Tata Elxsi, a 36-year-old Tata Group backed tech company, reported lower net profit to Rs 190 crore in Q3FY25, compared to Rs 206.43 crore in Q3FY24 and Rs 229.43 crore in Q2FY25. Meanwhile, top-line performance was mixed with revenue from operations coming at Rs 939.17 crore in Q3FY25, which was higher from revenue of Rs 914.23 crore in Q3FY24, but lower from Rs 955.08 crore in Q2FY25.
Other Key Highlights of Q3FY25 are:
- Operating EBITDA at 246.6 Cr, EBITDA Margin at 26.3% - Profit Before Tax (PBT) at Rs. 255.8 Cr, PBT Margin at 26.1% - Profit After Tax (PAT) at Rs. 199.0 Cr, PAT Margin at 20.3%
On the performance, Manoj Raghavan, CEO and Managing Director, Tata Elxsi said, "We continue to see positive outcomes of our strategic business focus on Japan, emerging markets and capitalising on the India opportunity. During the quarter, our revenue from India has grown by 21.9% YoY, while Japan and emerging markets grew at 66.8% YoY. This will serve us well over the next few quarters even as we navigate geopolitical uncertainty, currency volatility and industry specific challenges in Europe and US."
He further said, the automotive industry has seen significant business challenges in the past few months, with OEMs especially in the US and Europe reporting sales and growth challenges in their major markets. This has impacted new deal closures, and Tier 1 supplier spend.
Amidst this business environment, Tata Elxsi continues to do well to win and execute on the large deals won over this year and demonstrate differentiated value to customers, to protect and grow revenues in a difficult quarter for the entire automotive industry, the CEO added.
During the quarter under review, Raghavan said, "we announced an Offshore Development Centre for Suzuki Corporation, Japan to support their global technology, software and engineering development. Suzuki's Chief Technology Officer, Katsuhiro Kato highlighted the importance of the centre as a strategic and core component of Suzuki's innovation strategy, helping it accelerate software and virtual development across Connected, Autonomous and Electric technologies."
Tata Elxsi's CEO highlighted that its Media & Communication business reported QoQ CC growth in a quarter that is typically soft and affected by furloughs.
For Q4FY25, the CEO said, "We step into the fourth quarter of this financial year with the confidence of large automotive deal wins in the year and quarter that will see continued ramp-ups even as we navigate the current volatility in the automotive market; the stability and return to growth in our healthcare and media & communications verticals, and large strategic deals in the pipeline across all our key verticals"
Tata Elxsi is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.
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