Tata Elxsi, part of the Tata group companies, reported a 2.5% year-on-year decline in net profit at Rs 184.1 crore for the first quarter ending June 2024. This compares with profit after tax of Rs 188.9 crore in the year ago quarter Q1FY24.

Net profit dipped 6.5% quarter-on-quarter (QoQ) from Rs 196.9 crore in the fourth quarter ending March 2024.

The Bengaluru-headquartered design and technology services firm’s profit was impacted by weaker growth in its healthcare and life sciences segment which was lower by 4.3% from previous quarter and 0.5% from a year ago. Its media and communications vertical also weakened by 3.8% YoY and marginally edged up by 0.5% QoQ.

Revenue for Q1FY25 grew by 9% YoY to Rs 926.5 crore from Rs 850.3 in Q1FY24. Sequentially, revenue rose by 2.3% from Rs 905.9 crore. In constant currency terms, revenue grew 8.4% YoY and 2.4% QoQ.

“Our transportation business reported a strong growth of 5.3% QoQ and 20.3% YoY in constant currency, and now accounts for more than 50% of our software development & services business. We believe we are positioned well to capture growth opportunities in the coming quarters as we continue to enable the continued transformation of the automotive industry and software defined vehicles,” said Manoj Raghavan CEO and MD of Tata Elxsi.

The total revenue share from Europe continued to increase to 42.2%, up from 40.3% in the previous quarter and 37.4% in the year-ago quarter. India and rest of the world share also steadily increased at 17.6% and 6.5% while Americas revenue share dipped to 33.7% from 36% in Q4 and 40.2% last year.

We step into the second quarter of this financial year with the confidence of a strong deal pipeline, continued growth in our transportation business and expansion of business with strategic customers across verticals, Raghavan added.Its operating margins declined to 24.3% both YoY and sequential basis from 27.1% and 25.8% in last year’s Q1 and Q4, respectively.

On employee front, Tata Elxsi’s lowered its headcount by 257 during the quarter with total employees at 13,142 at the end of June. From a year ago, the headcount increased by 856 from 12,286 in Q1FY24.

During the quarter, its attrition continued to improve to 12.3% from 12.4% in Q4FY24 and 15.6% last year.

The results were announced after market hours on Wednesday. Before that, Tata Elxsi’s shares closed at Rs 7118.80 per share, 1.4% higher from the previous close on the BSE.

Tata Elxsi, part of the Tata group companies, reported a 2.5% year-on-year decline in net profit at Rs 184.1 crore for the first quarter ending June 2024. This compares with profit after tax of Rs 188.9 crore in the year ago quarter Q1FY24.

Net profit dipped 6.5% quarter-on-quarter (QoQ) from Rs 196.9 crore in the fourth quarter ending March 2024.

The Bengaluru-headquartered design and technology services firm’s profit was impacted by weaker growth in its healthcare and life sciences segment which was lower by 4.3% from previous quarter and 0.5% from a year ago. Its media and communications vertical also weakened by 3.8% YoY and marginally edged up by 0.5% QoQ.

Revenue for Q1FY25 grew by 9% YoY to Rs 926.5 crore from Rs 850.3 in Q1FY24. Sequentially, revenue rose by 2.3% from Rs 905.9 crore. In constant currency terms, revenue grew 8.4% YoY and 2.4% QoQ.

“Our transportation business reported a strong growth of 5.3% QoQ and 20.3% YoY in constant currency, and now accounts for more than 50% of our software development & services business. We believe we are positioned well to capture growth opportunities in the coming quarters as we continue to enable the continued transformation of the automotive industry and software defined vehicles,” said Manoj Raghavan CEO and MD of Tata Elxsi.

The total revenue share from Europe continued to increase to 42.2%, up from 40.3% in the previous quarter and 37.4% in the year-ago quarter. India and rest of the world share also steadily increased at 17.6% and 6.5% while Americas revenue share dipped to 33.7% from 36% in Q4 and 40.2% last year.

We step into the second quarter of this financial year with the confidence of a strong deal pipeline, continued growth in our transportation business and expansion of business with strategic customers across verticals, Raghavan added.Its operating margins declined to 24.3% both YoY and sequential basis from 27.1% and 25.8% in last year’s Q1 and Q4, respectively.

On employee front, Tata Elxsi’s lowered its headcount by 257 during the quarter with total employees at 13,142 at the end of June. From a year ago, the headcount increased by 856 from 12,286 in Q1FY24.

During the quarter, its attrition continued to improve to 12.3% from 12.4% in Q4FY24 and 15.6% last year.

The results were announced after market hours on Wednesday. Before that, Tata Elxsi’s shares closed at Rs 7118.80 per share, 1.4% higher from the previous close on the BSE.