Tata Elxsi Reports Strong Q1 Growth, Led by Transportation Sector

For the quarter ending 30th June 2024, Tata Elxsi reported Rs. 926.5 Cr in operating revenue, marking a 2.3% QoQ growth.
Tata Elxsi Reports Strong Q1 Growth, Led by Transportation Sector

Bangalore: Tata Elxsi (BSE: 500408 | NSE: TATAELXSI), a global leader in design-led technology services, announced its first-quarter results for the period ending 30th June 2024.

For the quarter ending 30th June 2024, Tata Elxsi reported Rs. 926.5 Cr in operating revenue, marking a 2.3% QoQ growth.

Key Highlights for Q1 FY25:

  • Revenue: Rs. 926.5 Cr, up 2.3% QoQ and 9.0% YoY

  • Operating (EBITDA) Margin: 27.2%

  • Net Margin (PBT): 26.3%

  • Profit Before Tax (PBT): Rs. 252.4 Cr, up 1.6% YoY

Business Performance:

  • Transportation: Strong growth of 5.3% QoQ in constant currency, driven by new deals and the expansion of Software Defined Vehicle (SDV) engagements.

  • Media and Communications: Increased by 0.5% QoQ in constant currency, showing resilience in a challenging environment.

  • System Integration Services: Achieved a robust growth of 8.7% QoQ in constant currency.

Manoj Raghavan, CEO and Managing Director of Tata Elxsi, expressed satisfaction with the Q1 performance, noting a 2.3% QoQ and 9.0% YoY growth. He highlighted the company's operational excellence and fiscal discipline, despite exceptional one-off expenses and changes in SEZ benefits impacting the effective tax rate.

Raghavan emphasized the strong performance of the Transportation business, which saw a 5.3% QoQ and 20.3% YoY growth in constant currency, now representing over 50% of the Software Development & Services sector. He also noted the resilience of the Media & Communication business and the innovative deal secured with a North American telecom operator.

While the Healthcare & Lifesciences sector faced a 4.3% QoQ decline in constant currency due to project renewal delays, the company continues to add high-profile customers and innovative service offerings. Raghavan expressed pride in Tata Elxsi's work on the India Neurodiversity Platform with Tata Power trust, powered by TEcare.

Investments in digital, AI, and Gen AI technologies are targeting efficiency and quality across verticals, with notable innovations in the healthcare sector.

Tata Elxsi enters the second quarter with a robust deal pipeline, ongoing growth in the transportation sector, and new customer acquisitions, confident in maintaining its momentum across all verticals.

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