Tata Elxsi reported operating revenue of INR 918.1 crores in Q2, a 2.9% increase in actual currencies (1% in constant currencies). EBITDA stood at INR 193.3 crores with a margin of 21.1%, while PBT was INR 214.7 crores, a margin of 22.2%. The company saw strong growth in key overseas markets, led by the U.S. 7.9% quarter-on-quarter growth and is confident of double-digit growth in the transportation business in the coming year.
Financial Performance
Tata Elxsi announced its financial results for Q2, showcasing steady growth and strategic advancements. Key highlights include:
- Operating Revenue: Recorded at INR 918.1 crores, reflecting a 2.9% growth in actual currencies (1% in constant currencies) quarter-on-quarter.
- EBITDA: Reached INR 193.3 crores, resulting in a margin of 21.1%.
- PBT: Stood at INR 214.7 crores, with a margin of 22.2%.
Segment Performance
Performance across key business segments was varied, reflecting different market dynamics:
- Media & Communication: Reported a strong sequential growth of 6.8%, driven by large deal ramp-ups and new wins. The company’s in-house developed OTT platform, TEPlay, powers MBC Now in Saudi Arabia.
- Transportation: Registered a growth of 0.7%, accounting for over 53% of total revenue. Momentum is driven by global OEM SDV programs. A second engineering center was opened in partnership with Suzuki.
- Healthcare & Life Sciences: Experienced a decline of 2.3% due to the completion of large regulatory programs.
- System Integration: Grew by 20.5%, bolstered by an award from Dell Technologies for Best Infrastructure Solutions Group supplier category.
Strategic Wins and Initiatives
Tata Elxsi highlighted several strategic achievements during the quarter:
- Launch of MBC Now, a Saudi Arabia-based content super aggregator powered by the company’s TEPlay platform.
- Opening of a second engineering center with Suzuki, focusing on cloud hardware and loop simulation to accelerate SDV transition.
- Award of a turnkey airport guidance systems development program from a U.S. headquartered aerospace supplier.
- Launch of a Dedicated Technology Center for Bayer devices and Radiology to co-develop advanced radiology devices.
Outlook and Future Growth
Looking ahead, Tata Elxsi expressed optimism for sustained growth, particularly in the transportation and healthcare sectors. The company expects double-digit growth in the transportation business next year, driven by robust pipeline momentum and strategic partnerships. Continued focus on operational excellence and strategic initiatives positions Tata Elxsi for long-term sustainable growth and expansion into new markets.
Source: BSE