Tata Elxsi Ltd., a leading design and technology services firm, has released its first quarter results for the period ending June 30, 2024. The company reported a 3% year-on-year (YoY) decline in net profit, which stood at ₹184.1 crore, compared to ₹188 crore in the same quarter of the previous fiscal year.
Key Financial Highlights:
Sector Performance:
Transportation: The transportation sector experienced a 5.3% quarter-on-quarter (QoQ) growth in constant currency (CC), driven by significant deal wins and the ramp-up of software-defined vehicle (SDV) engagements.
Management Commentary:
Manoj Raghavan, CEO and Managing Director of Tata Elxsi, expressed satisfaction with the company's performance, stating, "We are happy to report a healthy performance in the first quarter with a top-line growth of 2.3% quarter-on-quarter and 9% year-on-year. Our healthcare & lifesciences business reported a decline in topline by 4.3% QoQ in constant currency. This is largely due to delay in renewals of some projects at one of our large customers."
Stock Market Reaction:
At 9.17 am, Tata Elxsi shares were quoting Rs 6,950.1 on the NSE, lower by 2.4 percent compared to the previous session's closing price.
Summary:
Tata Elxsi continues to show resilience in its operations despite the fluctuations in profit, driven by its strong performance across various sectors and strategic deal wins. The company's focus on maintaining robust growth in key areas like transportation and system integration services positions it well for future success.
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