Tata Elxsi’s Strong Q2 Performance Spurs Stock Price Surge

Tata Elxsi's Strong Q2 Performance Spurs Stock Price Surge
Tata Elxsi's Strong Q2 Performance Spurs Stock Price Surge
Tata Elxsi's Strong Q2 Performance Spurs Stock Price Surge
Tata Elxsi's Strong Q2 Performance Spurs Stock Price Surge

Tata Elxsi’s Strong Q2 Performance Spurs Stock Price Surge

Tata Elxsi’s Strong Q2 Performance Spurs Stock Price Surge

Tata Elxsi’s Impressive Q2FY24 Results: Tata Elxsi’s Strong Q2 Performance Spurs Stock Price Surge

Tata Elxsi, the design and digital technology subsidiary of the Tata Group, delivered strong results in Q2FY24, causing a notable surge in its stock price. The company reported a consolidated net profit of ₹200 crore, representing a substantial increase of 14.8% compared to the same period last year. Sequentially, the net profit also rose by 5.9%.

Robust Revenue Growth

The company’s consolidated revenue from operations for the September quarter reached ₹881.7 crore, marking a significant increase of 3.7% on a quarter-on-quarter basis and a remarkable 15.5% year-on-year growth. The impressive performance was driven by various segments within the company.

Segmental Growth

  • The transportation business witnessed notable growth of 7.1% QoQ and 26.1% YoY in Q2FY24. This growth was attributed to securing substantial deals and experiencing strong traction in software-defined vehicle (SDV) engagements. During the quarter, Tata Elxsi also secured a multi-year large deal for SDV from a leading automotive original equipment manufacturer (OEM).
  • The healthcare division exhibited growth of 3.6% QoQ and 8.5% YoY, supported by new product engineering, digital health, and regulatory services.
  • The media and communications segment reported marginal growth of 0.1% QoQ and 2.8% YoY. This was driven by platform-led deals and growth in key accounts, despite challenges posed by the industry slowdown.
  • The company’s Industrial Design division reached a significant milestone by crossing ₹100 crore in revenue for the first time in its history, recording a remarkable 35.4% YoY growth in Q2FY24.

Tata Elxsi’s Leadership Statement

Mr. Manoj Raghavan, CEO and Managing Director of Tata Elxsi, expressed satisfaction with the company’s performance in the challenging second quarter of FY24. He emphasized the growth in top-line and EBITDA, showcasing Tata Elxsi’s commitment to delivery excellence, strong account management, and distinctive offerings.

Tata Elxsi operates within various sectors, providing product design and engineering services to industries such as consumer electronics, communications, and transportation. The company also offers systems integration and support services to enterprise clients and is involved in digital content creation for the media and entertainment sectors.

Stock Performance and Future Outlook

While Tata Elxsi’s stock experienced a period of decline after reaching an all-time high of ₹10,760 in August of the previous year, it is essential to note that the stock has demonstrated significant growth over the years. Despite the recent correction, the stock boasts a remarkable return of over 407% in the past three years and an impressive 672% return over the last five years.

Investors and analysts will continue to monitor Tata Elxsi’s performance and its potential to deliver value to shareholders in the evolving landscape of technology and design services.

Facebook
Twitter
LinkedIn
Telegram
WhatsApp
Email
Note: You have to fill-up above all respective field, then click below button for send your message