Tata Elxsi rides transportation growth wave

This rise in the transportation business coincides with a 21.6% jump in Tata Elxsi's net profit to Rs 792.2 crore for FY24 compared to Rs 755.2 crore the year before.

By Shahkar Abidi calendar 23 Apr 2024 Views icon8531 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Tata Elxsi rides transportation growth wave

Tata Elxsi Ltd., a design and technology services company, saw its transportation segment surge 24.6% year-on-year in FY24, now accounting for nearly half (49.9%) of its Software and Design Services (SDS) revenue. The company attributed the growth to a string of deals in electric vehicles, software-defined vehicles (SDVs), and with original equipment manufacturers (OEMs).

This rise in the transportation business coincides with a 21.6% jump in Tata Elxsi's net profit to Rs 792.2 crore for FY24 compared to Rs 755.2 crore the year before. Operating revenue also climbed 13% to Rs 3552.1 crore from Rs 3144.7 crore.

"Our transportation business grew strongly at 24.6% YoY, and now accounts for 49.9% of our overall SDS revenues," said Manoj Raghavan, CEO and Managing Director, Tata Elxsi. 

"OEMs now constitute over 56% of the transportation business, and we are now embedded into the SDV programs of five global OEMs".

According to the company's investor presentation, the U.S. market contributes the most (38.3%) to its business, followed by Europe (39.6%) and the rest of the world (22.1%).

Highlighting key deals, Tata Elxsi revealed being chosen as a strategic partner for the SDV organization of a major global automotive OEM. Additionally, they secured a strategic partnership with another global OEM for infotainment, ADAS, and EV software within their SDV program. They also won the TETHER connected vehicle platform project from a top-tier automotive OEM and secured a contract to design and develop a Level 3+ autonomous driving system for commercial vehicles.


 

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