Bengaluru-based engineering service provider data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/tata-elxsi-ltd/stocks/companyid-12207.cms” rel=”noopener”>Tata Elxsi’s data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/net-profit” target=”_blank” rel=”noopener”>net profit declined by 4.5% sequentially at Rs 197 croreore, in the final quarter of data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/fy24″ target=”_blank” rel=”noopener”>FY24. Dragged down by its falling margin that dropped by 100 basis points (bps) on-year and a one-time ramp-down, the tech firm’s net profit was also down by 2.3% on-year.
The engineering service provider also saw its Q4 data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/definition/revenue” rel=”noopener”>revenue at Rs. 905.9 crore, down by 0.9% QoQ. This the first time after Q1 of FY21, where the company saw a sequential revenue decline. For the full fiscal its revenue grew by 13% on-year at Rs 3,552 croreore. Tata Elxsi said that it was impacted by its media and communication vertical which declined by 4.6% in constant currency terms in data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/q4″ target=”_blank” rel=”noopener”>Q4 and also saw a one-time ramp-down by a customer.

Manoj Raghavan, CEO and MD, Tata Elxsi, said, “Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroreoeconomic uncertainties and volatility in the media and communications industry over the last few quarters. We have done well to maintain industry leading EBITDA margins at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1,535 Elxsians through the year.”

He added, “We are entering the new financial year with a strong commitment for growth, and continued confidence in our differentiated design-led engineering capabilities. This is backed by strong customer relationships, addition of marquee logos, large deal wins, especially in SDV (Software Development Services), investments in AI and GenAI, and a strong deal pipeline for the year ahead.”

While attrition fell by 50 bps to 12.4% in Q4 of FY24 from 12.9% in Q3, the company’s headcount incroreeased by 178 to end the year at 13,399. It said that 25% of its entire talent base to be AI ready by Q3 FY25. It has already partnered with Nvidia, AWS, Microreosoft, Google, Intel, and Brainchip. data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/tata-elxsi-ltd/stocks/companyid-12207.cms” rel=”noopener”>Tata Elxsi’s AI Lab at Indian Institute of Science (IISc) is also equipped with Nvidia GPU infrastructure for advanced research in AI/ML.

Bengaluru-based engineering service provider data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/tata-elxsi-ltd/stocks/companyid-12207.cms” rel=”noopener”>Tata Elxsi’s data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/net-profit” target=”_blank” rel=”noopener”>net profit declined by 4.5% sequentially at Rs 197 croreore, in the final quarter of data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/fy24″ target=”_blank” rel=”noopener”>FY24. Dragged down by its falling margin that dropped by 100 basis points (bps) on-year and a one-time ramp-down, the tech firm’s net profit was also down by 2.3% on-year.
The engineering service provider also saw its Q4 data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/definition/revenue” rel=”noopener”>revenue at Rs. 905.9 crore, down by 0.9% QoQ. This the first time after Q1 of FY21, where the company saw a sequential revenue decline. For the full fiscal its revenue grew by 13% on-year at Rs 3,552 croreore. Tata Elxsi said that it was impacted by its media and communication vertical which declined by 4.6% in constant currency terms in data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/q4″ target=”_blank” rel=”noopener”>Q4 and also saw a one-time ramp-down by a customer.

Manoj Raghavan, CEO and MD, Tata Elxsi, said, “Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroreoeconomic uncertainties and volatility in the media and communications industry over the last few quarters. We have done well to maintain industry leading EBITDA margins at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1,535 Elxsians through the year.”

He added, “We are entering the new financial year with a strong commitment for growth, and continued confidence in our differentiated design-led engineering capabilities. This is backed by strong customer relationships, addition of marquee logos, large deal wins, especially in SDV (Software Development Services), investments in AI and GenAI, and a strong deal pipeline for the year ahead.”

While attrition fell by 50 bps to 12.4% in Q4 of FY24 from 12.9% in Q3, the company’s headcount incroreeased by 178 to end the year at 13,399. It said that 25% of its entire talent base to be AI ready by Q3 FY25. It has already partnered with Nvidia, AWS, Microreosoft, Google, Intel, and Brainchip. data-ga-onclick=”Inarticle articleshow link click#Tech#href” target=”_blank” href=”https://economictimes.indiatimes.com/tata-elxsi-ltd/stocks/companyid-12207.cms” rel=”noopener”>Tata Elxsi’s AI Lab at Indian Institute of Science (IISc) is also equipped with Nvidia GPU infrastructure for advanced research in AI/ML.