Bengaluru-headquartered technology and design provider Tata Elxsi has announced its financial result for Q1 FY2024. The company reported revenue of Rs 850 crore, up 17 percent YoY, net profit of Rs 188 crore, (+2% YoY) compared to Rs 184 crore for the same period last year.
The company’s financial performance was also altered due to the increase in Effective Tax Rate (ETR) on account of lower tax exemption due to the completion of 5 years for 2 of its SEZ units, impacting PAT Margins.
In terms of business, Tata Elxsi’s industrial design and visualization division saw a growth of 41.1 percent YoY in constant currency terms. The transportation segment continues to show healthy growth, registering a revenue growth of 17 percent YoY in constant currency terms, and a healthy large deal pipeline across SDV and EV.
Manoj Raghavan, CEO and MD, Tata Elxsi said, “We are happy to report a healthy growth of 17.1% YoY in the current macro-economic environment, while delivering industry-leading EBITDA margin of 29.6%. While the overall global economic outlook remains challenging, our customer focus and targeted efforts to keep the growth momentum going is showing good results. In the Transportation business, we continue to drive differentiated software capability and scale, and see good traction and a strong deal pipeline, especially in Software Defined Vehicles and EV. While some deal closures were delayed in this quarter, we won significant new deals including a strategic multi-year multi-million dollar deal with a leading Asian OEM for their SDV platform and software development, and a multi-country licensing and deployment of our Connected vehicle platform with a global Top 5 OEM.”
“To expand our automotive and smart mobility focus in North America, we have opened an Innovation Hub and nearshore engineering centre in Troy, Michigan that will innovate along with leading institutes and technology ecosystem in the region. We also signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology, Guwahati (IIT-G) to jointly work on developing and commercializing state-of-the-art solutions for the fast-evolving space of electric mobility,” added Raghavan.
The company also expanded its employee strength by hiring 422 people in this quarter, taking the overall strength to more than 12,000 people, with attrition dropping further to 15.6 percent.
