Transportation business grows strongly at 5.3%
QoQ in CC terms
BANGALORE, India, July 10,
2024 /PRNewswire/ -- Tata Elxsi (BSE: 500408 | NSE:
TATAELXSI), amongst the world's leading providers of design led
technology services, announced its first quarter results for the
period ending 30th June
2024.
For the quarter ending 30th June 2024, company reported Rs. 926.5 Cr of
operating revenue, a growth of 2.3% QoQ.
Highlights of the Quarter Ended 30th June 2024:
- Revenues from operations at Rs. 926.5 Cr, + 2.3% QoQ, +
9.0% YoY
- Operating (EBITDA) Margin at 27.2%; Net Margin (PBT) at
26.3%
- Profit Before Tax (PBT) at Rs. 252.4 Cr, +1.6% YoY
Business Highlights:
- Transportation grew strongly at 5.3% QoQ CC, aided by deal
wins and ramp-up of Software Defined Vehicle (SDV) engagements
- Media and Communications grew 0.5% QoQ CC, performing
creditably in a difficult environment for the media and telecom
industry
- System Integration services grew strongly at 8.7% QoQ
CC
Mr. Manoj Raghavan, CEO and
Managing Director, Tata Elxsi,
commenting on the company's performance in the first quarter of
FY25, said:
"We are happy to report a healthy performance in the first
quarter with a top-line growth of 2.3% QoQ and 9.0% YoY.
We executed very well on operational excellence and fiscal
discipline in this quarter towards bottom-line performance, despite
the impact of an exceptional one-off expense in the quarter and an
increase in the effective tax rate with the change in SEZ benefits
for one of our facilities. Our investments in building the talent
pool over the past few quarters provides us with strong levers to
power topline growth and manage our bottom line. Coupled with our
differentiated offerings, offshore delivery and operational
excellence, we are confident of returning to our preferred margin
band over the year.
Our Transportation business reported a strong growth of 5.3% QoQ
and 20.3% YoY in constant currency, and now accounts for more than
50% of our Software Development & Services business. We believe
we are well positioned to capture growth opportunities in the
coming quarters as we continue to enable the continued
transformation of the automotive industry and Software Defined
Vehicles.
Our Media & Communication business has done well in a
difficult business environment for this industry, growing 0.9% QoQ
in actual currency and 0.5% QoQ in constant currency. We are
building on our strong customer relationships, even as we roll out
innovative growth and efficiency offerings for this industry. I am
especially delighted with the NEURON platform-led deal from a
leading North American telecom operator for their network
transformation.
Our Healthcare & Lifesciences business reported a decline in
topline by 4.3% QoQ in constant currency. This is largely due
to delay in renewals of some projects at one of our large
customers. We continue to add marquee logos and some exciting
start-ups to our customer base, laying the foundation for sustained
long-term growth along with next-gen service offerings. I am proud
of our association and work with Tata
Power trust on the India Neurodiversity Platform which is
being rolled out across multiple districts across the country. This
is powered by TEcare, Tata Elxsi's Digital Therapeutics
solution.
We are investing strongly in digital, AI and Gen AI technologies
across our verticals, targeting efficiency and quality in product
engineering, as well as novel applications of Gen AI combined with
domain and design expertise to solve complex business, product and
engineering problems. A great example is from our healthcare
business where we have combined our depth of domain and product
knowledge with Gen AI, to pioneer an innovative approach to
sustainability and material replacement in medical devices and win
a strategic deal with a leading manufacturer.
We step into the second quarter of this financial year with the
confidence of a healthy deal pipeline, continued growth in our
transportation business, new customer wins and expansion of
business with strategic customers across verticals."
About Tata Elxsi
Tata Elxsi is amongst the world's leading providers of design
and technology services across industries including Automotive,
Broadcast, Communications, Healthcare and Transportation.
Tata Elxsi is helping customers reimagine their products and
services through design thinking and application of digital
technologies such as IoT (Internet of Things), Cloud, Mobility,
Virtual Reality and Artificial Intelligence. For more information,
please visit www.tataelxsi.com
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SOURCE Tata Elxsi