Tata Elxsi (TATAELXSI) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw steady growth with revenues from operations at INR 926.5 crores (₹92,645.52 lakhs), up 2.4% QoQ and 8.4% YoY in constant currency, and an unmodified audit opinion from statutory auditors.

• Transportation segment led growth, now over 50% of software development & services revenue, while media & communication showed resilience and healthcare faced a decline due to project renewal delays.

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

• Audited financial results for the quarter ended June 30, 2024, were approved by the Board on July 10, 2024.

Financial highlights

• Revenue: INR 926.5 crores (₹92,645.52 lakhs), up 2.4% QoQ and 8.4% YoY in constant currency; reported revenue up 9.0% YoY and 2.3% QoQ.

• EBITDA: INR 252.3 crores, flat YoY; margin at 27.2% (adjusted 29.4% excluding one-off expense); PBT at INR 252.4 crores (+1.6% YoY, -3.8% QoQ); PAT at INR 184.1 crores (-2.5% YoY, -6.5% QoQ).

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

• One-time expense of INR 19.78 crores for Progressive Electoral Trust impacted margins.

• Other income rose 44.5% YoY to ₹32.1 crores.

Outlook and guidance

• Management maintains guidance for FY25 revenue growth to exceed FY24, with margin guidance at 28-29% for the year and levers in place to manage wage hikes and utilization.

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

• Results prepared in accordance with Ind AS and reviewed by the Audit Committee and Board.