 "Tata Elxsi Q3 results: PAT falls 3.6% to Rs 199 cr, revenue at Rs 939 cr")
Indian engineering and technology services firm Tata Elxsi reported a smaller-than-expected third-quarter revenue on Thursday, hurt by sluggish demand in its media and communications division.
The company's revenue from operations rose 2.7 per cent to Rs 939 crore ($109.40 million) for the quarter ended Dec. 31, below analysts' estimate of Rs 969 crore, according to data compiled by LSEG.
Its net profit fell 3.6 per cent to Rs 199 crore, but was in line with analysts' expectations of Rs 200 crore.
Revenue from the company's media and communications unit fell 5.5 per cent year-on-year. The division accounts for about 32.4 per cent of revenue from its software development and services segment, which, in turn, contributes more than 97 per cent to total revenue. Also Read: TCS Q3 results: Net profit rises 12% to Rs 12,380 cr, revenue up 5.6%
Shares of the company closed 0.5 per cent lower ahead of results on Thursday.
Key Context
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Engineering, research and design (ER&D) services - which include technology support to industries such as transportation and communications - contribute a sixth of the revenue to India's $254 billion technology sector.
Tata Elxsi provides ER&D services for telecom and media players in areas such as advertising technology services and Wi-Fi testing services.
The company was negatively impacted in the quarter by a continuing slowdown in the communications business and headwinds in the automotive segment, analysts said.
L&T Technology Services will report results on Jan. 15.