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Investors dumped the shares of Tata Elxsi in loads on Friday after the company reported a subdued third quarter earnings for the financial year 2024-25 (Q3FY25). Tata Elxsi share price plunged 7.89 per cent at Rs 5935.05 per share on the BSE in intraday trade.
Tata Elxsi reported a 13.3 per cent quarter-on-quarter decline in net profit for the period ending December 31, 2024, with a profit of Rs 199 crore, compared to Rs 229.4 crore in the previous quarter. The company’s revenue for the quarter stood at Rs 939.2 crore, marking a 1.7 per cent decrease from Rs 955.1 crore in the September quarter.
Earnings Before Interest, Tax, Depreciation, and Amortisation (Ebitda) also saw a decline of 7.7 per cent, falling to Rs 220.7 crore from Rs 239.2 crore in the prior quarter. The Ebitda margin decreased to 24.2 per cent from 25.7 per cent in the September quarter.
Tata Elxsi announced that it secured a significant multi-year contract with a US-based MSO to develop and manage their application portfolio, with plans to scale this engagement over the next few quarters.
Manoj Raghavan, CEO and Managing Director of Tata Elxsi, highlighted the company’s continued success in key markets such as Japan, emerging markets, and India. Revenue from India grew by 21.9 per cent Y-o-Y, while Japan and emerging markets saw a 66.8 per cent YoY increase. He emphasised that despite challenges like geopolitical uncertainty, currency fluctuations, and industry-specific issues in Europe and the US, Tata Elxsi remains well-positioned for growth in the coming quarters.
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Raghavan also noted that Tata Elxsi is progressing with several large deals and expects significant developments in the near future, with decisions and outcomes anticipated in the upcoming quarters.
On the equities front, the share price of Tata Elxsi has underperformed the market in the last six months, falling 16 per cent, while slipping 32 per cent in the last one year. In comparison, the BSE Sensex has lost 3 per cent in the last six months and has gained 7 per cent in the last one year.
At 9:54 AM, the stock price of the company was trading 7.51 per cent lower at Rs 5,954.90 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.38 per cent to
77,323.46 level.
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