News

Published: May 19, 2023
Updated: May 19, 2023

"Tata Elxsi Reports Impressive Q4FY23 Results with 26% Rise in Net Profit, Declares Dividend"

Tata Elxsi Ltd has announced its financial results for the fourth quarter of FY23, showcasing a remarkable 26% year-on-year increase in net profit, reaching ₹201.5 crore. The company's strong performance highlights its consistent growth and market resilience. Additionally, Tata Elxsi has declared a dividend, further bolstering investor confidence. This article provides a detailed breakdown of the company's financials and key highlights.

Significant Rise in Net Profit:

Tata Elxsi Ltd has reported a notable 26% YoY rise in net profit for Q4FY23, amounting to ₹201.5 crore. This impressive growth demonstrates the company's ability to generate substantial profits and deliver consistent shareholder value.

Revenue Growth and Financial Performance:

The company's revenue from operations during Q4FY23 has increased by 23% YoY, reaching ₹838 crore compared to ₹681.7 crore in the previous year. Sequentially, there is a 2.5% growth from ₹817.7 crore. The overall total income for Q4FY23 has also risen by 23.4% YoY, amounting to ₹863.6 crore. These figures reflect Tata Elxsi's strong business performance and revenue generation capabilities.

EBITDA Margin and Profitability:

Tata Elxsi's Q4FY23 EBITDA margin stands at 29.8%, slightly lower than the previous year's 32.5% on a YoY basis. The company's EBITDA for the quarter has reached ₹249.5 crore, representing a growth of 12.8% YoY compared to ₹221.2 crore in the corresponding period of the previous year. These figures demonstrate Tata Elxsi's ability to maintain a healthy profitability margin while navigating market challenges.

Dividend Declaration:

The board of directors has recommended a final dividend of 606% at ₹60.60 per share for the financial year 2022-23. This decision reflects the company's commitment to rewarding its shareholders and signifies confidence in its financial strength and future prospects.

Segment-wise Performance:

Tata Elxsi's CEO and managing director, Manoj Raghavan, highlights the exceptional growth in the transportation business, which constitutes over 43% of the Embedded Product Design (EPD) segment. The transportation business has experienced a remarkable 32.8% growth in constant currency terms. Additionally, the Healthcare & Medical Devices segment has seen significant growth of 28.4% in constant currency terms. The Media & Communications business has also achieved a constant currency growth of 14.6% throughout the financial year.

Tata Elxsi's Q4FY23 results showcase a robust financial performance, with a 26% YoY rise in net profit and impressive revenue growth. The company's ability to maintain healthy margins and declare a substantial dividend reflects its strong operational capabilities and commitment to shareholder value. Tata Elxsi remains confident in its design-led engineering capabilities and is poised to sustain its growth momentum in the new financial year. These results reaffirm Tata Elxsi's position as a leading player in the industry, capable of navigating macroeconomic uncertainties and delivering consistent growth.