Tata Elxsi Q3 performance up 6% YoY; net profit jumps Rs 206.4 crore

Design and technology services provider Tata Elxsi released its Q3FY24 results on Tuesday and reported a 6% year-on-year (YoY) increase in net profits which stood at Rs 206.4 crore during the quarter ending December 2023 from Rs 194.6 crore during the year-ago period. The revenue from operations of the company jumped 11% YoY to Rs 914.2 crore from Rs 817.7 crore during the same period last fiscal year.

Sequentially, the net profit of the company rose 3% from Rs 200.2 crore reported during the quarter ending September 2023. The revenue from operations of the company witnessed a 3% jump quarter-on-quarter as that stood at Rs 881.6 crore during Q2FY24.

In the nine-month period from March-December 2023, Tata Elxsi's net profit increased 7% from Rs 553.6 crore in December 2022 to Rs 595.3 crore during the March-December 2023 period. In terms of revenue from operations, the growth was 16% from Rs 2,355 crore in December 2022 to Rs 2,734.5 crore in the March-December 2023 period.

Segment Results

In the October-December quarter, the transportation sector grew 2.7% quarter-over-quarter (QoQ) and 15.6% year-over-year (YoY). The company said that the positive trajectory can be attributed to significant deals and a sustained uptick in Software Defined Vehicles (SDV).

The healthcare industry experienced a growth of 4.6% QoQ and 13% YoY, propelled by advancements in new product engineering and regulatory services. The media and communications sector faced challenges, with a modest 0.6% QoQ growth and a 3.4% YoY increase, indicative of a somewhat deteriorated industry environment, the company said.

In the realm of industrial design, Design Digital emerged as a frontrunner, leading to an impressive 12.8% QoQ growth and 25% YoY expansion in the business.
“While we have continued to invest strongly in talent addition with over 350 Elxsians in this quarter and a net of 1,357 Elxsians over the past nine months, we have done well to maintain our EBITDA well over the 29% band. This underlines our strong focus on delivery and operational excellence, and our confidence in the future and long-term demand for our differentiated offerings," MD and CEO Manoj Raghavan said.

"As we step into the last quarter of this financial year, the confidence of our customers in our differentiated Design Digital proposition and delivery excellence, and a strong deal pipeline provide us the foundation for sustained growth," the top officer added.