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Tata Elxsi surges 9%, hits new high on healthy March quarter results

The company announced a final dividend of Rs 24 per share for the year 2020-21 along with a one-time special dividend of Rs 24 per share, subject to tax

Tata Elxsi plans to drive growth through acquisitions
In Q4FY21, Tata Elxsi’s revenues increased 8.7 per cent quarter-on-quarter (QoQ) to Rs 518 crore
SI Reporter Mumbai
2 min read Last Updated : Apr 23 2021 | 9:47 AM IST
Shares of Tata Elxsi surged 9 per cent to hit a new high of Rs 3,310 on the BSE in intra-day trade on Friday after the company reported a healthy set of March quarter (Q4FY21) numbers. The Tata Group-owned information technology (IT) company also announced a final dividend of Rs 24 per share for the year 2020-21 along with a one-time special dividend of Rs 24 per share, subject to tax.

In Q4FY21, Tata Elxsi’s revenues increased 8.7 per cent quarter-on-quarter (QoQ) to Rs 518 crore, mainly led by 3.9 per cent QoQ growth in transportation, 5.8 per cent QoQ growth in broadcast & communication and 13.3 per cent QoQ growth in healthcare. 

Earnings before interest, taxes, depreciation, and amortization (Ebitda) margin increased from 30.1 per cent to 32.4 per cent on account of higher offshoring and fixed price projects. The profit after tax, meanwhile, rose 9.5 per cent QoQ to Rs 115.20 crore.

The company said growth was led by America and India with both reporting a 21.1 per cent QoQ growth while Europe grew by 1.6 per cent. Both transportation and media and communications reported another steady quarter of sustained growth while the healthcare business continues to grow faster. We have seen new customer additions and large deals in all three industry segments in the quarter, it said.

The company further said that it added key new customers including a Tier-1 operator and a leading medical devices manufacturer in North America. It also closed some large deals including a multi-million dollar deal with a global OEM for an integrated connected vehicle program in one of their key markets that will leverage IoT platform.

ICICI Securities believes that in dollar terms, the company would have clocked around 10 per cent QoQ growth and 18 per cent YoY growth. Going forward, the brokerage firm expects Tata Elxsi to register healthy double-digit growth in revenues. This, coupled with improving margin trajectory prompt us to be positive on the stock, it added.

Topics :Tata ElxsiBuzzing stocksQ4 ResultsMarketsTata group

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