Tata Elxsi reports strong fiscal year 2023-24 performance amid global challenges
Tata Elxsi, one of the world’s leading providers of design-led technology services, announced a robust financial performance for the fiscal year ending March 31, 2024. The company reported an impressive annual revenue of Rs. 3,552.1 Cr, marking a 13% year-over-year (YoY) growth. This growth is highlighted by a profit before tax (PBT) of Rs. 1048.7 Cr, up by 11.9% from the previous year. The EBITDA margin stood strong at 29.5%, while the PBT margin was reported at 28.5%.
For the fourth quarter, Tata Elxsi saw a slight quarterly decrease in revenue, down 0.9% from the previous quarter, totaling Rs. 905.9 Cr. However, compared to the same quarter last year, this represents an 8.1% increase. The company achieved a PBT of Rs. 262.4 Cr for the quarter, a 4.9% YoY increase. The EBITDA margin for the quarter was slightly lower at 28.8%, with a PBT margin of 27.9%.
The transportation sector showed exceptional growth, with a 24.6% increase in revenue, driven by significant deals in electric and software-defined vehicles as well as partnerships with original equipment manufacturers (OEMs). The healthcare sector also saw a solid increase, growing 10.8% YoY. Conversely, the media and communications sector faced challenges but managed a slight growth of 0.2% YoY.
Throughout the year, Tata Elxsi focused on integrating its design services with its software and digital offerings, enhancing its competitive edge and customer product insights. This strategic alignment has now been fully implemented, with a new reporting structure under the Software and Design Services (SDS) segment. Significant growth was also seen in system integration and support services, despite challenges such as the Red Sea shipping crisis affecting hardware deliveries.
Tata Elxsi’s CEO and Managing Director, Mr. Manoj Raghavan, commented on the company’s enduring success and strategic direction, stating, “Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroeconomic uncertainties.” He also highlighted the addition of new board members, Mr. Soumitra Bhattacharya and Ms. Ashu Suyash, whose expertise in the automotive and investment sectors will provide valuable strategic insights.
The Board of Directors recommended a final dividend of 700% (Rs. 70 per equity share) for the fiscal year, subject to shareholder approval at the upcoming Annual General Meeting. Looking ahead, Tata Elxsi is poised for continued growth and innovation, with strong partnerships and a robust pipeline that promise to drive future successes.
Tata Elxsi’s performance in FY 2023-24 exemplifies how technology companies can thrive despite uncertain economic conditions by focusing on innovation and strategic industry partnerships. The company’s success in integrating design and technology not only strengthens its market position but also enhances its ability to adapt to evolving industry demands.