Tata Elxsi Q1 Results: Profit up 2% YoY to Rs 189 cr, revenue jumps 17%

BENGALURU (Reuters) - Indian design and technology services firm Tata Elxsi on Monday posted its smallest rise in profit in 15 quarters.

The company's profit rose marginally by 2.2% year-on-year to 1.89 billion rupees ($23 million) in the quarter ended June 30, while revenue from operations climbed 17.1% to 8.5 billion rupees ($103.6 million).

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WHY IT MATTERS

Large Indian IT services companies have flagged discretionary spending cuts by clients and an uncertain demand environment.

Tata Elxsi on Monday said some deal closures were delayed in this quarter, while it saw muted growth in its media and communications business as the media, telecom and technology sector is "still soft" globally, and the company remains cautious on short-term growth in this sector.

PEER COMPARISON

Valuation (next Estimates (next Analysts' sentiment

12 months) 12 months)

RIC PE EV/EBIT Revenue profit Mean Number Stock to Div

DA growth growth rating of price yield

* analysts target** (%)

Tata Elxsi Ltd 54.84 39.71 18.20 13.31 Sell 6 1.24 0.78

L&T Technology 32.11 19.97 19.14 12.84 Sell 23 1.15 1.10

Services Ltd

KPIT Technologies Ltd 50.86 30.10 28.25 34.57 Hold 8 1.14 0.22

Cyient Ltd 20.54 12.00 16.37 27.37 Buy 14 1.10 1.80

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from Refinitiv

-- $1 = 82.0270 Indian rupees

 

(Reporting by Ashish Chandra in Bengaluru; Editing by Nivedita Bhattacharjee and Varun H K)