Tata Elxsi rallies 13% to hit new high on strong Q3 results

Shares of Tata Elxsi hit a new high of Rs 7,171 on rallying 13 per cent on the BSE in Wednesday’s intra-day trade after the company delivered another quarter of strong and consistent growth, with 33.2 per cent year-on-year revenue growth and profit after tax (PAT) growth of 43.5 per cent in the December quarter. 

The stock surpassed its previous high of Rs 6,780 touched on November 15, 2021. At 11:47 pm, it was up 12 per cent at Rs 7,152, as compared to 0.77 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped nearly four-fold with a combined 1.5 million equity shares having changed hands on the NSE and BSE.

Tata Elxsi, a Tata Group company, is amongst the world’s leading providers of design and technology services across industries including transportation, media, communications and healthcare & medical devices.

The company reported ₨ 635.4 crores of revenue from operations for Q3FY22,  a growth of 6.7 per cent from the previous quarter, which was powered by Embedded Product Design (EPD), the company’s largest division that grew at 9.9 per cent sequentially and 36 per cent on a yearly basis.

The company’s net profit for the quarter stood at Rs 151 crore, a QoQ growth of 20.4 per cent and 43.5 per cent on-year. The company delivered industry-leading bottom-line performance and crossed the Rs 200 crore profits before tax (PBT) and Rs 150 crore PAT milestones for the first time in its history.

Its management said the company is seeing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers across electric, autonomous, connected and digital, underscoring company’s technology and engineering leadership.

The company has won strategic multi-year large deals this quarter against the best global competitors in all three industries. “We are entering the fourth quarter with the confidence of a strong order book and a healthy deal pipeline across key markets and industries,” it said.