Publication Name: economictimes.indiatimes.com
Date: October 2018
Tata Elxsi expects revenue to grow 10% quarter-on-quarter starting later this year, propelled by expanding business from customers such as Hyundai Motor, Bharti Airtel and Panasonic, the design and engineering company’s chief executive said. The Tata Group company draws close to a quarter of its revenue by offering services to Jaguar Land Rover, the luxury-car unit of the group. It has a business unit to handle the JLR account and is looking to expand business from clients such as BMW and Daimler as well.
“While we certainly don’t want to miss out on any opportunity from Jaguar Land Rover, we have consciously over the past 3-4 years grown our business outside of JLR in the automotive industry,” Madhukar Dev said, adding: “Today, non-JLR business is more than 2X of the JLR business unit in size and revenue.” Most engineering services companies are growing faster than IT services, although on a smaller base. Tata Elxsi has seen a margin of 24-25% and will continue to maintain the range, Dev said.
Its revenue grew 12% to ₹1,386 crore in fiscal 2018, and Dev forecasts the growth to become quicker now. The double-digit quarter-on-quarter revenue growth will start reflecting in the next few quarters, he said.