Tata Elxsi Q3 profit up 44% at Rs 151 crore in December quarter

Tata Elxsi on Tuesday said its net profit increased 43.5 per cent to Rs 151 crore in December quarter 2021-22.

The company is among the world's leading design and technology services providers across industries, including Automotive, Broadcast, Communications, Healthcare, and Transportation.

It had registered a net profit of Rs 105.2 crore in the year-ago period, Tata Elxsi said in a regulatory filing.

Revenue from operations rose 33.2 per cent to Rs 635.4 crore in the quarter from Rs 477.1 crore in the year-ago period, it added.

The company delivered industry-leading bottom-line performance and crossed the Rs 200 crore PBT (profit before tax) and Rs 150 crore PAT (profit after tax) milestones for the first time in its history, the statement said.

Tata Elxsi's constant currency revenue was up 6.5 per cent quarter-on-quarter and 32.7 per cent year-on-year.

"The company's growth was powered by Embedded Product Design (EPD), the company's largest division, which grew at 9.9 per cent q-o-q and 36 per cent y-o-y," it added.

Within EPD, the Transportation business posted a strong growth of 9.7 per cent quater-on-quarter and 30.9 per cent year-on-year, with secular growth across Electric, Autonomous and Connected technologies, and continued momentum with both OEMs and suppliers for design, technology and digital services across geographies.

Media and Communications delivered another quarter of consistent growth with 6.5 per cent rise sequentially and 31.1 per cent year-on-year, supported by the addition of marquee global customers, and strategic platform and solution-led multi-year deal wins, the statement said.

It noted that healthcare continued its accelerated growth at 22 per cent quarter-on-quarter and 73.4 per cent year-on-year, supported by large deals and continued growth in digital health, digital engineering and regulatory services.

The Design business (IDV) continues to fuel strategic design-led digital deal wins for the company with a growth of 61.7 per cent on a year-to-date basis.

"We continue to execute strongly on all our key strategies, driving growth across our three primary industry verticals and regions, building on our software and digital product engineering capabilities," Tata Elxsi CEO and Managing Director Manoj Raghavan said.

He added that the company is seeing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers across Electric, Autonomous, Connected and Digital, underscoring its technology and engineering leadership.

"We have won strategic multi-year large deals this quarter against the best global competitors in all three industries, which clearly underscores the differentiation we bring to our customers, and the relevance of our design-led technology capabilities," he said.

He further said the "superior topline and bottom-line performance was supported by industry-leading operational excellence and talent retention".

"We are continuing to invest in our talent pipeline to support continued growth. We are entering the fourth quarter with the confidence of a strong order book and a healthy deal pipeline across key markets and industries, Raghavan added.