Tata Elxsi, the 35-year-old tech giant of Tata Group has declared its highest dividend reward ever to the tune of Rs 70 per share which will be paid in the coming weeks. This comes after Tata Elxsi reported double-digit growth in its earnings for the full-year FY24 with profit before taxes crossing Rs 1,000 crore for the first time. Despite, the challenging environment in the technology sector, Tata Elxsi's earnings were stable.
Tata Elxsi Dividend:
In its regulatory filing, on April 23, Tata Elxsi said, we are pleased to inform you that the Board of Directors has recommended a dividend of 700% at Rs. 70/-, per equity share of Rs. 10 each, for the financial year 2023-24, subject to tax, which shall be paid/dispatched on or after the seventh day from the conclusion of the 35th Annual General Meeting, subject to the approval of the shareholders of the Company."
This is the highest-ever dividend payout by Tata Elxsi compared to its payout of Rs 60.60 per share in FY23.
Since June 2001, Tata Elxsi has delivered up to 24 dividends, as per Trendlyne data. The highest dividend payout was Rs 60.60 dividends per share in 2023. However, since its bonus issue in 2017, the company has delivered as much as Rs 208.1 dividend per share in 7 years cumulatively.
Out of which, massive dividends were paid after the Covid-era. From June 2020 to 2023, Tata Elxsi has delivered up to Rs 167.6 dividends per share.
Tata Elxsi Earnings:
In Q4FY24, Tata Elxsi's PBT was at Rs 262.4 crore, up 4.9% YoY, while revenues were at Rs 905.9 crore up by 0.9% QoQ and 8.1% YoY. EBITDA margin was at 28.8%.
Further, in overall FY24, Tata Elxsi's revenue was at Rs 3,552.1 crore, registering double-digit 13% YoYg growth, while in constant currency the company recorded 9.3% YoY growth in software development and services and 18.6% YoY growth in system integration and support segment. PBT was up 11.9% to Rs 1,048 crore, surpassing the Rs 1,000 crore mark for the first time. EBITDA margins stood at 29.5%.
Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company's performance in the financial year 2023-24, said: The financial year 2024 has been a year of consistent operational performance with revenue growth of 13% despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters. We have done well to maintain industry leading EBITDA margin at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1535 Elxsians through the year.
For FY25, Raghavan said, "We are entering the new financial year with a commitment for growth, and the continued confidence in our differentiated design-led engineering capabilities."
He added, "This is backed by strategic relationships we have built over years with key customers, the qualitative change in revenues towards OEMs and SDV programs, entries into new operators and marquee healthcare logos, investments in strategic technology areas and AI, and the strong deal pipeline we carry into the new financial year."
Tata Elxsi Share Price:
On BSE, Tata Elxsi's share price stood at Rs 7393.85 apiece, down by 0.6% with a market cap of Rs 46,046.27 crore.
The stock will react to the upcoming dividend payout and Q4 earnings on Wednesday.
Tata Elxsi's share has 52-week high and low of Rs 9,191.10 and Rs 6,217.90 apiece. Before the Q4 earnings, the highest target price on Tata Elxsi was Rs 9,000 apiece by Prabhudas Lilladher, but this is going to change after the latest financial results.
Tata Elxsi Bonus Issue:
Apart from the dividend payout, Tata Elxsi has paid only one bonus share till now. It was in September 2017 when Tata Elxsi turned ex-bonus on the 18th of that month for a bonus issue in the ratio of 1:1. It meant Tata Elxsi paid 1 bonus share on every existing 1 share.
About Tata Elxsi:
Tata Elxsi is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.
Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.
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