Results     11-Oct-24
Analysis
Tata Elxsi
Revenue up 8.3% YoY to Rs 955.09 crore in Q2FY2025
On standalone basis

Quarter ended September 2024 compared with Quarter ended June 2024.

Net sales (including other operating income) of Tata Elxsi has increased 3.09% to Rs 955.09 crore.  

Operating profit margin has jumped from 27.23% to 27.89%, leading to 5.61% rise in operating profit to Rs 266.41 crore.  Purchase of finished goods cost rose from 5.33% to 6.20%.   Employee cost increased from 53.87% to 53.93%.   Other expenses fell from 13.54% to 11.98%.   

Other income up 100.44% to Rs 64.3 crore.  PBIDT rose 16.30% to Rs 330.71 crore.  Provision for interest fell 0.82% to Rs 4.85 crore.  Loan funds remained nil.  

PBIDT rose 16.30% to Rs 330.71 crore.  Provision for depreciation rose 0.33% to Rs 27.15 crore.  

Profit before tax grew 18.35% to Rs 298.71 crore.  Provision for tax was expense of Rs 69.28 crore, compared to Rs 68.32 crore.  Effective tax rate was 23.19% compared to 27.07%.

Profit after tax rose 24.64% to Rs 229.43 crore.  

Promoters’ stake was 43.92% as of 30 September 2024 ,compared to 43.92% as of 30 June 2024 .  

Quarter ended September 2024 compared with Quarter ended September 2023.

Net sales (including other operating income) of Tata Elxsi has increased 8.32% to Rs 955.09 crore.  Sales of System Integration & Support Serv segment has gone up 26.31% to Rs 27.91 crore (accounting for 2.92% of total sales).  Sales of Software Development & Services segment has gone up 7.86% to Rs 927.17 crore (accounting for 97.08% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 5.97% to Rs 355.23 crore.  PBIT of System Integration & Support Serv segment fell 14.82% to Rs 5.07 crore (accounting for 1.43% of total PBIT).  PBIT of Software Development & Services segment rose 6.35% to Rs 350.16 crore (accounting for 98.57% of total PBIT).  

PBIT margin of System Integration & Support Serv segment fell from 26.94% to 18.17%.  PBIT margin of Software Development & Services segment fell from 38.30% to 37.77%.  Overall PBIT margin fell from 38.02% to 37.19%.  

Operating profit margin has declined from 29.89% to 27.89%, leading to 1.09% rise in operating profit to Rs 266.41 crore.  Purchase of finished goods cost rose from 5.65% to 6.20%.   Employee cost decreased from 54.14% to 53.93%.   Other expenses rose from 10.32% to 11.98%.   

Other income up 106.55% to Rs 64.3 crore.  PBIDT rose 12.23% to Rs 330.71 crore.  Provision for interest fell 16.52% to Rs 4.85 crore.  Loan funds declined from Rs 237.31 crore as of 30 September 2023 to Rs 205.78 crore as of 30 September 2024.  Sundry debtors were higher at Rs 984.81 crore as of 30 September 2024 compared to Rs 882.88 crore as of 30 September 2023.  Cash and bank balance rose to Rs 1,316.62 crore as of 30 September 2024 from Rs 1,178.55 crore as of 30 September 2023.  

PBDT rose 12.81% to Rs 325.86 crore.  Provision for depreciation rose 8.56% to Rs 27.15 crore.  Fixed assets declined from Rs 379.65 crore as of 30 September 2023 to Rs 344.88 crore as of 30 September 2024.  Intangible assets declined from Rs 14.25 crore to Rs 11.03 crore.  

Profit before tax grew 13.21% to Rs 298.71 crore.  Provision for tax was expense of Rs 69.28 crore, compared to Rs 63.84 crore.  Effective tax rate was 23.19% compared to 24.19%.

Profit after tax rose 14.70% to Rs 229.43 crore.  

Equity capital stood at Rs 62.28 crore as of 30 September 2024 to Rs 62.28 crore as of 30 September 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 43.92% as of 30 September 2024 ,compared to 43.92% as of 30 September 2023 .  

Year-to-date (YTD) results analysis

Net sales (including other operating income) of Tata Elxsi has increased 8.64% to Rs 1,881.54 crore.  Sales of System Integration & Support Serv segment has gone up 21.08% to Rs 54.38 crore (accounting for 2.89% of total sales).  Sales of Software Development & Services segment has gone up 8.30% to Rs 1,827.17 crore (accounting for 97.11% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.03% to Rs 687.52 crore.  PBIT of System Integration & Support Serv segment rose 27.48% to Rs 10.27 crore (accounting for 1.49% of total PBIT).  PBIT of Software Development & Services segment rose 7.78% to Rs 677.25 crore (accounting for 98.51% of total PBIT).  

PBIT margin of System Integration & Support Serv segment rose from 17.94% to 18.89%.  PBIT margin of Software Development & Services segment fell from 37.25% to 37.07%.  Overall PBIT margin fell from 36.75% to 36.54%.  

Operating profit margin has declined from 29.74% to 27.57%, leading to 0.71% rise in operating profit to Rs 518.67 crore.  Purchase of finished goods cost fell from 6.23% to 5.77%.   Employee cost increased from 53.11% to 53.90%.   Other expenses rose from 10.92% to 12.74%.   

Other income up 80.71% to Rs 96.39 crore.  PBIDT rose 8.22% to Rs 615.06 crore.  Provision for interest remained nil.  Loan funds declined from Rs 237.31 crore as of 30 September 2023 to Rs 205.78 crore as of 30 September 2024.  Sundry debtors were higher at Rs 984.81 crore as of 30 September 2024 compared to Rs 882.88 crore as of 30 September 2023.  Cash and bank balance rose to Rs 1,316.62 crore as of 30 September 2024 from Rs 1,178.55 crore as of 30 September 2023.  

PBDT rose 8.36% to Rs 605.32 crore.  Provision for depreciation rose 16.80% to Rs 54.22 crore.  Fixed assets declined from Rs 379.65 crore as of 30 September 2023 to Rs 344.88 crore as of 30 September 2024.  Intangible assets declined from Rs 14.25 crore to Rs 11.03 crore.  

Profit before tax grew 7.60% to Rs 551.10 crore.  Provision for tax was expense of Rs 137.59 crore, compared to Rs 123.32 crore.  Effective tax rate was 24.97% compared to 24.08%.

Profit after tax rose 6.34% to Rs 413.51 crore.  

Equity capital stood at Rs 62.28 crore as of 30 September 2024 to Rs 62.28 crore as of 30 September 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 43.92% as of 30 September 2024 ,compared to 43.92% as of 30 September 2023 .  

Cash flow from operating activities decreased to Rs 375.42 crore for YTD ended September 2024 from Rs 407.56 crore for YTD ended September 2023.  Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 11.58 crore, compared to Rs 31.88 crore during the YTD ended September 2023.  


Full year results analysis

Net sales (including other operating income) of Tata Elxsi has increased 12.96% to Rs 3,552.15 crore.  Sales of System Integration & Support Serv segment has gone up 4,287.51% to Rs 3,456.26 crore (accounting for 97.30% of total sales).  Sales of Software Development & Services segment has gone down 96.87% to Rs 95.89 crore (accounting for 2.70% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 21.61% to Rs 1,301.86 crore.  PBIT of System Integration & Support Serv segment rose 33,418.80% to Rs 1,277.34 crore (accounting for 98.12% of total PBIT).  PBIT of Software Development & Services segment fell 97.70% to Rs 24.52 crore (accounting for 1.88% of total PBIT).  

PBIT margin of System Integration & Support Serv segment rose from 4.84% to 36.96%.  PBIT margin of Software Development & Services segment fell from 34.79% to 25.57%.  Overall PBIT margin rose from 34.04% to 36.65%.  

Operating profit margin has declined from 30.57% to 29.46%, leading to 8.86% rise in operating profit to Rs 1,046.44 crore.  Purchase of finished goods cost fell from 5.92% to 5.46%.   Employee cost increased from 50.81% to 53.75%.   Other expenses fell from 12.70% to 11.34%.   

Other income up 65.22% to Rs 121.95 crore.  PBIDT rose 12.88% to Rs 1168.39 crore.  Provision for interest up 25.06% to Rs 20.26 crore.  Loan funds rose to Rs 223.98 crore as of 31 March 2024 from Rs 182.26 crore as of 31 March 2023.  Inventories rose to Rs 1.11 crore as of 31 March 2024 from Rs 0.39 crore as of 31 March 2023.  Sundry debtors were lower at Rs 971.59 crore as of 31 March 2024 compared to Rs 976.38 crore as of 31 March 2023.  Cash and bank balance rose to Rs 1,357.10 crore as of 31 March 2024 from Rs 1,191.55 crore as of 31 March 2023.  

PBDT rose 12.68% to Rs 1148.13 crore.  Provision for depreciation rose 22.19% to Rs 99.45 crore.  Fixed assets increased to Rs 384.69 crore as of 31 March 2024 from Rs 324.37 crore as of 31 March 2023.  Intangible assets declined from Rs 16.20 crore to Rs 13.44 crore.  

Profit before tax grew 11.86% to Rs 1,048.68 crore.  Provision for tax was expense of Rs 256.44 crore, compared to Rs 182.31 crore.  Effective tax rate was 24.45% compared to 19.45%.

Profit after tax rose 4.91% to Rs 792.24 crore.  

Equity capital stood at Rs 62.28 crore as of 30 September 2024 to Rs 62.28 crore as of 30 September 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 43.92% as of 31 March 2024 ,compared to 43.92% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 701.23 crore for year ended March 2024 from Rs 486.86 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 83.11 crore, compared to Rs 64.10 crore during the year ended March 2023.  

 

Management commentary:

Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance said “I am happy to report a steady second quarter with revenue from operations growing to Rs. 955.1 crores, registering a QoQ growth of 3.1%. Our operational and offshore delivery excellence, fiscal discipline, and differentiated offerings have contributed to our EBITDA margins expanding by 70 basis points to 27.9% for the quarter. Our PAT grew by 24.6% QoQ to 229.4 Cr, with superior bottom-line performance further aided by R&D incentives and tax credits from previous years.

Our transportation business continues to power growth for the company, registering a strong revenue growth of 8.8% QoQ. We won a landmark US$ 50 million multi-year deal from a global OEM headquartered in Europe, which encompasses SDV and multiple domains of automotive engineering.

In our Media & Communication business, I am especially delighted with our world’s first RDK Broadband implementation for Qualcomm, which allows global telecom operators to adopt this first-of-its kind solution to deliver high-speed home and enterprise broadband services through their 5G networks.

Our Healthcare & Lifesciences business added some new marquee customers, including a strategic deal for advanced surgical imaging and AI + cloud powered software platform development.

Our strategic focus on expanding our business in Japan, emerging markets and capitalizing on the India opportunity, is now starting to significantly contribute to our growth. During the quarter, our revenue from India has grown by 31.2% YoY, while Japan and emerging markets grew smartly at 81.9% YoY.

We step into the third quarter of this financial year with the confidence of our design-digital proposition, a healthy deal pipeline, continued growth in our transportation business, large deal wins and recovery in our other key verticals”

We continue to invest 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.

We step into the second quarter of this financial year with the confidence of a strong deal pipeline, continued growth in our transportation business and expansion of business with strategic customers across verticals.”

We look forward to leveraging the rich experience and network, industry knowledge and strategic inputs from our new directors.

I am pleased with our overall performance and resilience in revenues, margins, and customer additions through the year, in a volatile macroeconomic environment.

We are entering the new financial year with a commitment for growth, and the continued confidence in our differentiated design-led engineering capabilities. This is backed by strategic relationships we have built over years with key customers, the qualitative change in revenues towards OEMs and SDV programs, entries into new operators and marquee healthcare logos, investments in strategic technology areas and AI, and the strong deal pipeline we carry into the new financial year.”



Tata Elxsi : Standalone Results
Quarter endedYear to DateYear ended
Particulars202409202309Var.(%)202409202309Var.(%)202403202303Var.(%)
Net Sales (including other operating income)955.09881.708.321,881.541,731.978.643,552.153,144.7212.96
OPM (%)27.8929.89-200 bps27.5729.74-217 bps29.4630.57-111 bps
OP266.41263.551.09518.67515.010.711,046.44961.288.86
Other Inc.64.3031.13106.5596.3953.3480.71121.9573.8165.22
PBIDT330.71294.6812.23615.06568.358.221,168.391,035.0912.88
Interest4.855.81-16.529.749.740.0020.2616.225.06
PBDT325.86288.8712.81605.32558.618.361,148.131,018.8912.68
Depreciation27.1525.018.5654.2246.4216.8099.4581.3922.19
PBT298.71263.8613.21551.1512.197.601048.68937.511.86
PBT before EO298.71263.8613.21551.1512.197.601048.68937.511.86
EO Income00-00-00-
PBT after EO298.71263.8613.21551.1512.197.601048.68937.511.86
Taxation69.2863.848.52137.59123.3211.57256.44182.3140.66
PAT229.43200.0214.70413.51388.876.34792.24755.194.91
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations229.43200.0214.70413.51388.876.34792.24755.194.91
EPS (Rs)*36.8432.1214.7066.4062.446.34127.21121.264.91
* EPS is on current equity of Rs 62.28 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Tata Elxsi : Standalone Segment Results
td>-
 Quarter endedYear to DateYear ended
% of (Total)202409202309Var.(%)% of (Total)202409202309Var.(%)% of (Total)202403202303Var.(%)
Sales
System Integration & Support Serv2.9227.9122.1026.312.8954.3844.9121.0897.303,456.2678.784,287.51
Software Development & Services97.08927.17859.607.8697.111,827.171,687.068.302.7095.893,065.95-96.87
Total Reported Sales100.00955.09881.708.32100.001,881.541,731.978.64100.003,552.153,144.7212.96
Less: Inter segment revenues 0.000.00- 0.000.00 0.000.00-
Net Sales100.00955.09881.708.32100.001,881.541,731.978.64100.003,552.153,144.7212.96
PBIT
System Integration & Support Serv1.435.075.95-14.821.4910.278.0627.4898.121,277.343.8133,418.80
Software Development & Services98.57350.16329.256.3598.51677.25628.367.781.8824.521,066.70-97.70
Total PBIT100.00355.23335.205.97100.00687.52636.428.03100.001,301.861,070.5121.61
Less : Interest4.855.81-16.619.749.740.0520.2616.2025.08
Add: Other un-allcoable-51.67-65.3220.90-126.67-114.49-10.64-232.92-116.81-99.40
PBIT Margin(%)
System Integration & Support Serv 18.1726.94-877.41 18.8917.9494.79 36.964.843,211.96
Software Development & Services 37.7738.30-53.67 37.0737.25-18.05 25.5734.79-921.87
PBT100.00298.71264.0713.12100.00551.11512.197.60100.001,048.68937.5011.86


Peer Comparision (Standalone) Q-202409
Sales
(Rs. Crs)
var.(%) OP
(Rs. Crs)
var.(%) Net Profit
(Rs. Crs)
var.(%) Share Price(Rs)
10-Oct-2024
var.(%)
over
One year
TTM EPS TTM PE
Tata Elxsi Ltd 955.09 8.32 266.41 1.09 229.43 14.7 7,762.35 5.54 131.16 59.18
VL E-Governance & IT Solutions Ltd 7.99 -63.7 0.69 LP 0.81 LP 164.95 403.51 -0.07 -
Industry 963.08 6.57 267.10 1.86 230.24 15.69 49,802.10 9.88 74.05
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