Tata Elxsi Q3 Results: Profit Falls 13%, Misses Estimates

Tata Elxsi Ltd.'s consolidated net profit fell 13% sequentially in the third quarter of the current financial year, missing analysts' estimates.

The design and technology provider posted a profit of Rs 199 crore in the quarter ended December, according to an exchange filing. Analysts tracked by Bloomberg had a consensus estimate of Rs 216 crore.

Tata Elxsi Q3 FY25 Highlights (Consolidated, QoQ)

• Revenue down 1.7% to Rs 939.2 crore versus Rs 955.1 crore (Bloomberg estimate: Rs 987 crore).

• EBIT down 8% to Rs 220.6 crore versus Rs 239.3 crore (Estimate: Rs 259 crore).

• Margin narrows to 23.5% versus 25.1% (Estimate: 26.3%).

• Net profit down 13% to Rs 199 crore versus Rs 229.4 crore (Estimate: 216 crore).

The automotive industry has seen significant business challenges in the past few months, with the original equipment manufacturers, especially in the US and Europe, reporting sales and growth challenges. This has impacted new deal closures and Tier 1 supplier spend, according to Chief Executive Officer Manoj Raghavan.

"Amid this business environment, Tata Elxsi continues to do well to win and execute on the large deals won over this year and demonstrate differentiated value to customers, to protect and grow revenues in a difficult quarter for the entire automotive industry," Raghavan added.

Shares of Tata Elxsi closed 0.52% lower at Rs 6,439.95 apiece on the National Stock Exchange, compared to a 0.69% fall in the benchmark Nifty. The share price has fallen 25.49% in the last 12 months.

Out of 14 analysts tracking the company, three maintain a 'buy' rating on the stock and 11 recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 3.2%.