Tata Elxsi Q2 FY25 Results: Net profit grows by one-fourth sequentially to Rs 229 crore; margin up by 70 bps

Tata Elxsi Q2 FY25 Results: Tata Elxsi, a Tata group company, on Thursday reported a net profit of Rs 229.4 crore for the quarter ended September 30, marking an increase of 24.6 per cent sequentially. Its quarterly revenue grew 4.2 per cent to Rs 965.1 crore, according to a regulatory filing. Tata Elxsi—traded with the symbol TATAELXSI on NSE and BSE—provides design and technology services to several industries including automotive, communications and healthcare.

The Tata group firm registered a quarterly EBITDA margin—a measure of operating profitability—of 27.9 per cent for the fiscal second quarter, translating to a quarter-on-quarter increase of 70 basis points (bps).

“We are happy to report a steady quarter... Our operational and offshore delivery excellence, fiscal discipline, and differentiated offerings have contributed to our EBITDA margins expanding by 70 basis points... with the superior bottom-line performance further aided by R&D incentives and tax credits from previous years," said Manoj Raghavan, CEO and Managing Director, Tata Elxsi. 

"Our strategic focus on expanding our business in Japan, emerging markets and capitalising on the India opportunity, is now starting to significantly contribute to our growth. During the quarter, our revenue from India has grown by 31.2 per cent YoY, while Japan and emerging markets grew smartly at 81.9 per cent YoY. Our transportation business continues to power growth for the company, registering a strong revenue growth of 8.8 per cent QoQ," said Raghavan. 

The company also said its healthcare and lifesciences unit logged a sequential decline of 10.4 per cent in topline, on account of a delay in the renewal and start of some new programs with its leading US-based customer.  

Earlier on Thursday, Tata Elxsi shares ended 2.0 per cent stronger at Rs 7,762.4 apiece on BSE.

Catch all the latest stock market updates here. For all other news stories in buzzing categories like technology, automobiles and personal finance, and much more, visit Zeebiz.com.