Tata Elxsi wins major deals in transportation; reports Rs 189 crore in net profit in Q1 FY24

The company reported a 2% increase in net profit to Rs 189 crore during the quarter ending April–June (Q1) of FY24.

Autocar Pro News Desk By Autocar Pro News Desk calendar 17 Jul 2023 Views icon3391 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Tata Elxsi, a global design and technology services company, said on Monday it won major deals in the transportation sector, including a strategic multi-year, multi-million USD deal with a leading Asian OEM for their SDV platform and software development and a multi-country licencing and deployment of its connected vehicle platform with a global Top 5 OEM. The company did not reveal the names of the customers due to confidentiality clauses.

The company reported a 2% increase in net profit to Rs 189 crore during the quarter ending April–June (Q1) of FY24. The revenue from operations grew by 17% to Rs 850 crore during the same period, with 17% of the contribution coming from the transportation sector.

The company also said it opened an Innovation Hub and nearshore engineering centre in Troy, Michigan, to expand its automotive and smart mobility focus in North America.

Manoj Raghavan, CEO and Managing Director of Tata Elxsi, said the company is seeing "good traction and a strong deal pipeline" in the transportation sector, especially in software-defined vehicles and EVs. "As we step into the second quarter of this financial year, the confidence of our customers in our differentiated Design Digital proposition and delivery excellence, and a strong deal pipeline, especially in the automotive, healthcare, and design businesses, provide us the confidence and foundation for accelerating growth through the year," Raghavan said.

As per analysts, the transportation vertical at Tata Elxsi has been growing strongly. In the past two years, it has grown at a compound annual growth rate (CAGR) of 30%.

Autocar Professional had earlier reported that Tata Elxsi is bringing its global intelligence operator assistance system to India. The system, which is used in passenger and commercial vehicles, will be deployed in geo-fenced sectors including mining, ports, agriculture, and airports. The company is already in discussions with a number of infrastructure-related companies to deploy or modify their existing vehicles to make them more autonomous and operationally secure. 

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