Tata Elxsi Q4 results: Profit falls 13% to ₹1.72 bn amid tariff woes

Earlier this week, US President Donald Trump said he was considering a modification to the 25% tariffs on foreign auto and auto parts from Mexico, Canada, and other places

Indian engineering and technology services firm Tata Elxsi reported fourth-quarter profit below estimates on Thursday, as its transportation segment suffered due to trade and geopolitical uncertainties. 

Top customers from the auto industry have paused a number of projects due to tariff issues, CEO Manoj Raghavan said in a post-earnings call, hurting the company that counts Europe and the US as its biggest markets. 

Earlier this week, US President Donald Trump said he was considering a modification to the 25 per cent tariffs on foreign auto and auto parts from Mexico, Canada and other places. The tariffs, announced in March, could raise the costs of a car by thousands of dollars. 

 

But Raghavan also said the company sees visibility of growth in the current quarter from top customers in the segment.

Transportation, Tata Elxsi's biggest segment, provides software and engineering services to auto and auto parts makers, including design of parts and technologies. 

Revenue from the segment dropped marginally from a year ago and nearly 10 per cent sequentially. The division accounts for about 53 per cent of revenue of the company's software development and services unit, which in turn contributes more than 96 per cent of total revenue. 

The company reported a net profit of 1.72 billion rupees (about $20 million) for the quarter ended March 31, a drop of 13 per cent from a year ago, and missed analysts' average expectations of 1.82 billion rupees, according to data compiled by LSEG. 

Revenue from operations rose marginally to 9.08 billion rupees, also falling behind analysts' estimate of 9.24 billion rupees. Peers L&T Technology Services and KPIT Technologies will report results later in the month.