Tata Elxsi Ltd's Q3FY19 standalone net profit declines 19.7% qoq to Rs66cr

The company’s standalone revenue stood at Rs407cr, up 1% qoq and 17.8% yoy.

Jan 08, 2019 07:01 IST India Infoline Research Team

Tata Elxsi Ltd Q3FY19

Standalone Results Q3FY19: (Rs in cr)

Q3FY19 QoQ (%)
Revenue 407.01 1.0
EBITDA 97.11 [3.5]
EBITDA Margin (%) 23.9 [113]
Net Profit (adjusted) 65.99 [19.7]
***EBITDA margin change is bps
Tata Elxsi reported a muted set of number for Q3FY19. Revenue grew by 1.0% qoq to Rs407cr. EBIT came in at Rs97cr, down 3.5% qoq. EBIT margin contracted by 113bps qoq to 23.9%. Reported PAT declined by 19.7% qoq to Rs66cr.
  • Software development & services revenue grew by 0.5% qoq to Rs394cr. System integration & support services revenue grew by 19.1% qoq to Rs13cr.
  • System Integration has a significant portion of re-sale component, which typically peaks in the 2H (Q4 more specifically).
  • EBIT margin expansion on qoq basis was impacted by change in mix as Software development & services mix declined from 97.2% to 96.7% on qoq basis.
  • Software development & services margins declined by 737bps qoq to 25.7% and System integration & support services margins expanded by 18 bps qoq to 17.6%.
  • PAT growth on qoq basis was also impacted by higher other income of Rs23cr in Q2FY19 vs. negative other income (-Rs3cr) in Q3FY19.
  • Other income was negative on account of exchange loss of Rs12cr in Q3FY19 vs. gain of Rs15cr in Q2FY19
  • Depreciation expense increased by 2.2% qoq.

Technical View:

Tata Elxsi Ltd is currently trading at Rs. 969, down by 10.25 points or 1.05% from its previous closing of Rs. 979.25 on the BSE.
The scrip opened at Rs. 974 and has touched a high and low of Rs. 990.50 and Rs. 960.10 respectively. So far 34,46,298 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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