Tata Elxsi falls 4% after drop in Q4 PAT, board recommends final dividend of ₹70 per share

Tata Elxsi on Tuesday reported an 8.1% year-over-year (y-o-y) rise in its fourth quarter operating revenue at ₹905.90 crore but witnessed a fall in net profit by 2.3% to ₹196.9 crore. On a sequential basis, net profit fell by 4.6%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.7% during the quarter to ₹261.20 crore. EBITDA margin fell to 28.8% compared to 29.8% in the same period a year ago.

For the full year 2024, revenue from operations increased 13% y-o-y to ₹3,552.1 crore while EBITDA rose 8.9% to ₹1,046.4 crore. EBITDA margin for the year fell to 29.5% as compared to 30.6% a year ago. Net profit rose 4.9% to ₹792.2 crore.

The board of directors has recommended a final dividend of ₹70 per share.

Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters.

“We had laid down a strategy of integrating our design business deeply with our key industry verticals, complementing our software and digital business with a design-led proposition. This is now complete, with a seamless end-to-end proposition from ideation to market introduction. This is enhancing our competitive differentiation, providing early visibility into customer product roadmaps, and creating larger downstream development deals,” he said.

The company pointed out that during FY24, its transportation business grew strongly at 24.6% y-o-y and now accounts for 49.9% of its overall Software and Design Services segment (SDS) revenues. Meanwhile, its transportation business grew at 24.6% y-o-y and now accounts for 49.9% of the overall SDS revenues. The healthcare and life sciences business registered a growth of 10.8%, it said.