Tata Elxsi delivers another strong quarter with a QoQ growth of 10.9% in revenues and 33.3% in Profits After Tax

BANGALORE, India, Jan. 12, 2021 /PRNewswire/ -- Tata Elxsi (BSE: 500408) (NSE: TATAELXSI), among the world's leading providers of design-led technology services, announced its results for the third quarter ended December 31, 2020.

Company reported ₨ 477.1 Cr of revenue from operations, registering a growth of 10.9% QoQ and 12.7% YoY. During the period reported, company generated PBT of Rs 146.3 Cr, registering a growth of 33.1% QoQ and 43.4% YoY. Company's net profit for the quarter stood at Rs 105.2 Cr, reporting a growth of 33.3% QoQ and 39.5% YoY.

Highlights of the Quarter Ended December 31, 2020

• Total Income at Rs. 492.2 Cr, +13.2% QoQ, +10.9% YoY
• Revenues from operations at Rs. 477.1 Cr, +10.9% QoQ, +12.7% YoY
• Operating Margin at 30.1%; Net Margin at 21.4%
• Highest ever PAT of Rs. 105.2 Cr
• Net headcount of 6816, with industry leading attrition management of 6.1%

The growth was driven by strong performance in both key divisions

• Embedded Product Design (EPD) grew by 9.3% QoQ, 14.5% YoY
• Industrial Design and Visualisation (IDV) grew by 27.5% QoQ, 7.1% YoY

Q3 segment highlights:

Industries:

• Transportation reported a smart recovery with revenue growth of 7.9% QoQ, led by deals and new projects in the automotive sector.
• Media and Communications continued on the growth path with revenue growth of 8.0% QoQ.
• Healthcare business accelerated further with revenue growth of 24% QoQ, supported by key deal wins and customer additions.

Markets:

• The company saw all-round market growth, with Americas reporting 15.9% growth QoQ, while Europe reported 6.2% QoQ growth aided by key automotive deal wins. India reported accelerated growth of 19.9% QoQ.
• The company received industry analyst recognition as a leader in its key industry verticals, and specialist leadership in growth areas such as OTT, ADAS, 5G and Network Transformation.

Commenting on the performance, Mr. Manoj Raghavan CEO and Managing Director, Tata Elxsi said:

"It was a pretty satisfying quarter with all-round growth across industries and geographies. We continue to execute strongly on both top line and bottom line, with double digit QoQ revenue growth and industry leading operating margins.

Our Healthcare business continues to accelerate, while Media and Communications reported another strong quarter of sustained growth. We have seen new customer additions and large deals in both industries in the quarter.

We are seeing sustained recovery in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to resumption of projects as well as deals with Tier1 suppliers. We have added new automotive customers including a new age OEM in North America. We have also closed some large deals including a multi-million dollar deal with a European Tier1 supplier for vehicle electronics and software, and a North American Tier1 supplier for autonomous driving.

The growth in our design business has been equally satisfying. Customers are now recognizing the value of our integrated design and product engineering offerings to support innovation and enhanced customer experience, across verticals. We have also closed a large deal with a leading global technology company. 

We are entering the fourth quarter and a new year with the reinforced confidence of a strong deal pipeline across markets and industries, and capabilities in product engineering, design and digital, that make our offerings more relevant and our market position stronger than ever before."

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. For more information, please visit www.tataelxsi.com

Media Contact
Tata Elxsi 
Hari Balan
Corporate Communications
+91-80-2297-9123 
Email: [email protected]

SOURCE Tata Elxsi