Tata Elxsi stock surges 3.35% after Q2FY24 earnings

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Tata Elxsi, the design and digital tech arm of Tata Group, witnessed a 3.35% spike in its stock price to reach ₹7,694.40 apiece during early trade on Wednesday after the company delivered a decent set of numbers for Q2FY24. The company released its Q2FY24 numbers post-market hours on Tuesday, with its consolidated net profit surging 14.8% to ₹200 crore. During the same period last year, the company recorded a net profit of ₹174.3 crore.

Sequentially, the net profit was up by 5.9%. The consolidated revenue from operations during the September quarter came in at ₹881.7 crore, up by 3.7% QoQ and 15.5% YoY. The company's transportation business witnessed growth of 7.1% QoQ and 26.1% YoY in Q2FY24, aided by large deals and strong traction in software defined vehicle (SDV) engagements.

During the quarter, the company won a multi-year large deal for SDV from one of the leading automotive OEMs. Its healthcare division grew by 3.6% QoQ and 8.5% YoY, driven by new product engineering, digital health, and regulatory services. Media and Communications grew marginally at 0.1% QoQ and 2.8% YoY, aided by platform-led deals and growth in key accounts, amidst widespread industry slowdown.

Further, the company's Industrial Design division crossed ₹100 crore revenue for the first time in company history, growing 35.4% YoY in Q2 FY24, according to the company's earnings report. Mr. Manoj Raghavan, CEO and Managing Director of Tata Elxsi, commenting on the company’s performance in the second quarter of FY24, said, “We are happy to report a healthy performance in the second quarter with a top-line growth of 3.7% QoQ and 15.5% YoY in a challenging quarter for the industry." "Our EBITDA has grown 4.8% QoQ and 16.3% YoY, and our EBITDA margin