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Tata Elxsi Q2 PAT rises 59% YoY to Rs 125 cr

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The design and technology services provider reported 58.89% increase in net profit to Rs 125.33 crore on 38.39% rise in net sales to Rs 595.33 crore in Q2 September 2021 over Q2 September 2020.

Tata Elxsi's net profit rose 10.54% and net sales rose 6.63% in Q2 September 2021 over Q1 June 2021. Constant currency revenue was up 7.4% quarter-on-quarter (q-o-q) and 37.2% year-on-year (y-o-y).

EBITDA for the quarter grew 22.4% q-o-q and 55.6% y-o-y to 183.6 crore, while PBT grew 11.1% q-o-q and 55.5% y-o-y to 171 crore. EBITDA margin stood at 30.8% for the quarter.

The company said its growth was powered by Embedded Product Design (EPD), the company's largest division, at 10.6% q-o-q and 34.4% y-o-y in constant currency terms.

Within EPD, the Automotive business posted a smart double-digit q-o-q growth of 12.9% and 29% y-o-y, led by Electric and Autonomous technologies, and a strong deal inflow and pipeline provides confidence for continued growth in the transportation vertical.

Media & Communications delivered another steady quarter with 7.8% q-o-q and 32.9% y-o-y growth respectively, while Healthcare grew 6.6% q-o-q and 72.3% y-o-y.

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 q-o-q decline of 14.2%. On a y-o-y basis, IDV reported a smart growth of 64.5%.

Commenting on the performance, Manoj Raghavan, CEO and managing director, Tata Elxsi said: "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. The overall growth was fueled 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 keyverticals.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 representsalmost 9% of our headcount in the previous quarter. We are entering the third quarter with a strong order book and a healthy deal pipeline across keymarkets 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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, October 23 2021. 11:07 IST