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.