Tata Elxsi share gains 3% on healthy Q2 results; profit jumps 25% QoQ
Source: Business Standard
Tata Elxsi share price: Shares of Tata Elxsi, the Tata Group’s design and technology arm, were buzzing in trade on Friday, October 11, 2024. Tata Elxsi scrip gained up to 2.80 per cent to hit an intraday high of Rs 7,980.30 per share.
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The company’s profit rose 24.6 per cent quarter-on-quarter (Q-o-Q) to Rs 229.4 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 184.1 crore in the June quarter of financial year 2025 (Q1FY25)
Tata Elxsi’s revenue from operations rose a little over 3 per cent sequentially to Rs 955.1 crore in Q2FY25, from Rs 926.5 crore inQ1FY25.
The company earnings before interest, taxes (Ebit) slipped 6.2 per cent sequentially to Rs 239.2 crore in Q2FY25, from Rs 225.2 crore inQ1FY25. Consequently, Ebit margin expanded 70 basis points (bps) to 25 per cent in Q2FY25, from 24.3 per cent in Q1FY25.
Manoj Raghavan, CEO and managing director, Tata Elxsi said, “We are happy to report a steady quarter with revenue from operations growing to Rs. 955.1 crore, registering a Q-o-Q growth of 3.1 per cent. Our operational and offshore delivery excellence, fiscal discipline, and differentiated offerings, have contributed to our Ebitda margins expanding by 70 basis points to 27.9 per cent for the quarter. Our PAT grew by 24.6 per cent Q-o–Q to 229.4 crore, with the superior bottom-line performance further aided by R&D incentives and tax credits from previous years.”
During the quarter, the company secured $ 50 million multi-year deal from a global OEM headquartered in Europe, which encompasses SDV and multiple domains of automotive engineering.
Established in 1989 as part of the Tata Group, the company operates in over 35 locations across 15 countries. Tata Elxsi specialises in design-led digital engineering, technology development, testing, and systems integration, leveraging advanced technologies such as IoT, cloud, mobility, virtual reality, and artificial intelligence. Its innovative platforms and solutions, including TETHER, TECockpit, and Autom@TE, support a wide range of services, from research and strategy to advanced R&D and deployment.
The company is publicly traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The market capitalisation of Tata Elxsi is Rs 48,867.08 crore, according to BSE. The company falls under the BSE200 category.
At 9:41 AM, Tata Elxsi shares were trading 1.08 per cent higher at Rs 7,846.40 per share. In comparison, BSE Sensex was trading 0.22 per cent lower at 81,433.31 levels.
First Published: Oct 11 2024 | 9:46 AM IST
