regions, building on its software and digital product engineering capabilities.

"We are seeing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers across Electric, autonomous, connected and digital, underscoring our technology and engineering leadership," he said.

Raghavan said the company continues to invest in its talent pipeline to support continued growth, and is entering the fourth quarter with the confidence of a strong order book and a healthy deal pipeline across key markets and industries.

Shares of the company closed 0.32 per cent lower at Rs 6,370.50 on the BSE on Tuesday.

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