Tata Elxsi (TATAELXSI) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 sales and services rose 21% YoY to Rs 185.77 cr; profit before tax increased 57% to Rs 31.73 cr and profit after tax rose 50% to Rs 26.29 cr.

• Software Development & Services drove growth, while Systems Integration & Support contracted; operations benefited from higher global technology spending and new customer wins.

Financial highlights

• Total income was Rs 186.85 cr vs Rs 155.01 cr; total expenditure rose 15% to Rs 155.12 cr, slower than revenue growth.

• Profit before tax was Rs 31.73 cr vs Rs 20.16 cr; profit after tax was Rs 26.29 cr vs Rs 17.55 cr.

• Personnel expenses rose 49% YoY to Rs 92.71 cr, reflecting higher staffing and overseas deployment; cost of sales fell 34% to Rs 30.18 cr as Systems Integration sales declined.

Outlook and guidance

• Design Engineering Services identified potential for sizeable growth in automotive styling, consumer product design and FMCG packaging; Visual Computing Labs expected to grow significantly.

• Recruitment and training investment were stepped up and expected to continue; expansion plans included evaluating additional development-center locations.