With a market cap of Rs. 48,498 crore, this company is amongst the world’s leading providers of design-led technology services and announced its financial results for Q3 FY23-24, that is, for the quarter ended December 2023.
Shares of Tata Elxsi Ltd opened at Rs. 8,000 on January 24 from its previous close of Rs. 8,195.7. The company has delivered nearly 7.69 percent returns in the last six months, whereas it has given around 18 percent in the last one year.
As per the recent filings in the stock exchanges, Tata Elxsi has reported healthy revenue growth of 12% YoY, in Q3 FY23-24 to Rs. 914.23 crore from Rs. 817.74 crore in Q3 FY22-23.
The company’s revenue from operations increased by 3.7 percent to Rs. 914.23 crore in the December 2023 quarter from Rs. 881.7 crore in the September 2023 quarter.
While the company registered an increase in net profit by 3.2 percent from Rs. 200.22 crore in the September 2023 quarter to Rs. 206.43 crore in the December 2023 quarter, the net profit grew by 6 percent on a YoY basis from Rs. 194.67 crore in Q3 FY22-23 to Rs. 206.4 crore in Q3 FY23-34.
The before-tax profit reported an increase of 14.2 percent on a year-on-year basis to Rs. 274.07 crore in Q3 FY23-24 from Rs. 240.09 crore in Q3 FY22-23.
Despite the strong net profit, the company margins have marginally fallen to 29.5 percent in Q3 FY23-24 from 29.9 percent in Q2 FY23-24.
As mentioned in the segment highlights of the filings, the system integration services grew 14.7 percent QoQ, media and communication increased at 4.6 percent QoQ and 13 percent YoY, healthcare grew at 4.6 percent QoQ and 13 percent YoY, transportation rose up to 2.7 percent QoQ and 15.6 percent YoY, and finally, industrial design revenue grew strongly ay 12.3 percent QoQ.
As of December 2023, FIIs hold 15.02 percent of the shares, whereas DIIs hold 5.71 percent of the shares in the company, aggregating to 42.43 percent of the institutional holdings. The Promoters’ holdings remain unchanged at 43.92 percent over the last one year.
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries which include Automotive, Broadcast, Communications, Healthcare, and Transportation.
The company started its business in 1989 in Bangalore, to develop and promote applications of electronics, embedded systems, and software, with a mission to encourage innovation and accelerate the adoption of leading-edge technologies.
Written by Shivani Singh
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