Tata Elxsi rises as Q1 PAT jumps 63% YoY to Rs 185 cr

Tata Elxsi gained 2.03% to Rs 7956.40 after the design led technology service provider reported 62.9% rise in net profit to Rs 184.72 crore on 30% increase in revenues from operations to Rs 725.89 crore in Q1 FY23 over Q1 FY21.

The company's net profit and revenue from operations grew 15.4% and 6.5%, respectively, over Q4 FY22 (QoQ). Profit before tax (PBT) stood at Rs 228.02 crore, registering a growth of 3.5% QoQ and 48.1% YoY.

EBITDA in Q1 FY23 grew 7.6% QoQ and 58.8% YoY to Rs 238.2 crore. EBITDA margin stood at 32.8% in Q1 FY23.

The company's growth was primarily volume led, with all three segments of Embedded Product Design (EPD), Industrial Design and Visualization (IDV) and SIS showing robust growth of 6.2%, 6.6% and 19.8% QoQ respectively.

The company's total headcount at the end of the June 2022 crosses 10,000 employee mark with 771 net additions in the quarter.

Transportation grew 6.3% QoQ and 41.8% YoY, aided by large deals and engagements in EV and software defined vehicles. Healthcare continued to witness strong growth of 10% QoQ and 53.6% YoY, driven by digital health and global regulatory services.

Media and Communications reported a quarter of steady and consistent growth at 4.7% QoQ and 29% YoY, aided by continued growth in key accounts and large deals in network transformation and AdTech.

Manoj Raghavan, CEO and managing director of Tata Elxsi said, "We are starting FY23 on a strong note with 6.5% QoQ revenue growth in constant currency. This was all volume-led and supported by robust growth across divisions, verticals and key markets. We continue to maintain and expand our margins with our EBITDA growing at 58.8% YoY and PAT growing at 62.9% YoY.

Our differentiated delivery capability powered by Domain, Design, and Digital, is helping us continue to win deals which are of strategic importance to our customers.

I am delighted that the Tata Elxsi family is now over 10,000 people strong. We added 771 employees on a net basis in the quarter, more than doubling from the previous quarter. This has been aided by concerted efforts in reinforcing our employer brand proposition and employee engagement that have helped reduce our attrition rate in the quarter. We are also expanding our delivery presence with a new center in Kozhikode.

We are taking a seminal role in fostering future design thinkers and innovators for sustainability, with the launch of iGNITE - a global design and innovation contest for sustainable design, coinciding with the World Industrial Design Day on 29th June.

I am delighted to start the financial year with robust growth in revenues, margins, employee and customer additions. We are entering the second quarter with a strong order book and a healthy deal pipeline across key markets and industries."

Tata Elxsi is amongst the world's leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.

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