Tata Elxsi announces promising Q2FY24 financial results amid industry challenges

Tata Elxsi, a global frontrunner in design-led technology services, has unveiled its financial results for the quarter ending on 30th September 2023. The noteworthy figures indicate:

• Operating revenue standing at Rs. 881.7 Cr, marking a 15.5% YoY and 3.7% QoQ surge.
• The Operating Margin clocking in at 29.9%, with a Profit Before Tax (PBT) of Rs. 263.9 Cr, showing a 20.4% YoY and 6.3% QoQ increase.
• Profit After Tax (PAT) registering Rs. 200.0 Cr, exhibiting a growth of 14.8% YoY and 5.9% QoQ.
• Earning Per Share (EPS) recorded at Rs. 32.12, rising by 14.8% YoY and 5.9% QoQ.

Diverse Business Verticals Driving Tata Elxsi’s Growth

The quarter’s business growth metrics are compelling across different verticals:

• Transportation witnessed a 26.1% YoY and 7.1% QoQ growth, fueled by large deals and robust Software Defined Vehicle (SDV) engagements.
• Healthcare experienced an 8.5% YoY and 3.6% QoQ increment, driven by novel product engineering and digital health innovations.
• Media and Communications observed a marginal 2.8% YoY and 0.1% QoQ growth, bolstered by platform-focused deals amid an industry-wide deceleration.
• Industrial Design revenue surpassed Rs. 100 crores for the first time, surging by 35.4% YoY.

Discussing the company’s accomplishments, Manoj Raghavan, CEO and Managing Director of Tata Elxsi, stated, “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 margin has improved by 31 bps to 29.9%. This underlines our strong focus on delivery and operational excellence, key account management, and differentiated offerings… We are starting our third quarter with confidence in our differentiated Design-Digital capabilities and a strong deal pipeline.”