June 21st 2002 - TATA Elxsi Ltd, the technical computing arm of the Tata group, expects its net profit for the 2002-03 fiscal to grow at a faster pace than a year ago. Last year, the companys net profit grew by about 21 per cent to Rs 16.75 crore. Mr Madhukar Dev, CEO, Tata Elxsi, said the higher growth in its net profit would be backed by increased focus on software services.
The company expects revenues from software operations to contribute about 60 per cent of its overall revenues in the current fiscal as against 51 per cent last year.
The company mainly operates in two segments, namely systems integration and support, and software development and services.
A bulk of the companys profits came from software business, estimated around 80 per cent and the rest from the domestic systems integration business. Tata Elxsi is consciously reducing its dependence on domestic business, considered to be a low margin, even while sharpening its focus on software services.
It is also planning to tap the overseas market for offering systems integration services. "We are planning to tie up with overseas companies in this regard, Mr Dev told Business Line. "There has been lot more activity in the last two months than in the previous 15 months," he said.
The company had added about six clients so far in the first quarter as against two in the last quarter last fiscal, Mr Dev said, and added that the company expected to grow above the industry average during the current year.
"Tata Elxsi has not experienced any pricing pressure, "Mr Dev said, adding that the "sales cycles have improved since December 2001 and the situation is comparable to that of 1999.
As part of its capital expenditure, the company was planning a major investment of $1 million in EDA (electronic design automation) tools and workstations, Mr Dev said. The company expects to add about 100-150 workers in the current year depending on need.
In the first quarter, the company added about 20 people so far, he said.
Shareholders okay Rs 3.50 final dividend
SHAREHOLDERS of Tata Elxsi Ltd have approved a final dividend of Rs 3.50 per share at the companys 13th annual general meeting. The total outgo towards dividend is about Rs 10.90 crore.
Replying to a shareholders query on the rumoured merger with TCS, Mr Shyamal Gupta, Chairman, Tata Elxsi, said: "There is nothing to answer because it is not within the purview of the company." |
