Tata Elxsi delivers healthy growth in Q1 FY25

On July 10, 2024, Tata Elxsi announced strong Q1 FY25 results, with revenue growing 2.4% quarter-on-quarter (QoQ) in constant currency terms.

The company reported operating revenue of ₹926.5 crore, reflecting a 2.3% QoQ and 9.0% year-on-year (YoY) growth. The operating (EBITDA) margin stood at 27.2%, while the net margin (PBT) was 26.3%, with a profit before tax (PBT) of ₹252.4 crore, marking a 1.6% YoY increase.

The transportation sector experienced robust growth, with a 5.3% QoQ rise in constant currency, driven by new deals and the ramp-up of Software Defined Vehicle (SDV) engagements. Media and Communications saw a modest growth of 0.5% QoQ in constant currency despite challenging conditions in the media and telecom industries. System Integration services performed strongly, with an 8.7% QoQ growth in constant currency.

Mr Manoj Raghavan, CEO and Managing Director of Tata Elxsi, commenting on the company’s performance in the first quarter of FY25, said, “We are happy to report a healthy performance in the first quarter with top-line growth of 2.3% QoQ and 9.0% YoY. We executed very well on operational excellence and fiscal discipline in this quarter towards bottom-line performance, despite the impact of an exceptional one-off expense in the quarter and an increase in the effective tax rate with the change in SEZ benefits for one of our facilities.”

He further added, “Our investments in building the talent pool over the past few quarters provide us with strong levers to power topline growth and manage our bottom line. Coupled with our differentiated offerings, offshore delivery and operational excellence, we are confident of returning to our preferred margin band over the year.”

About Tata Elxsi

Tata Elxsi is a top provider of design and technology services for industries like automotive, broadcast, communications, healthcare, and transportation. They help customers rethink their products and services using design thinking and digital technologies such as IoT, cloud computing, mobility, virtual reality, and artificial intelligence.

On July 11, 2024, Tata Elxsi’s share price opened at ₹7,021.00, touching the day’s high at ₹7,037.90 as of 09:30 AM on the NSE.

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