Tata Elxsi for the quarter ended Dec 2020 reported 11% growth in revenue to Rs 477.10 crore up from Rs 430.18 crore of revenue registered in sequential previous quarter ended Sep 2020. On constant currency basis all three businesses Embedded Product Design (EPD), Industrial Design & Visualisation (IDV) and System Integration & Support (SIS) has registered 8.5%QoQ, 25.3%QoQ and 16.1%QoQ respectively. With-in EPD, the core transportation registered a CC growth of 6.9%QoQ and the broadcast & communications was up by 7.3%. Similarly the healthcare sustained its sharp growth with 23.5%QoQ growth. As OPM expand by 270 bps to 30.1% (from 27.4% in sequential previous quarter) the operating profit stood higher by 22% to Rs 143.61 crore. With other income stand lower by 242% to Rs 15.09 crore, the PBIDT was up by 30% to Rs 158.70 crore. Excluding exchange gain of Rs 7.4462 crore (against a loss of Rs 1.94 crore in Q2FY21)the other income was up 20%QoQ to Rs 7.64 crore. After accounting for higher interest cost (up 4%QoQ to Rs 1.35 crore) and lower depreciation (down 1% to Rs 11.05 crore), the PBT was up by 33% to Rs 146.29 crore. Eventually the PAT was up by 33%qoq to Rs 105.20 crore as taxation stand higher by 32% to Rs 41.09 crore. Quarterly performance YoY comparison
Sales was up by 13%yoy to Rs 477.10 crore. That together with 790 bps expansion in OPM to 30.1%, the operating profit jumped up 52% to Rs 143.61 crore.
The PBT was up by 43% to RS 146.29 crore after accounting for lower other income, lower interest and lower depreciation. Eventually the PAT was up by 39% to Rs 105.20 crore with taxation stand higher by 54%yoy to Rs 41.09 crore.
Nine month performance
Sales for the period was up by 12%yoy to Rs 1307.76 crore and with OPM expand by 710 bps to 27.1% (from 20% in 9mFY20), the operating profit witnessed a jump of 51% to Rs 354.37 crore.
Sharp expansion in OPM is largely as the company account/charge Rs 21.63 crore of expense towards special retiral benefit payable to managing director made during Q2FY20 under the head employee benefit expenses.
The growth at PBT moderated to stand at 44% to Rs 350.20 crore hit by lower other income and higher depreciation. The PAT was up by 45% to Rs 252.95 crore with taxation stand higher by 42% to Rs 97.24 crore in absolute terms but the tax rate stand lower at 27.8% compared to 28.3% in corresponding previous period.
Management comment
Manoj Raghavan, CEO and Managing Director of the company said, It was a pretty satisfying quarter with all-round growth across industries and geographies. We continue to execute strongly on both top line and bottom line, with double digit QoQ revenue growth and industry leading operating margins. Our Healthcare business continues to accelerate, while Media and Communications reported another strong quarter of sustained growth. We have seen new customer additions and large deals in both industries in the quarter. We are seeing sustained recovery in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to resumption of projects as well as deals with Tier1 suppliers. We have added new automotive customers including a new age OEM in North America. We have also closed some large deals including a multi-million dollar deal with a European Tier1 supplier for vehicle electronics and software, and a North American Tier1 supplier for autonomous driving. The growth in our design business has been equally satisfying. Customers are now recognizing the value of our integrated design and product engineering offerings to support innovation and enhanced customer experience, across verticals. We have also closed a large deal with a leading global technology company. We are entering the fourth quarter and a new year with the reinforced confidence of a strong deal pipeline across markets and industries, and capabilities in product engineering, design and digital, that make our offerings more relevant and our market position stronger than ever before.
Tata Elxsi: Financial Results
| 2012 (3) | 2009 (3) | Var. (%) | 1912 (3) | Var. (%) | 2012 (9) | 1912 (9) | Var. (%) | 2003 (12) | 1903 (12) | Var. (%) |
| Sales | 477.10 | 430.18 | 11 | 423.44 | 13 | 1307.76 | 1170.98 | 12 | 1609.86 | 1596.93 | 1 |
| OPM (%) | 30.1 | 27.4 | | 22.2 | | 27.1 | 20.0 | | 21.3 | 26.0 | |
| OP | 143.61 | 118.05 | 22 | 94.19 | 52 | 354.37 | 234.40 | 51 | 343.00 | 415.03 | -17 |
| Other Inc. | 15.09 | 4.41 | 242 | 20.52 | -27 | 32.94 | 45.02 | -27 | 58.41 | 43.46 | 34 |
| PBIDT | 158.70 | 122.46 | 30 | 114.72 | 38 | 387.31 | 279.43 | 39 | 401.42 | 458.50 | -12 |
| Interest | 1.35 | 1.30 | 4 | 1.44 | -7 | 4.03 | 4.12 | -2 | 5.56 | 0.00 | |
| PBDT | 157.35 | 121.16 | 30 | 113.27 | 39 | 383.28 | 275.31 | 39 | 395.85 | 458.50 | -14 |
| Dep. | 11.05 | 11.21 | -1 | 11.22 | -1 | 33.08 | 32.63 | 1 | 43.41 | 25.10 | 73 |
| PBT before EO | 146.29 | 109.95 | 33 | 102.06 | 43 | 350.20 | 242.68 | 44 | 352.44 | 433.40 | -19 |
| EO | 0.00 | 0.00 | | 0.00 | | 0.00 | 0.00 | | 0.00 | 0.00 | |
| PBT | 146.29 | 109.95 | 33 | 102.06 | 43 | 350.20 | 242.68 | 44 | 352.44 | 433.40 | -19 |
| Tax | 41.09 | 31.07 | 32 | 26.64 | 54 | 97.24 | 68.66 | 42 | 96.34 | 143.43 | -33 |
| PAT | 105.20 | 78.88 | 33 | 75.42 | 39 | 252.95 | 174.02 | 45 | 256.10 | 289.97 | -12 |
| EPS * (Rs) | 67.6 | 50.7 | | 48.4 | | 54.2 | 37.3 | | 41.1 | 46.6 | |
* Paid up equity capital is Rs 62.2764 crore, Face value Rs 10
Figures in crore (P): Projections PL: Profit to Loss
Source: Capitaline Databases |
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