Tata Elxsi reports a 3% decline in Q1 net profit

11 Jul 2024 , 11:26 AM

Tata Elxsi Ltd reported a 3% YoY fall in net profit to ₹184.1 Crore for the first quarter ended June 30, 2024. Tata Elxsi reported a quarterly net profit of ₹188 Crore in a regulatory filing.

The net profit declined 6.5% to ₹184.1 Crore from ₹196.9 Crore in March 2024, while revenue increased 2.3%. The company’s revenue from operations climbed by 9% to ₹926.5 Crore, up from ₹850 Crore the previous fiscal year.

Tata Elxsi’s transportation sector increased by 5.3% quarter on quarter in constant currency (QoQ CC), owing to major deal wins and the acceleration of software-defined vehicle (SDV) engagements.

Despite the adverse environment in the media and telecom industries, the sector managed 0.5% QoQ CC growth. Additionally, the company’s system integration services increased by 8.7% QoQ CC.

Manoj Raghavan, CEO and Managing Director of Tata Elxsi stated, “We are pleased to report a robust performance in the first quarter, with top-line growth of 2.3% quarter on quarter and 9% year on year. In constant currency, our healthcare & life sciences business’s topline fell 4.3% quarter-on-quarter. This is mostly due to delays in the renewal of some contracts at one of our large customers.”

Tata Elxsi began operations on May 5, 1989, in Bangalore, India’s Silicon Valley, to develop and promote applications in electronics, embedded systems, and software. The mission was to stimulate innovation in the rapidly growing IT business and expedite the adoption of cutting-edge technologies.

At around 11.22 AM, Tata Elxsi was trading 1.89% lower at ₹6,985 per piece, against the previous close of ₹7,119.45 on NSE. The counter touched an intraday high and low of ₹7,037.90, and ₹6,931.35, respectively.

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