Tata Elxsi (TATAELXSI) Q4 02/03 earnings summary

Executive summary

• FY2002-03 sales and services were Rs. 109.60 crore; profit after tax was Rs. 11.69 crore, while global recession and customer spending cuts weighed on demand.

• Business mix shifted toward Software Development & Services, which represented 71% of the two main segments’ business mix, versus 49% in FY2001-02.

Financial highlights

• Total income was Rs. 111.28 crore versus Rs. 131.96 crore; profit before tax was Rs. 15.06 crore versus Rs. 20.22 crore.

• Profit after tax was Rs. 11.69 crore versus Rs. 16.75 crore; basic and diluted EPS was Rs. 3.75 versus Rs. 5.37.

• Cost of sales fell to Rs. 19.92 crore from Rs. 47.07 crore, while personnel expenses rose to Rs. 50.43 crore from Rs. 43.47 crore.

Outlook and guidance

• New customers in automotive and communications generated significant current-year revenue, with potential for high growth; the Trivandrum center focuses on automotive-sector needs.

• Visual Computing Labs, established during the year, progressed well and had promising prospects for new business.