Tata Elxsi (TATAELXSI) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw steady growth, with revenues from operations at ₹92,645.52 lakhs (INR 926.5 crores), up 2.4% QoQ and 8.4% YoY in constant currency terms, led by the Transportation segment now over 50% of SDS revenue.

• EBITDA was ₹25,230 lakhs (INR 252.3 crores), flat YoY, impacted by a one-time expense of ₹1,978 lakhs (INR 19.78 crores) for a contribution to the Progressive Electoral Trust.

• Transportation business led growth, while healthcare saw a decline due to project renewal delays; media and communication showed resilience with slight growth.

• Strong deal pipeline and continued investments in digital, AI, and GenAI technologies across verticals, targeting 25% of staff to be AI-ready by December.

• Audited financial results for the quarter ended June 30, 2024, were approved by the Board with an unmodified audit opinion from the statutory auditors.

Financial highlights

• Revenue from operations: ₹92,645.52 lakhs (INR 926.5 crores), up 2.4% QoQ and 8.4% YoY in constant currency.

• EBITDA: ₹25,230 lakhs (INR 252.3 crores), flat YoY (+0.3%).

• PBT: ₹25,240 lakhs (INR 252.4 crores), down from ₹26,240 lakhs in the previous quarter.

• PAT: ₹18,407.99 lakhs (INR 184.1 crores), down 2.5% YoY and 6.5% QoQ.

• EPS (Basic) at ₹29.56, down 6.5% QoQ and 2.5% YoY.

Outlook and guidance

• Management maintains guidance for FY25 revenue growth to exceed FY24, despite healthcare headwinds in H1.

• Margin guidance remains at 28-29% for the year, with levers in place to manage wage hikes and costs.

• Confident outlook for Q2 FY25, driven by a robust deal pipeline and expansion with strategic customers.