Tata Elxsi Q2 Profit Up By14.8% To Rs 200 Cr

Tata Elxsi on Tuesday reported a 14.8 per cent increase in Q2 net profit to Rs 200 crore from the last financial year. The company posted revenues from operations at Rs 881.7 crore, which is 3.7 per cent higher at quarter-on-quarter (QoQ) and 15.5 per cent higher on year-on-year (YoY) basis.

The operating revenue growth was 3.4 per cent higher on QoQ basis and 10.1 per cent higher on YoY on constant currency basis. The company reported profit before tax (PBT) at Rs 263.9 crore, which is 6.3 per cent higher on QoQ basis and 20.4 per cent higher on YoY basis. 

According to the company report, profit after tax (PAT) stood at Rs 200 crore, which is 5.9 per cent higher on QoQ and 14.8 per cent higher on YoY basis.

Manoj Raghavan, CEO and Managing Director, Tata Elxsi said, “We are happy to report a healthy performance in the second quarter with a top-line growth of 3.7 per cent QoQ and 15.5 per cent YoY in a challenging quarter for the industry. Our EBITDA has grown 4.8 per cent QoQ and 16.3 per cent YoY and our EBITDA margin has improved by 31 bps to 29.9 per cent. This underlines our focus on delivery and operational excellence, key account management and offerings."

The company report cites that, transportation growth stood at 7.1 per cent QoQ, 26.1 per cent YoY, aided by deals and traction in software defined vehicle (SDV) engagements. Healthcare growth stood at 3.6 per cent QoQ, 8.5 per cent YoY, driven by new product engineering, digital health and regulatory services.

"Our Transportation business, which accounts for 46.2 per cent of the revenue coming from three verticals, witnessed strong growth of 7.1 per cent QoQ and 26.1 per cent YoY. During the quarter, we also won a multi-year deal for SDV from one of the leading Automotive OEMs," Raghavan added.

The report stated that media and communications grew marginally at 0.1 per cent QoQ and 2.8 per cent YoY, aided by platform-led deals and growth in key accounts, amidst widespread industry slowdown. Industrial Design revenue crossed Rs 100 crore for the first time, growing 35.4 per cent YoY.

"Our media & communication business continues to face a cautious industry environment and grew marginally at 0.1 per cent QoQ and 2.8 per cent YoY. We continue to closely engage with our customers and are developing new offerings and relevant partnerships that will help them drive efficiencies. Our design-digital strategy has helped our industrial design division to cross Rs 100 crore revenue mark for the first time in company history. The division grew by 4.1 per cent QoQ and 35.4 per cent on a YoY basis, driven by strong demand for Design-Led engineering services," Raghavan emphasised.