Tata Elxsi Ltd. Results

Q3FY25 Quarterly Result Announced for Tata Elxsi Ltd.

IT Consulting & Software company Tata Elxsi announced Q3FY25 results Revenues from operations at Rs 939.2 crore. Operating EBITDA at 246.6 crore, EBITDA Margin at 26.3%. Profit Before Tax (PBT) at Rs 255.8 crore, PBT Margin at 26.1%. Profit After Tax (PAT) at Rs 199.0 crore, PAT Margin at 20.3%. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said: “We are happy to report a steady quarter with revenue from operations at Rs 939.2 crore. During the quarter, EBITDA margins stood at 26.3% and the PBT margin was reported at 26.1%. We continue to see positive outcomes of our strategic business focus on Japan, emerging markets and capitalising on the India opportunity. During the quarter, our revenue from India has grown by 21.9% YoY, while Japan and emerging markets grew at 66.8% YoY. This will serve us well over the next few quarters even as we navigate geopolitical uncertainty, currency volatility and industry specific challenges in Europe and US. The automotive industry has seen significant business challenges in the past few months, with OEMs especially in the US and Europe reporting sales and growth challenges in their major markets. This has impacted new deal closures, and Tier 1 supplier spend. Amidst this business environment, Tata Elxsi continues to do well to win and execute on the large deals won over this year and demonstrate differentiated value to customers, to protect and grow revenues in a difficult quarter for the entire automotive industry. During the quarter, we announced an Offshore Development Centre for Suzuki Corporation, Japan to support their global technology, software and engineering development. Suzuki’s Chief Technology Officer, Katsuhiro Kato highlighted the importance of the centre as a strategic and core component of Suzuki’s innovation strategy, helping it accelerate software and virtual development across Connected, Autonomous and Electric technologies. We are delighted to be launching our AVENIR SDV software suite at the CES 2025 Conference in Las Vegas, the premier global showcase for technology innovation. AVENIR encompasses a cloud-native virtual development platform and a hybrid global validation platform, and is powered by the Snapdragon Digital Chassis platform, in partnership with Qualcomm. We offer a compelling proposition of a ready-to-adopt solution, coupled with deep digital and software expertise and scaled talent base, to help global OEMs shift-left and accelerate their SDV and future mobility roadmaps. Our Media & Communication business reported QoQ CC growth in a quarter that is typically soft and affected by furloughs. We are positioned well to help customers in the media, entertainment and telecom industry on all three levers of growth, efficiency, and innovation. We won a large multi-year deal with a US headquartered MSO to develop and manage their portfolio of applications and expect to ramp this up over the next few quarters. We are positioned well in some very large deals across the world, with decisions and outcomes expected in the coming quarter and beyond. Our Healthcare & Lifesciences business reported growth of 1.1% QoQ. We continue to win new marquee healthcare customers, and our Gen AI powered regulatory, digital engineering and sustainability offerings are seeing significant traction in the market. Our Systems Integration (SIS) business witnessed decision delays in some large projects that had a significant impact on revenues in the quarter. While we are aiming to win and execute them over this quarter and beyond, we continue to work on pivoting the business away from project-based to annuity and service based revenue streams. We step into the fourth quarter of this financial year with the confidence of large automotive deal wins in the year and quarter that will see continued ramp-ups even as we navigate the current volatility in the automotive market; the stability and return to growth in our healthcare and media & communications verticals, and large strategic deals in the pipeline across all our key verticals”.

Q2FY25 Quarterly Result Announced for Tata Elxsi Ltd.

IT Consulting & Software company Tata Elxsi announced Q2FY25 results Financial Highlights: Revenues from operations at Rs 955.1 crore, + 3.1% QoQ Operating (EBITDA) Margin at 27.9%; + 70 bps QoQ Profit Before Tax (PBT) at Rs 298.7 crore, +18.3% QoQ Profit After Tax (PAT) at Rs 229.4 crore, +24.6% QoQ Transportation grew strongly at 8.8% QoQ, aided by large deals and growth in SDV and OEM business Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance in Q2FY25, said: “We are happy to report a steady quarter with revenue from operations growing to Rs 955.1 crore, registering a QoQ growth of 3.1%. Our operational and offshore delivery excellence, fiscal discipline, and differentiated offerings, have contributed to our EBITDA margins expanding by 70 basis points to 27.9% for the quarter. Our PAT grew by 24.6% QoQ to 229.4 crore, with the superior bottom-line performance further aided by R&D; incentives and tax credits from previous years. Our strategic focus on expanding our business in Japan, emerging markets and capitalising on the India opportunity, is now starting to significantly contribute to our growth. During the quarter, our revenue from India has grown by 31.2% YoY, while Japan and emerging markets grew smartly at 81.9% YoY. Our transportation business continues to power growth for the company, registering a strong revenue growth of 8.8% QoQ. Our deep and scaled ADAS, Connected, Electric and Software Defined Vehicle (SDV) capabilities are helping us win large deals with global OEMs across the world, positioning us well for the continued transformation of the automotive industry. We won a landmark US$ 50 million multi-year deal from a global OEM headquartered in Europe, which encompasses SDV and multiple domains of automotive engineering. This strategic engagement will enable SDV platform development and the next generation of mobility for this world-leading brand. During the quarter, we also announced a strategic engagement with Nidec Corporation, Japan to support their group technology initiatives, especially for the automotive market. We also launched a global Next-gen Mobility Innovation Center in Bengaluru, in partnership with Emerson. Our Media & Communication business declined marginally by 1% QoQ, even as we see green shoots for growth, led by our network transformation offerings and digital / Gen AI led innovation for the future of media. I am especially delighted with our world’s first RDK Broadband implementation for Qualcomm, which allows global telecom operators to adopt this first-of-its kind solution to deliver high-speed home and enterprise broadband services through 5G networks. We also won a strategic AI CoE deal with a leading MEA operator, which will support their company-wide transformation initiatives including re-imagining products, customer experience, operations, customer support and software development. Our Healthcare & Lifesciences business reported a decline in topline by 10.4% QoQ. This is due to delay in renewal and start of some new programs with our leading US based customer. We have added some key new customers, including a global renal care leader and a US headquartered healthtech AI leader, which should scale over the next few quarters. Skanray, a leading global MedTech R&D; and Manufacturing company specialising in diagnostic imaging, critical care and surgery/OT solutions, has chosen Tata Elxsi as a strategic partner for advanced surgical imaging core technology and software platform development. This underscores our unique ability to bring together design, cloud and AI to re-imagine healthcare diagnostics and patient care. We also launched a state-of-the-art robotics innovation lab in Frankfurt, in partnership with Denso Robotics and AATech, designed to revolutionize automation and robotics for various sectorsincluding precision surgery and healthcare. We are witnessing an unprecedented convergence of design, software and digital technologies such as AI, in how enterprises are re-imagining their products, services and customer experience. Tata Elxsi is uniquely placed with our design-digital capabilities coupled with deep domain and software capabilities, to demonstrate and create value, win new customers and engage deeper with our global customer base. We step into the third quarter of this financial year with the confidence of our design-digital proposition, a healthy deal pipeline, continued growth in our transportation business, large deal wins and recovery in our other key verticals.”

Q1FY25 Quarterly Result Announced for Tata Elxsi Ltd.

IT Consulting & Software company Tata Elxsi announced Q1FY25 results: Financial Highlights: Revenues from operations at Rs 926.5 crore, + 2.3% QoQ, + 9.0% YoY Operating (EBITDA) Margin at 27.2%; Net Margin (PBT) at 26.3% Profit Before Tax (PBT) at Rs 252.4 crore, +1.6% YoY Business Highlights: Transportation grew strongly at 5.3% QoQ CC, aided by deal wins and ramp-up of Software Defined Vehicle (SDV) engagements Media and Communications grew 0.5% QoQ CC, performing creditably in a difficult environment for the media and telecom industry System Integration services grew strongly at 8.7% QoQ CC Manoj Raghavan, CEO and Managing Director, 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 a 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. Our investments in building the talent pool over the past few quarters provides 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. Our Transportation business reported a strong growth of 5.3% QoQ and 20.3% YoY in constant currency, and now accounts for more than 50% of our Software Development & Services business. We believe we are well positioned to capture growth opportunities in the coming quarters as we continue to enable the continued transformation of the automotive industry and Software Defined Vehicles. Our Media & Communication business has done well in a difficult business environment for this industry, growing 0.9% QoQ in actual currency and 0.5% QoQ in constant currency. We are building on our strong customer relationships, even as we roll out innovative growth and efficiency offerings for this industry. I am especially delighted with the NEURON platform-led deal from a leading North American telecom operator for their network transformation. Our Healthcare & Lifesciences business reported a decline in topline by 4.3% QoQ in constant currency. This is largely due to delay in renewals of some projects at one of our large customers. We continue to add marquee logos and some exciting start-ups to our customer base, laying the foundation for sustained long-term growth along with next-gen service offerings. I am proud of our association and work with Tata Power trust on the India Neurodiversity Platform which is being rolled out across multiple districts across the country. This is powered by TEcare, Tata Elxsi’s Digital Therapeutics solution. We are investing strongly in digital, AI and Gen AI technologies across our verticals, targeting efficiency and quality in product engineering, as well as novel applications of Gen AI combined with domain and design expertise to solve complex business, product and engineering problems. A great example is from our healthcare business where we have combined our depth of domain and product knowledge with Gen AI, to pioneer an innovative approach to sustainability and material replacement in medical devices and win a strategic deal with a leading manufacturer. We step into the second quarter of this financial year with the confidence of a healthy deal pipeline, continued growth in our transportation business, new customer wins and expansion of business with strategic customers across verticals.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Tata Elxsi Ltd.

IT Consulting & Software company Tata Elxsi announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenues from operations amounted to Rs 905.9 crore, showing a decrease of 0.9% QoQ but an increase of 8.1% YoY. Operating revenue growth was -0.6% QoQ and +7.2% YoY on a constant currency basis. EBITDA Margin was at 28.8%, with PBT at 27.9%. Profit Before Tax (PBT) reached Rs 262.4 crore, reflecting a 4.9% YoY increase. FY24 Financial Highlights: Revenues from operations reached Rs 3,552.1 crore, marking a 13.0% YoY increase. EBITDA Margin stood at 29.5%, with Profit before Tax (PBT) margin at 28.5%. PBT experienced growth of 11.9% to Rs 1,048.7 crore. Software Development and Services (SDS) saw a YoY growth of 9.3% in constant currency. System Integration & Support (SIS) witnessed a YoY growth of 18.6% in constant currency. The Board of Directors have recommended a final dividend of 700% (Rs 70 per equity share of par value of Rs 10 each) for FY24, subject to approval by the shareholders of the company at the Annual General Meeting. FY24 Industry Highlights: Transportation exhibited strong growth, with a revenue increase of 24.6% YoY, supported by deal wins in Electric, Software Defined Vehicles, and OEMs. Healthcare sustained growth at 10.8% YoY. Media and Communications experienced a modest growth of 0.2% YoY amidst a challenging business environment for the industry. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance in the financial year 2023-24, said: “The financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters. We have done well to maintain an industry-leading EBITDA margin at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1,535 Elxsians through the year. We had laid down a strategy of integrating our design business deeply with our key industry verticals, complementing our software and digital business with a design-led proposition. This is now complete, with a seamless end-to-end proposition from ideation to market introduction. This is enhancing our competitive differentiation, providing early visibility into customer product roadmaps, and croreeating larger downstream development deals. Starting with this quarter, we are reporting this integrated view of design-digital in all three verticals, under the Software and Design Services segment (SDS)."