Tata Elxsi gains after Q2 PAT rises 58% YoY

Tata Elxsi rose 2.04% to Rs 1486.60 after the company's consolidated net profit jumped 58.4% to Rs 78.88 crore on 11.5% rise in net sales to Rs 430.18 crore in Q2 September 2020 over Q2 September 2019.

The company's revenue from the software development & services business segment stood at Rs 420.53 crore (up 12.7% YoY). The revenue from the system integration & support services segment was at Rs 9.65 crore (down 23.3% YoY) in the second quarter.

Profit before tax in Q2 September 2020 stood at Rs 109.95 crore, up by 56.1% from Rs 70.44 crore in Q2 September 2019. Current tax expense increased by 52.8% year-on-year (YoY) to Rs 31.33 crore during the quarter.

Manoj Raghavan, CEO and managing director, said: "It was a pretty satisfying quarter with all-round growth across key verticals and geographies. We are seeing some recovery in the automotive market. We have closed some large deals including a multi-year deal with a European Tier1 supplier for vehicle electronics and software. We have also added new automotive customers including a new OEM."

"We are going into the second half of FY21 with a strong deal pipeline across geos and verticals, and a significant number of large deals that we are pursuing. We are back to our pre-COVID momentum and expect this momentum to continue into H2 FY21," he added.

Tata Elxsi is a provider of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.

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