Bengaluru-based technology and design company Tata Elxsi has reported improvement in financial performance in Q2 FY2024. The company reported revenue of Rs 881.7 crore, up 15.5 percent YoY and net profit of Rs 200 crore, up 14.8 percent YoY.
The robust growth can be attributed to the improvement in performance in transportation business and industrial design division.
Manoj Raghavan, CEO and MD Tata Elxsi said: “We are happy to report a healthy performance in the second quarter with a top-line growth of 3.7% QoQ and 15.5% YoY in a challenging quarter for the industry. Our EBITDA has grown 4.8% QoQ and 16.3% YoY and our EBITDA margin has improved by 31 bps to 29.9%. This underlines our strong focus on delivery and operational excellence, key account management and differentiated offerings.”
Tata Elxsi’s Transportation business, which accounts for 46.2 percent of the revenue coming from three verticals, witnessed strong growth of 7.1 percent QoQ and 26.1 percent YoY. During the quarter it landed a multi-year large deal for SDV (software defined vehicles) from one of the leading automotive OEMs.
The Healthcare & Lifesciences business registered a growth of 8.5 percent YoY.
“Our Design-Digital strategy is playing out well and has helped our Industrial Design division to cross Rs 100 crore revenue mark for the first time in company history. The division grew by 4.1 percent QoQ and 35.4 percent on a YoY basis, driven by strong demand for design-led engineering services.”
The company says it added 585 employees in the quarter and also focussed on employee retention strategies that helped it improve attrition to 13.7 percent.
