Tata Elxsi Q2 Results FY2023, Revenue at Rs. 763.2 crores

On 14th October 2022, Tata Elxsi, amongst the world’s leading providers of design-led technology services, announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- The company’s revenues from operations stood at Rs. 763.2 Cr, with growth at 5.1% QoQ, and 28.2% YoY 
- The Industry-leading EBITDA Margin was reported at 29.7%  
- The company reported its Profit after tax at Rs. 174.3 Cr, with a growth of 39.1.% YoY 
- EPS grows 39.0% YoY to Rs. 27.98  
- Tata Elxsi crossed the 11,000-employee mark with 1,532 net additions in the quarter 
- The company’s growth was primarily volume-led, with all three segments of EPD, IDV, and SIS showing robust growth of 3.8%, 13.5%, and 26.2% QoQ respectively.  

Business Highlights:

- The Transportation segment reported a growth of 3.8% QoQ and 30.4% YoY, aided by large deals in EV, ADAS, and adjacencies in rail and offroad vehicles. 
- The Healthcare segment continued to witness strong growth of 8.2% QoQ and 55.9% YoY, driven by new product engineering and regulatory services. 
- The Media and Communications segment reported growth at 2.1% QoQ and 22.2% YoY, aided by platform-led deals and entry into new operator accounts.  

Commenting on the results, Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi said: “We have delivered a quarter of steady growth amidst macro-economic uncertainty and currency headwinds in our key markets. We are seeing strong and sustained growth in the automotive and adjacent segments, led by our EV and digital capabilities. We are gaining market share in both Automotive and Media & Communications, especially in Europe. The numbers are muted in the region due to unfavorable currency movement. We won multi-year deals in EV and autonomous driving systems in the automotive space, and a next-gen platform for connectivity and infotainment with a leading offroad equipment maker. We have won strategic platform-led deals in media and communications, with new SaaS and managed services models. 
For us, this has been a quarter of investing strongly in growth for the future. With a net add of 1532, we have added the highest number of Elxsians in our history in a single quarter, while the attrition rate declined for the second consecutive quarter. We have also invested in expanding our facilities in existing locations of Bengaluru, Chennai and Pune, and new talent bases in Kozhikode and Hyderabad. We are also making significant investments in growing our leadership pipeline for delivery, technology and sales. This is essential for us to establish the next base of talent to win, manage and grow the increasing number of strategic accounts and new offerings we are bringing to market. We are entering the second half of the financial year with a strong order book and a healthy deal pipeline across key markets and industries, and the confidence of customers in our technology capabilities and differentiated delivery models. Importantly, we have invested in capacity and capability building for engineering talent, leadership and technology that will drive our next phase of growth.”

The Tata Elxsi share price dropped by 8%.