TATA Group is one of India’s largest conglomerates, comprising 30 companies across ten verticals. The group operates in over 100 countries across six continents.
Tata Sons is the principal investment holding company and promoter of Tata companies. The group imprints are found in a wide range of sectors. As of July 31, 2023, there are 29 publicly traded Tata companies with a total market value of $300 billion (INR 24 trillion).
Listed below are the set of factors that differentiate Tata Technologies from Tata Elxsi:
Introduction
Tata Technologies, a subsidiary of Tata Motors, has been a pioneer in the Automotive and Aerospace segments, providing industry-leading Engineering Research and design services (ER&D) that offer end-to-end solutions across the value chain with a focus on manufacturing-led verticals.
Tata Elxsi is a design specialist focused on software and digital engineering services. The company caters to the transport and automotive sectors. But it has a more diversified focus. It serves a variety of industries including automotive, broadcast and communications, consumer electronics, healthcare, and transportation.
Revenue mix
Tata Technologies obtained a substantial percentage of its revenue from India in 2023, accounting for 29.76% of total sales. Europe accounted for 22.83%, North America accounted for 21.44%, and the rest of the world accounted for 25.97%.
The United States accounts for 42% of Tata Elxsi’s sales, followed by 34% from Europe, 17% from India, and the rest from other regions of the world.
Top Clients
Tata Technologies, the top five clients, contributes 60.49% of overall revenue which includes Jaguar Land Rover, Tata Motors and VinFast. Tata Technologies generated about 88 percent of its revenues from the auto vertical in the first half of the ongoing financial year.
While Tata Elxsi generated 46 percent of its revenue from Healthcare & Life Sciences and Media & Communication verticals during the same period,and the company’s top clients include Nissan, Mahindra, Motorola, Comcast, Echostar, Panasonic and Ford.
Financials
Tata Technology’s revenue in FY23 amounted to Rs. 4,502 crore, a 25.81% growth from Rs. 3,578 crore in FY22. In the last three years, the company’s revenue has grown at a 36.23% CAGR.
The company’s net profits climbed by 42.8%, rising from Rs. 437 crore in FY22 to Rs. 624 crore in FY23. In the last three years, the company’s net profits have climbed at a CAGR of 61.53%.
Tata Elxsi’s revenue has increased by 27.3 percent from Rs 2,471 crore in FY22 to Rs 3,145 crore in FY23. Further, Net profit has increased by 37 percent from Rs 550 to Rs 755 crore.
Business Activities
Based on the Tata Technology deep domain knowledge, technological and process knowledge and capabilities, scale capacity, ability to undertake turnkey projects, and long-standing client relationships, So the company has a global footprint with a balanced talent presence across an offshore revenue mix of 51% and an onshore revenue mix of 49%.
Tata Elxsi, on the other hand, has a 26% onshore revenue mix and a 74% offshore revenue mix.
Employee Attrition rate
Both companies have an employee strength of close to 10,000. However, Tata Technologies has a higher attrition rate of 25% (in 2022), compared to Tata Elxsi’s 20% (in 2022) and 17.3% (in 2023).
Key Competitors
Tata Technology key competitors in the ER&D service market include L&T Technology Services, KPIT Technologies, and Tata Elxsi, IT service providers such as Tata Consulting Services (“TCS”), Wipro, and Tech Mahindra, global R&D service providers.
Tata Elxsi Ltd competitors include Coforge Ltd,Cyient Ltd,Happiest Minds Technologies Ltd,Intellect Design Arena Ltd,KPIT Technologies Ltd,L&T Technology Services Ltd.
Written by Omkar Chitnis
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