Tata Elxsi on Tuesday announced a marginal quarterly revenue decline of 0.9 per cent, but marked an 8.1 per cent increase year-over-year (YoY), totaling revenues of Rs 905.9 crore for the quarter ending 31 March 2024.
Despite facing global economic uncertainties and challenges in the media and communications sectors, the company managed a commendable annual revenue growth of 13 per cent, closing the fiscal year on a decent note.
The company's profit before tax (PBT) climbed to Rs 262.4 crore, representing a YoY increase of 4.9 per cent, buoyed by a solid EBITDA margin of 28.8 per cent. In a move reflecting confidence in its financial health and a commitment to rewarding shareholders, Tata Elxsi's board recommended a substantial final dividend of 700 per cent (Rs 70 per equity share of par value Rs 10 each), pending shareholder approval at the Annual General Meeting.
CEO and Managing Director Manoj Raghavan stressed the successful integration of the company’s design business with its key industry verticals, a strategic move now fully realized and set to bolster competitive differentiation and enhance early visibility into customer product roadmaps.
The transportation sector proved to be a major revenue driver, contributing nearly half of the company’s revenues in the Software and Design Services segment with a significant growth of 24.6 per cent YoY. The healthcare and life sciences sectors also showed robust growth, with an increase of 10.8 per cent. Conversely, the media and communications business saw minimal growth, impacted by a one-off deal downturn due to a customer merger.
In strategic enhancements to its governance, Tata Elxsi is excited to welcome two new board members. Soumitra Bhattacharya, Chairman of Bosch Limited, and Ashu Suyash, former CEO of CRISIL and founder of Colossa Ventures, are set to bring their extensive experience and strategic insights to the company.
Looking forward, Tata Elxsi remains focused on pursuing growth and innovation, especially in areas of design-led engineering capabilities. With a commitment to deepening key customer relationships and expanding its global footprint, supported by a robust deal pipeline and strategic technological investments, the company is well-positioned for continued success in the new fiscal year.
