Tata Elxsi reports strong Q1FY24 performance as operating revenue surpasses Rs 850cr

Tata Elxsi, one of the world’s leading design-led technology service providers, has announced its robust financial performance for the first quarter of FY24, ending on June 30, 2023.

Operating revenue has surpassed Rs. 850.3 crores, accompanied by an industry-leading EBITDA margin of 29.6%. The company has demonstrated its capacity for long-term growth, with the employee base now exceeding 12,000.

The company reported a YoY growth of 17.1% in operating revenue for the quarter ending June 30, 2023. Simultaneously, profit before tax stood at Rs. 248.3 crores, showing a YoY growth of 8.9%. An additional 422 employees were added in this quarter, signifying an expansion of its workforce.

Tata Elxsi’s Industrial Design & Visualization division noted strong growth of 41.1% YoY in constant currency terms, while its Transportation business registered a revenue growth of 17.0% YoY. The Healthcare sector also made a significant recovery, with a 3.2% QoQ growth in Q1 of FY24 in constant currency.

CEO and Managing Director, Tata Elxsi, Manoj Raghavan, expressed his contentment over the company’s healthy growth amidst the current challenging macro-economic environment: “We are happy to report a healthy growth of 17.1% YoY in the current macro-economic environment, while delivering industry leading EBITDA margin of 29.6%. While the overall global economic outlook remains challenging, our customer focus and targeted efforts to keep the growth momentum going is showing good results.”

Furthermore, Manoj Raghavan acknowledged significant new product development deal wins for medical diagnostics and Smart Hospital equipment, and highlighted their strong deal pipeline, especially in Software Defined Vehicles and EV. He also underscored the company’s continued investment in talent base, their commitment to business sustainability, and their involvement with ISRO in the Gaganyaan project.

“As we step into the second quarter of this financial year, the confidence of our customers in our differentiated Design Digital proposition and delivery excellence, and a strong deal pipeline especially in the automotive, healthcare and design businesses, provides us the confidence and foundation for accelerating growth through the year,” Manoj Raghavan concluded.