Tata Elxsi delivers steady growth in Q3FY23 with 7.2% QoQ growth in revenues and PAT growth of 11.7% QoQ
Crosses the 100M US$ run rate in a quarter for the first time, powered by Automotive and Design Digital
Bangalore, January 25, 2023: Tata Elxsi (BSE: 500408 | NSE: TATAELXSI), amongst the world’s leading providers of design led technology services, announced its third quarter results for the period ending 31st December 2022
Highlights of the Quarter Ended 31st December 2022
- Revenues from operations at Rs. 817.7 Cr, + 7.2% QoQ, + 28.7% YoY
- Overall quarterly revenue crosses US$ 100 million for the first time
- EBITDA Margin expands to 30.2%, + 9.0% QoQ growth
- Profit after tax at Rs. 194.7 Cr, + 11.7% QoQ
- EPS grows 11.7% QoQ and 29.0% YoY to Rs. 31.26
For the quarter ending December 31st, 2022, the company reported Rs. 817.7 Cr of revenues from operations, a steady growth of 7.2% QoQ and 28.7% YoY while Profits after tax grew 11.7% QoQ and 29.0% YoY.
All three segments of EPD, IDV and SIS delivered robust growth of 5.1%, 25.5% and 9.3% QoQ respectively.
Q3 Business Highlights:
- Transportation witnessed stellar growth of 12% QoQ and 33.2% YoY, aided by large deals and market share gains in EV, Software Defined Vehicles and adjacencies.
- Healthcare grew at 28.4% YoY, driven by new product engineering, digital health and regulatory services.
- Media and Communications grew 14.7% YoY in a challenging quarter for the industry, aided by new wins in Android TV and AdTech, and platform-led deals with operators.
- Among regions, Europe delivered strong growth of 8.9% QoQ, followed with US at 6.3% QoQ.
Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance, said
“We have delivered a quarter of steady growth in a seasonally weak and challenging quarter for the technology industry and macro-economic uncertainty in our key markets. We are seeing strong and sustained growth in the Automotive and adjacent segments in Transportation, led by our differentiated EV and digital capabilities.
We won multi-year deals in EV and Software Defined Vehicle architectures in the automotive space, and a strategic entry into a global OEM software organization.
Both our Healthcare and Media & telecom business saw some impact of delayed decision-making, furloughs and a short quarter. We have done well to protect our business and position ourselves strongly for upcoming strategic deals.
In the Media and Telecom vertical, we have won strategic platform-led deals with operators in media and communications, and new wins especially in the AdTech space.
The Healthcare & Lifesciences vertical saw new product development deals including a Renal Home care platform for a leading US medical device company.
Our Design business continues to win Design Digital deals for the company across our key verticals. It is seeding opportunities for larger development projects and next-generation digital applications, including AR/VR and AI enabled entertainment experiences.
For us, this has been a quarter of focusing on positioning ourselves strongly for the future with our unique design-led capabilities, scaling across our customer base, and harnessing the exceptional investments in employee additions we have made in the last quarter and before.
The attrition rate declined for the third consecutive quarter, even as we continue to invest in bringing in the right expertise to deliver exceptional outcomes for our customers. This is helping us accelerate growth in the increasing number of strategic accounts and new offerings we are bringing to market. We have also invested in establishing a digital engineering center in Frankfurt, to support our growth in Germany and Europe.
We are entering the last quarter of the financial year with a strong order book and a healthy deal pipeline across key markets and industries, and a differentiated Design Digital positioning.”
About Tata Elxsi
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. For more information, please visit www.tataelxsi.com
Telephone: +91 80 2297 9123