On January 23, 2024, Tata Elxsi Limited (BSE, NSE: TATAELXSI) announced its Q3 2023-24 results, delivering healthy growth for the quarter with Revenue from Operations rising at 3.7 QoQ, and EBITDA Margin at 29.5%.
Table of Content
Overall Result Takeaways
As Tata Elxsi continues to execute strongly on the Design Digital proposition, Q3 results show growth and promising prospects for the months ahead. Here are the overall Q3 FY24 result highlights:
- The Revenue from Operations stood at ₹914.2 Cr, marking a rise of 3.7% QoQ, and an increase of 11.8% YoY.
- The Company’s Operating Revenue grew by 3.0% QoQ and by 9.4% YoY on the basis of Constant Currency.
- The Operating Margin for the quarter stood at 29.5%; the Net Margin (PBT) at was at 28.9%.
- For Q3 F Y24, the PBT or Profit Before Tax was at ₹274.1 Cr, a rise of 14.2% on a YoY basis.
- The PAT or Profit After Tax was clocked at ₹206.4 Cr, a growth of 3.2% QoQ, and 6.0% YoY.
- The EPS or Earning Per Share stood at ₹33.15, a rise of 3.2% QoQ, and 6.0% YoY, for Q3 FY24.
Additional Read: Q3 Results Dashboard
Q3 FY24 Business Growth
In Q3 FY24, the Company has ridden a wave of growth in its business operations as reflected in the details below:
- The Company witnessed growth in Transportation, at 2.7% QoQ and 15.6% YoY, led by deal wins and the ramp-up of Software Defined Vehicle (SDV) engagements.
- There was also Healthcare growth clocked at 4.6% QoQ and 13% YoY, boosted by fresh regulatory services and new product engineering.
- The Media and Communications area grew 0.6% QoQ and 3.4% YoY, and this performance was credible given the challenges faced by the whole technology, media, and telecom industry in general.
- The Revenue of Industrial Design saw a robust rise, growing 12.3% QoQ, and leading with Design Digital.
- The area of System Integration Services grew by 14.7% QoQ supported by key wins in deals plus managed services.
- In terms of Revenue by geography, the Company witnessed major growth from the markets in Europe.
The Management’s Take on Q3 Results
The CEO and MD of Tata Elxsi had some key aspects of Q3 results to share and these are highlighted below:
- The third quarter of FY24 displayed robust performance with headline growth at 3.7% QoQ and 11.8% YoY. This has occurred despite a challenging industry quarter.
- Key business segments of Healthcare & Lifesciences executed solidly, to generate growth of 4.6% QoQ and 13% YoY. This was enhanced by substantial deals in regulatory services as well as new product engineering services.
- The Company’s Transportation business experienced stable growth of 2.7% QoQ, showcasing good growth in a brief period.
- While there were some delays in closures of deals and planned ramp-ups owing to the brief quarter and holidays, the Company has positioned itself well to leverage opportunities for growth in its continuing transformation of the automotive industry and software.
- The Media & Communication side of the business has done optimally well in a somewhat deteriorated environment for the entire related industry, and has grown by 0.6% QoQ and 3.4% YoY.
- The Company’s trademark strategy of Design-Digital continues to drive growth and differentiation, with the Design business segment showing robust growth at 12.3%. This has been driven by the Company’s design teams that have executed key projects covering design implementation and user research to aid customers to transform consumer experiences spanning all industries.
Additional Check: Tata Elxsi Limited Share Price
Other Q3 Growth Gains
The Q3 results of Tata Elxsi were marked by other announcements that played a role in the success of the Company in the quarter:
- The Company earned the recognition of its Design Digital skills with the German Design Award 2024 for Excellence in Design with the Gen 3 HMI. This was an award won for the Company’s next generation automotive HMI design shared with Tata Motors, actually displaying technology and the power of design working together.
- The EBITDA of the Company remains steady at above the band of 29% despite investing in new employees.
- The Company has added more than 350 employees in Q3, with a net of 1,357 employees in the last 9 months of FY24. Talent retention and employee engagement are at 12.9%.
Winning All the Way with Deals
Q3 FY24 was a big deal for Tata Elxsi as the Company signed off on key deals, mentioned below:
- A Design Digital deal was achieved, from a top Asian Automotive OEM for the development of a next-gen HMI for in-cockpit interface and infotainment for its next generation vehicle range.
- Tata Elxsi won a large deal related to product engineering consolidation, for a leading MSO in North America. This puts the Company at an advantage with its distinct offshore execution capability.
- Tata Elxsi achieved a multi-year product engineering program for connected digital cockpit and infotainment from a top Japanese automotive supplier.
- An international medical devices enterprise has chosen Tata Elxsi for internationasl regulatory services for the delivery of efficiencies using advanced AI algorithms and technology.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | QoQ Growth | Q3 FY 2022-23 | YoY Growth |
| Revenue from Operations | 914.2 | 881.7 | 3.7% | 817.7 | 11.8% |
| Total Income | 949.2 | 912.8 | 4.0% | 836.9 | 13.4% |
| EBITDA | 270.1 | 263.6 | 2.5% | 246.9 | 9.4% |
| EBITDA Margin | 29.5% | 29.9% | 30.2% | ||
| Profit Before Tax | 274.1 | 263.9 | 3.9% | 240.1 | 14.2% |
| Profit After Tax (PAT) | 206.4 | 200.0 | 3.2% | 194.7 | 6.0% |
| EPS (Diluted) | 33.14 | 32.12 | 3.2% | 31.26 | 6.0% |
Q3 FY24 Result Summary
Tata Elxsi Limited has a pride of place amongst the top providers of technology and design services in the world. It provides services across sectors and industries, comprising Broadcast, Automotive, Healthcare, Communications, and Transportation. The main aim of the Company is to guide and support its huge client base to reimagine their services and products via design cognition and the application of digital technology like the Internet of Things (IoT), Mobility, Cloud,
Tata Elxsi is helping customers reimagine their products and services through design thinking and application of prominent digital technologies such as IoT (Internet of Things), Cloud, Mobility, Artificial Intelligence, and Virtual Reality.
Carrying several achievements as it moves from one quarter to the next, Tata Elxsi has performed optimally in yet another quarter, Q3 FY24, in the Company’s prestigious history. With recognitions such as one amongst the top Value Creator for Software and BPM by Dun and Bradstreet, and awards for its NEURON Autonomous Network Platform, the Company has shown its resilience in a seasonally weak quarter through strategic collaborations and robust performance metrics. In Q3, in its EPD verticals, Media & Communication continues to grow in Revenue (37.8%) and segment-wise Revenue is the highest in Embedded Product Design (86%). The Company is poised to go further and farther with its expertise in deep domain with more than 30 years of product development and technology experience.
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Source: Tata Elxsi – Investor Presentation on BSE
