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Tata Elxsi, a providers of design-led technology services, announced its results for the second quarter of FY 2021-22 ended September 30, 2021.
The company reported ₨ 595.3 Cr of revenue from operations for Q2 FY22, registering a growth of 38.4% y-o-y. EBITDA for the quarter grew 22.4% q-o-q and 55.6% y-o-y to 183.6 Cr, while PBT grew 11.1% q-o-q and 55.5% y-o-y to 171 Cr. Company’s net profit for the quarter stood at Rs 125.3 Cr, reporting a growth of 10.5% q-o-q and 58.9% y-o-y.
Highlights of the Quarter Ended September 30, 2021
- Revenues from operations at Rs. 595.3 Cr, +6.6% q-o-q, +38.4% y-o-y
- Constant currency revenue up 7.4% q-o-q, 37.2% y-o-y
- EBITDA Margin at 30.8%; Net Margin at 21.0%
- Profit Before Tax (PBT) at Rs. 171.0 Cr, +55.5% y-o-y
- Profit After Tax (PAT) at Rs. 125.3 Cr, +58.9% y-o-y
The growth of Tata Elxsi was powered by Embedded Product Design (EPD), the company’s largest division, at 10.6% q-o-q and 34.4% y-o-y in constant currency terms.
Within EPD, the Automotive business posted a smart double-digit q-o-q growth of 12.9% and 29% y-o-y, led by Electric and Autonomous technologies, and a strong deal inflow and pipeline provides confidence for continued growth in the transportation vertical.
Media & Communications delivered another steady quarter with 7.8% q-o-q and 32.9% y-o-y growth respectively, while Healthcare grew 6.6% q-o-q and 72.3% y-o-y.
The Design business (IDV) continues to win new customers and fuel strategic deal wins in design-led digital projects for the company. This quarter saw an impact due to a shift in program timelines for a large ongoing design-led innovation project, with a q-o-q decline of 14.2%. On a y-o-y basis, IDV reported a smart growth of 64.5%.
Commenting on the performance, Manoj Raghavan, CEO and Managing Director, Tata Elxsi said, “We are pleased to report another quarter of steady growth across industry verticals and continue to execute strongly on both top line and bottom line.
"We are seeing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers in EV and autonomous technologies, underscoring our technology and engineering leadership.
"The overall growth was fueled by digital and platform-led deals and demonstrate the differentiation and relevance of our design-led approach and technology capabilities to the product and technology transformation agendas of customers in our key verticals.
"The superior topline and bottom-line performance was supported by industry-leading operational excellence and talent retention. We also added over 700 new Elxsians this quarter, which represents almost 9% of our headcount in the previous quarter. We are entering the third quarter with a strong order book and a healthy deal pipeline across key markets and industries.”