On year on year basis, the company’s net profit declined 2.53% from Rs 188.85 crore while revenue from operations increased 8.96% from Rs 850.27 crore in Q1 FY24.

Profit before tax (PBT) stood at Rs 252.39 crore in Q1 FY25 (up 1.63% YoY and down 3.81% QoQ).

EBITDA stood at Rs 252.3 crore in the quarter ended 30 June 2024 (up 0.3% YoY and down 3.4%). EBITDA margin contracted to 27.2% in Q1 FY25 from 28.8% in Q4 FY24 and 29.6% in Q1 FY24.

Transportation grew strongly at 5.3% QoQ CC (constant currency), aided by deal wins and ramp-up of Software Defined Vehicle (SDV) engagements.

Media and Communications rose 0.5% QoQ CC, performing creditably in a difficult environment for the media and telecom industry.

System Integration services grew strongly at 8.7% QoQ CC.

Manoj Raghavan, CEO and managing director, Tata Elxsi, said, “We executed very well on operational excellence and fiscal discipline in this quarter towards bottom-line performance, despite the impact of an exceptional one-off expense in the quarter and an increase in the effective tax rate with the change in SEZ benefits for one of our facilities.

Our Transportation business reported a strong growth of 5.3% QoQ and 20.3% YoY in constant currency, and now accounts for more than 50% of our Software Development & Services business. We believe we are well positioned to capture growth opportunities in the coming quarters as we continue to enable the continued transformation of the automotive industry and Software Defined Vehicles

Our Media & Communication business has done well in a difficult business environment for this industry, growing 0.9% QoQ in actual currency and 0.5% QoQ in constant currency. We are building on our strong customer relationships, even as we roll out innovative growth and efficiency offerings for this industry. I am especially delighted with the NEURON platform-led deal from a leading North American telecom operator for their network transformation.

Our Healthcare & Lifesciences business reported a decline in topline by 4.3% QoQ in constant currency. This is largely due to delay in renewals of some projects at one of our large customers. We continue to add marquee logos and some exciting start-ups to our customer base, laying the foundation for sustained long-term growth along with next-gen service offerings.

We are investing strongly in digital, AI and Gen AI technologies across our verticals, targeting efficiency and quality in product engineering, as well as novel applications of Gen AI combined with domain and design expertise to solve complex business, product and engineering problems. A great example is from our healthcare business where we have combined our depth of domain and product knowledge with Gen AI, to pioneer an innovative approach to sustainability and material replacement in medical devices and win a strategic deal with a leading manufacturer.”

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.