Tata Elxsi, a tech company, recently shared its results for the last quarter, and there were some ups and downs. Their net profit, which is the money they made after costs, fell by 3% to Rs 199 crore from Rs 206 crore last year. However, their revenue, or the total money they earned from sales, grew by 3%, reaching Rs 939 crore compared to Rs 914 crore last year.
In this period, Tata Elxsi’s earnings before interest, taxes, and other costs (known as EBITDA) was Rs 247 crore, with a margin of 26.1%. Profit before tax (PBT) was Rs 26 crore, with margins of 26.3%.
Manoj Raghavan, the CEO, mentioned that they are positively focusing on business opportunities in Japan, emerging markets, and India.
The company said that the automotive industry faced big challenges lately, particularly in sales growth in the US and Europe, making it tough for companies to close new deals or spend much.
Their media and communications department still saw growth despite the usual slow period due to holidays. The company signed an important multi-year deal with a US company to help manage its applications, which they plan to expand.
In the healthcare sector, there was a slight growth of 1.1% as well, attracting new clients. Their Gen AI offerings in regulation, digital engineering, and sustainability are becoming popular.
On the downside, the systems integration part of the business faced delays in decision-making, affecting revenue for the quarter.
Last Thursday, Tata Elxsi’s stock dropped by 0.33%, ending the day at Rs 6451.95. Over the past year, the stock has fallen 25.49%, lagging behind its competitors by 58.46%. However, it has given impressive returns of 660% over the last five years.
Founded in 1989, Tata Elxsi is a mid-cap company valued at Rs 40,107.76 crore, operating in the IT Software sector. They are known worldwide for providing technology and design services in areas like automotive, healthcare, and aerospace.
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