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Tata Elxsi, a Tata group company, reported a year-on-year (YoY) decline of 2.5% in net profit for the first quarter ending June 2024, with the net profit standing at Rs 184.1 crore compared to Rs 188.9 crore in Q1FY24. Sequentially, net profit fell by 6.5% from Rs 196.9 crore in Q4FY24.
The company's profit was negatively affected by a decline in its healthcare and life sciences segment, which decreased by 4.3% from the previous quarter and 0.5% from the same period last year. Additionally, the media and communications segment saw a YoY decline of 3.8%, though it slightly increased by 0.5% QoQ.
Revenue for Q1FY25 increased by 9% YoY to Rs 926.5 crore from Rs 850.3 crore in Q1FY24, and rose 2.3% sequentially from Rs 905.9 crore in Q4FY24. In constant currency terms, revenue grew 8.4% YoY and 2.4% QoQ.
Manoj Raghavan, CEO and MD of Tata Elxsi, highlighted the transportation business's strong growth, reporting a 5.3% QoQ and 20.3% YoY increase in constant currency, now accounting for over 50% of the company's software development and services business. Raghavan expressed confidence in capturing growth opportunities in the upcoming quarters, driven by the transformation of the automotive industry and software-defined vehicles.
Revenue from Europe rose to 42.2%, up from 40.3% in the previous quarter and 37.4% a year ago. Revenue shares from India and the rest of the world also increased to 17.6% and 6.5% respectively, while the Americas' share dropped to 33.7% from 36% in Q4FY24 and 40.2% in Q1FY24.
Operating margins declined to 24.3% YoY and QoQ, compared to 27.1% in Q1FY24 and 25.8% in Q4FY24.
The company reduced its headcount by 257 employees during the quarter, bringing the total number of employees to 13,142 as of the end of June. However, this was an increase of 856 employees from 12,286 in Q1FY24. Attrition improved slightly to 12.3% from 12.4% in Q4FY24 and 15.6% a year ago.
Tata Elxsi's results were announced after market hours on Wednesday. Prior to the announcement, the company’s shares closed at Rs 7118.80 per share, marking a 1.4% increase from the previous close on the BSE.
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