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Tata Elxsi posts strong Q2FY24 results

Oct 17, 2023

By: BlinkX Research Team

Tata Elxsi, a global leader in design-led technology services, has reported robust results for the second quarter of FY’24. The company's revenue from operations demonstrated substantial growth, and its industrial design division achieved a significant milestone.

Revenue Growth: Tata Elxsi recorded revenues from operations of Rs. 881.7 Crores, marking a 3.7% increase QoQ and an impressive 15.5% growth YoY.

Profit Margins: The company’s operating margin stood at 29.9%, with a net margin (PBT) of 28.9%.

Profit Before Tax (PBT): Tata Elxsi reported a PBT of Rs. 263.9 Crores, reflecting a 6.3% increase QoQ and a substantial 20.4% growth YoY.

Profit After Tax (PAT): The company’s PAT reached Rs. 200.0 Crores, demonstrating a 5.9% growth QoQ and a solid 14.8% growth YoY.
Earnings Per Share (EPS): EPS was reported at Rs. 32.12, marking a 5.9% increase QoQ and a robust 14.8% growth YoY.

Business Highlights:

Tata Elxsi's transportation segment achieved significant growth of 7.1% QoQ and an impressive 26.1% YoY, supported by substantial deals and strong performance in Software Defined Vehicle (SDV) engagements.

The healthcare division reported a growth of 3.6% QoQ and 8.5% YoY, driven by new product engineering, digital health, and regulatory services.

The Media and Communications segment witnessed marginal growth of 0.1% QoQ and a 2.8% increase YoY, attributed to platform-led deals and key account growth.

Tata Elxsi's industrial design division achieved a significant milestone by surpassing Rs. 100 Crores in revenue for the first time, representing a remarkable 35.4% YoY growth.

Mr. Manoj Raghavan, CEO and Managing Director of Tata Elxsi, expressed his satisfaction with the company's strong Q2 performance, particularly the top-line growth, amidst industry challenges. He highlighted the company's focus on delivery, operational excellence, key account management, and differentiated offerings.