Tata Elxsi Delivers In FY24 Even As Q4 Profit, Revenue Dips

Growth at Tata Elxsi Ltd. faltered in the fourth quarter of fiscal 2024 and profitability took a hit, but the Tata Group firm managed to hold its own in a slowdown year.

Revenue of the engineering, research and development firm fell 0.91% over the previous three months to Rs 905.94 crore in the quarter ended March 31, 2024, according to an exchange filing on Tuesday. That compares with the Rs 940-crore consensus estimate of analysts tracked by Bloomberg.

Tata Elxsi Q4 FY24 Results: Key Highlights (QoQ)

• Revenue falls 0.91% to Rs 905.94 crore (Estimate: Rs 939.73 crore).

• EBIT down 4.49% at Rs 233.70 crore (Estimate: Rs 252.63 crore).

• EBIT margin declines 96 basis points to 25.79% (Estimate: 26.88%).

• Net profit down 4.6% at Rs 196.9 crore (Estimate: Rs 207.37 crore).

• Dividend of Rs 70 per share declared.

Note: One basis point is one-hundredth of a percentage point.

Tata Elxsi FY24 Results: Key Highlights (YoY)

• Revenue up 12.95% YoY at Rs 3,552.14 crore.

• EBIT up 7.92% YoY at Rs 946.98 crore.

• EBIT margin down 132 bps YoY at 26.65%.

• Net profit up 4.90% YoY at Rs 792.23 crore.

“Fiscal 2024 was a year of consistent operational performance with a revenue growth of 13% despite macroeconomic uncertainties,” Manoj Raghavan, chief executive officer at Tata Elxsi, said in a statement.

“We have done well to maintain industry leading Ebitda margin at 29.5% for the year, even as we continued to expand our talent base with a net addition of 1,535 Elxsians through the year.”

As on March 31, Tata Elxsi had an overall headcount of 13,399 employees, with an attrition rate of 12.4% on a trailing 12-month basis.

Business Performance

For Tata Elxsi, it was the transformation domain that delivered, even as other segments of the business lagged, especially the media and communications vertical. 

The transportation business grew 24.6% year-on-year, and now accounts for 49.9% of overall ‘software and design services' revenue. Original equipment manufacturers constitute more than 56% of the transportation business. “We are now embedded into the SDV (software-defined vehicle) programs of five global OEMs,” Raghavan said.

The healthcare and life sciences business registered a growth of 10.8% year-on-year, with the addition of five marquee customers. The media and communications vertical grew 0.2% year-on-year due to a one-off impact of a deal ramp-down.

The top line was evenly split between America and Europe, which, in a way, protected the firm from macroeconomic headwinds stateside. The top 10 clients continue to bring in more than half of the overall revenue.

On Tuesday, Tata Elxsi shares fell 0.57% to Rs 7,393.85 apiece on the BSE, even as the benchmark Sensex ended the day 0.12% higher at 73,738.45. The quarterly results were declared after market hours.