Technology services firm Tata Elxsi on July 17 posted a marginal 2 percent year-on-year increase in net profit at Rs 189 crore in the first quarter ended June 2023, its smallest rise in profit in 15 quarters.
The company had registered a net profit of Rs 185 crore in the year-ago period.
The revenue from operations grew by 17 percent to Rs 850 crore during the quarter from Rs 726 crore in June 2021 quarter.
The company's EBITDA, or earnings before interest, taxes, depreciation and amortization, rose 4.1 percent to Rs 230 crore from Rs 221 crore in the same quarter last fiscal, while its operating margins decreased to 27.1 percent in Q1FY24 from 30.5 percent in Q1FY23.
Commenting on the company’s performance, Manoj Raghavan, CEO and Managing Director, Tata Elxsi said,"While the overall global economic outlook remains challenging, our customer focus and targeted efforts to keep the growth momentum going is showing good results."
Tata Elxsi's healthcare business grew by 3.4 percent quarter-on-quarter. ". This vertical also reported new product development deal wins for medical diagnostics and smart hospital equipment," Raghavan said.
Further, in the transportation business, the company saw "good traction and a strong deal pipeline, especially in Software defined vehicles and EV."
"While some deal closures were delayed in this quarter, we won significant new deals including a strategic multi-year multi-million US$ SDV deal with a leading Asian OEM for their SDV platform and software development, and a multi-country licensing and deployment of our Connected vehicle platform with a global Top 5 OEM."
"To expand our automotive and smart mobility focus in North America, we have opened an Innovation Hub and nearshore engineering centre in Troy, Michigan that will innovate along with leading institutes and technology ecosystem in the region," Raghavan added.
Meanwhile, shares of Tata Elxsi on July 17 closed 0.30 percent lower at Rs 7,710.85 apiece on BSE.
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