Earnings Review
Tata Elxsi Dec quarter net falls most in 17 quarters
This story was originally published at 19:18 IST on 9 January 2025
Register to read our real-time news.Informist, Thursday, Jan. 9, 2025
Please click here to read all liners published on this story
--Tata Elxsi Oct-Dec net profit INR 1.99 bln vs INR 2.29 bln quarter ago
--Tata Elxsi Oct-Dec revenue INR 9.39 bln vs INR 9.55 bln quarter ago
--Tata Elxsi Apr-Dec net profit INR 6.13 bln vs INR 5.95 bln year ago
--Tata Elxsi: EBITDA margin 26.3% in Oct-Dec
--Tata Elxsi Oct-Dec revenue from India up 21.9% on year
--Tata Elxsi Oct-Dec revenue from Japan, emerging markets up 66.8% on year
--Tata Elxsi Oct-Dec EBIT INR 2.21 bln, down 7.8% on quarter
--Tata Elxsi Oct-Dec EBITDA INR 2.47 bln, down 7.4% on quarter
–-Tata Elxsi Oct-Dec attrition rate 12.4% vs 12.5% qtr ago
--Tata Elxsi employee headcount 12,878 as on Dec 31 vs 12,793 quarter ago
--Tata Elxsi Oct-Dec revenue flat on quarter in constant currency terms
--Tata Elxsi Oct-Dec transportation ops sales up 0.5% QoQ constant currency
--Tata Elxsi Oct-Dec media, comm ops sales up 0.4% QoQ in constant currency
--Tata Elxsi Oct-Dec health, lifescience sales up 1.1% QoQ constant currency
--Tata Elxsi: Furloughs affected media, comm vertical in Oct-Dec
--Tata Elxsi: Got new customers in healthcare vertical during Oct-Dec
By Akshita Kumar
MUMBAI – Tata Elxsi Ltd. Thursday reported lower-than-expected net profit and revenue for the December quarter. On a sequential basis, this is the biggest contraction in Tata Elxsi's bottom line in 17 quarters. The company's revenue contracted sequentially after growing for two consecutive quarters.
The company reported a net profit of INR 1.99 billion for the quarter, down 13.3% from INR 2.29 billion a quarter ago. Analysts had expected the company to report a net profit of INR 2.06 billion. The company's net profit fell 3.6% on year.
The company's top line came in at INR 9.39 billion, down 1.7% sequentially but up 2.7% on year. Analysts had expected the company to report a revenue of INR 9.81 billion for the December quarter.
For the nine months ended Dec. 31, the company's net profit came in at INR 6.13 billion, up 3% from INR 5.95 billion a year ago. The company's revenue for Apr-Dec was INR 28.21 billion, up 6.6% from INR 26.46 billion a year ago. The earnings before interest, tax, depreciation, and amortisation margin was 26.3% in Oct-Dec.
The company's total expenses for the quarter were INR 7.23 billion, up 0.4% on quarter. Employee benefit expenses were INR 5.15 billion, up marginally on quarter. Other expenses came in at INR 1.21 billion, up 6% on quarter. The company's total income was INR 9.79 billion, down 4% on quarter.
For the December quarter, the company's revenue from India rose 22% on year and revenue from Japan and emerging markets grew at 66.8% on year. The company's earnings before interest and tax for the quarter came in at INR 2.21 billion, down 7.8% sequentially. The company's December quarter earnings before interest, taxation, depreciation, and amortisation came in at INR 2.47 billion, down 7.4% on quarter. The company reported an attrition rate of 12.4%, slightly lower than 12.5% for the previous quarter. Its headcount was 12,878 as of Dec. 31, up by only 85 over the previous quarter.
The company's transportation business grew marginally on quarter in constant currency terms, amidst longer deal closure cycles in the automotive industry, Tata Elxsi said in its investor presentation. The media and communications business grew slightly on quarter in constant currency terms in a quarter that is traditionally soft and affected by furloughs. The company's healthcare and life sciences business grew by 1.1% sequentially in constant currency terms with new customer wins and traction from digital and generative artificial intelligence-powered offerings.
In the December quarter, Tata Elxsi won a multi-year deal from a US-based management services organisation to manage its portfolio of applications that will be ramped up over the next two quarters. The company launched an offshore development centre in Pune for Suzuki Motor Corp., Japan, during the quarter.
Tata Elxsi was selected to deliver advanced driver assistance system level-3 function development over a multi-year programme for a new-age original equipment manufacturer, the company said in its press release. It was also selected in the December quarter to develop a next-generation connectivity platform for off-highway operations for a global leader in off-highway vehicles.
The company said it expects large automotive deal wins in the next quarter that will see continued ramping up. On Thursday, shares of Tata Elxsi closed 0.5% lower at INR 6,439.95 on the National Stock Exchange. End
US$1 = INR 85.84
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
