Tata Elxsi reports 58% rise in Q2 net profit
Shares of Tata Elxsi jumped over 5% on Thursday after announcing robust results for the September quarter. The design and technology services provider reported a 58.3% increase in net profit to Rs 78.8 crore in Q2 versus a net profit of Rs 49.8 crore in the year-ago period. Its revenue from operations rose 11.5% to Rs 430.2 crore for the said quarter from Rs 385.8 crore in the corresponding period a year ago. The growth was driven by key businesses.
Embedded Product Design (EPD), it’s largest division — grew by 7.1% quarter-on-quarter and 15.1% year-on-year.
Within EPD, healthcare grew at 14.1% q-o-q, while media and communications grew 6.7% and transportation 5.6% on a sequential basis.
Industrial Design and Visualisation (IDV) also posted growth of 15.1% q-o-q with some key international design project wins.
Tata Elxsi is seeing some recovery in the automotive market. The company has closed some large deals, including a multi-year deal with a European Tier1 supplier for vehicle electronics and software. The company has also added new automotive customers including a new OEM (Original Equipment Manufacturer).
The Tata Group firm is going into the second half of FY21 with a strong deal pipeline across geos and verticals, and a significant number of large deals that it continues to pursue.
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