Tata Elxsi reports higher Q2 profit at Rs125.33cr powered by EPD division

The company’s revenue jumped to Rs595.33cr in Q2FY22 from Rs430.17cr yoy.

Oct 25, 2021 09:10 IST India Infoline News Service

Tata Elxsi
Tata Elxsi, amongst the world’s leading providers of design-led technology services, announced its results for the second quarter of FY22 ended September 30, 2021. The company reported ₨595.3cr of revenue from operations for Q2FY22, registering a growth of 38.4% yoy against Rs430.17cr in Q2FY21.

The company’s net profit for the quarter stood at Rs125.3cr, reporting a growth of 58.9% yoy against Rs78.87cr in Q2FY21. EBITDA for the quarter grew 55.6% yoy to Rs183.6cr, while PBT grew 55.5% yoy to Rs171cr.

The company’s growth was powered by Embedded Product Design (EPD), the company’s largest division, at 10.6% qoq and 34.4% yoy in constant currency terms. Within EPD, the Automotive business posted a smart double-digit qoq growth of 12.9% and 29% yoy, led by Electric and Autonomous technologies, and a strong deal inflow and pipeline provides confidence for continued growth in the transportation vertical, the company said in a filing on Friday.

Media & Communications delivered another steady quarter with 7.8% qoq and 32.9% yoy growth respectively, while Healthcare grew 6.6% qoq and 72.3% yoy.

The Design business (IDV) continues to win new customers and fuel strategic deal wins in design-led digital projects for the company. This quarter saw an impact due to a shift in program timelines for a large ongoing design-led innovation project, with a qoq decline of 14.2%. On a yoy basis, IDV reported a smart growth of 64.5%.

“We are pleased to report another quarter of steady growth across industry verticals and continue to execute strongly on both top line and bottom line. We are seeing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers in EV and autonomous technologies, underscoring our technology and engineering leadership,” Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said.

“The overall growth was fuelled by digital and platform-led deals and demonstrate the differentiation and relevance of our design-led approach and technology capabilities to the product and technology transformation agendas of customers in our key verticals. The superior topline and bottom-line performance was supported by industry-leading operational excellence and talent retention. We also added over 700 new Elxsians this quarter, which represents almost 9% of our headcount in the previous quarter. We are entering the third quarter with a strong order book and a healthy deal pipelineacross key markets and industries,” Raghavan added.

At around 9.32 am, Tata Elxsi Ltd was trading at Rs5,813 per piece down by Rs220.55 or 3.66% from its previous closing of Rs6,033.55 per piece on the BSE.

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