On October 17, 2023: TATA ELXSI Limited (BSE, NSE: TATAELXSI) announced its Q2 2023-24 financial results, showcasing healthy and robust top-line growth. With operational and delivery excellence at the forefront of the success of the Q2 for Tata Elxsi, vital account management and a variety of offerings are at the crux of the company’s positive prospects.
Key Highlights
Here are the important highlights of the Q2 results below:
- Revenue: In terms of revenue, the company’s Q2 results show strong health with operational revenue at ₹881.7 Cr, +3.7% QoQ, +15.5% YoY. The operating revenue growth stands at +3.4% QoQ and +10.1% YoY on a basis of constant currency.
- Profit: For Q2, Net Margin (PBT) and Operating Margin are at 28.9%, and 29.9%, respectively. The rise in profit, at 14.8%, is largely due to a surge in the company’s Transportation segment.
- Segments: Transportation growth stands at 7.1% QoQ and 26.1% YoY, boosted by substantial deals and robust traction in SDV (Software Defined Vehicles). The growth of Media & Communications stands at 2.8% YoY, helped by platform-focused deals and growth spurts in new accounts, amid a slowdown in the industry. Finally, growth in the Healthcare segment stands at 3.6% QoQ and 8.5% YoY, aided by engineering in new products, regulatory services, and digital health.
Additional Read: Q2 Results Dashboard
Commentary by the Management
Manoj Raghavan, the CEO, and MD, of Tata Elxsi, made some key comments on the results, and these indicated the following:
- Q2 results portray healthy performance although this was a challenging period across the industry.
- The businesses/segments of Healthcare & Lifesciences show a healthy growth path, with wins in deals with top device manufacturers.
- The segment of Transportation, accounting for 46.2% of the revenue resulting from 3 verticals, saw promising growth.
- While the segment of Media & Communication grew marginally, the company continues its close engagement with important customers and is constantly developing new offerings.
- The company’s “Design Digital” strategy has gone a long way to aid Tata Elxsi’s Industrial Design division to go over the ₹100 Cr revenue mark. This has occurred for the very first time in the history of the company.
- The company continues to invest in a vital talent pool.
- The company looks forward to beginning its next quarter with confidence and some critical deals in the pipeline.
Additional Read: Tata Elxsi Share Price
Investing in Talent
In Q2, 585 new Elxsians were added to the already sound employee pool of the company.
Major Deals
In Q2, Tata Elxsi witnessed some major deals being closed, spelling ongoing success in collaborations and company growth. Here are the key deals:
- Leaders in Telecom in Latin America: The company has been selected as a strategic partner in a 5-year deal for video service transformation across many countries for a Latin American-headquartered operator.
- International Top-5 OEM: Tata Elxsi is the strategic partner of choice for software development for the SDV and Software Organisation of an International Automotive OEM.
- Top-notch European Supplier in Automotives: The company has been selected as a strategic development and innovation partner for certain next-generation on-board systems and EV systems.
- Critical Care Device Leader In Europe: The company’s “Design Digital” system wins a multiple-year re-engineering and innovation project in device platforms for critical care in emerging economies.
Additional Read: Tata Group
TATA ELXSI Financial Working Results
The table below shows key metrics and parameters detailing QoQ and YoY results:
| Metrics | Q2 FY 2024 | Q1 FY 2024 | QoQ Growth | Q2 FY 2023 | YoY Growth |
| Revenue from Operations | ₹881.7 Cr | ₹850.3 Cr | 3.7% | ₹763.2 Cr | 15.5% |
| Total Income | ₹912.8 Cr | ₹872.5 Cr | 4.6% | ₹781.8 Cr | 16.8% |
| EBITDA (Cr) | ₹263.6 Cr | ₹251.5 Cr | 4.8% | ₹226.5 Cr | 16.3% |
| PBT (Cr) | ₹263.9 Cr | ₹248.3 Cr | 6.3% | ₹219.2 Cr | 20.4% |
Additional Read: Tata Technologies IPO
About TATA ELXSI
Tata Elxsi commenced business in May 1989, in the Silicon Valley of India, Bangalore. Its aim was, and still is, to develop and enforce the applications of electronics, software, and embedded systems. The company strives to foster and lead innovation in the fast-paced current IT market. By adopting the best of expertise and cutting-edge technology, the company is acknowledged as a leader in engineering service providers in India and internationally and has only evolved over the past 30 years. Industries related to its business are in the domains of media, healthcare and healthcare devices, automation, broadcasting, and communications. The company is large and diverse and is aided by a network of innovation studios, worldwide offices, and international development centres. Tata Elxsi is largely encouraged by the confidence of its wide customer base and its past growth which has seen positive acceleration over the years.
Source: https://www.tataelxsi.com/investors
