On Tuesday, Tata Elxsi unveiled its Q3FY24 financial results, revealing a 6% year-on-year (YoY) increase in net profits, reaching ₹206.4 crore for the quarter ending December 2023, up from ₹194.6 crore in the same period last year. The company’s revenue from operations also marked a notable 11% YoY surge, reaching ₹914.2 crore compared to ₹817.7 crore in the corresponding period of the previous fiscal year.
Looking at sequential performance, Tata Elxsi reported a 3% increase in net profit from ₹200.2 crore in the quarter ending September 2023. The revenue from operations witnessed a 3% quarter-on-quarter jump, standing at ₹881.6 crore during Q2FY24.
In the nine-month period from March to December 2023, Tata Elxsi’s net profit registered a 7% growth, climbing from ₹553.6 crore in December 2022 to ₹595.3 crore during the March-December 2023 period. In terms of revenue from operations, there was a substantial 16% growth from ₹2,355 crore in December 2022 to ₹2,734.5 crore in the March-December 2023 period.
Breaking down the performance by sector in the October-December quarter, the transportation sector experienced a 2.7% quarter-over-quarter (QoQ) growth and a 15.6% year-over-year (YoY) increase. This positive trajectory was attributed to significant deals and a sustained uptick in Software Defined Vehicles (SDV). The healthcare industry saw a 4.6% QoQ growth and a 13% YoY increase, fueled by advancements in new product engineering and regulatory services. However, the media and communications sector faced challenges, with a modest 0.6% QoQ growth and a 3.4% YoY increase, reflecting a somewhat challenging industry environment, as per the company’s assessment.
Tata Elxsi’s Managing Director and CEO, Manoj Raghavan, highlighted the company’s strong focus on delivery and operational excellence, emphasizing confidence in the future and long-term demand for their unique offerings. During this quarter, Tata Elxsi added over 350 Elxsians to its talent pool, with a net addition of 1,357 over the past nine months. The company maintained its EBITDA well above the 29% band, reinforcing its commitment to sustained performance.
