Tata Elxsi, a leading design-focused engineering services company, delivered consistent performance in the financial year 2023-24 (FY24). Despite global uncertainties, the company achieved a 13% year-on-year (YoY) growth in revenue, reaching Rs. 3,552.1 Crore.
Key Highlights:
- Revenue of Rs. 3,552.1 Cr, up 13.0% YoY
- Industry-leading EBITDA margin of 29.5%
- Profit Before Tax (PBT) grew 11.9% to Rs. 1048.7 Cr
- Software Development and Services (SDS) segment grew 9.3% YoY (constant currency)
- System Integration & Support (SIS) segment grew 18.6% YoY (constant currency)
- Strong growth in Transportation segment (24.6% YoY) driven by Electric Vehicles and OEMs
- Continued growth in Healthcare & Lifesciences segment (10.8% YoY)
- Dividend of Rs. 70 per share (700%) recommended, subject to shareholder approval
Focus on Design-Led Engineering
Tata Elxsi emphasized its commitment to design-led engineering solutions. The company integrated its design business with core industry verticals, creating a seamless offering from ideation to product launch. This strategy is enhancing their competitive edge and attracting larger development deals.
Sectoral Performance
The Transportation segment emerged as the star performer with a 24.6% YoY growth, now accounting for nearly half of the company’s SDS revenue. The Healthcare & Lifesciences segment also witnessed steady growth with a focus on digital therapeutics and connected health. While the Media & Communications segment faced challenges, the company protected its business and expanded its customer base.
Looking Ahead
Tata Elxsi expressed confidence for the upcoming financial year. The company boasts a strong deal pipeline, strategic customer relationships, and investments in new technologies like AI. Additionally, the appointment of two new board members with extensive experience is expected to further strengthen the company’s position.
