Tata Elxsi Q3 earnings today; a quick summary of how Tata Group firm fared in Q2 FY25

For the second quarter of the financial year 2024-25 (Q2 FY25), the Tata Group company reported ₹955.1 crore of operating revenue, registering a growth of 3.1% QoQ.

Highlights of the Quarter Ended 30th September 2024:

• Revenues from operations at ₹955.1 Cr, + 3.1% QoQ

• Operating (EBITDA) margin at 27.9%; +70 bps QoQ

• Profit Before Tax (PBT) at ₹298.7 Cr, +18.3% QoQ

• Profit After Tax (PAT) at ₹229.4 Cr, +24.6% QoQ

• Transportation grew strongly at 8.8% QoQ, aided by large deals and growth in SDV and OEM business.

SDV stands for software-defined vehicle.

Our operational and offshore delivery excellence, fiscal discipline, and differentiated offerings have contributed to our EBITDA margins expanding by 70 basis points to 27.9% for the quarter. Our PAT grew by 24.6% QoQ to 229.4 Cr, with the superior bottom-line performance further aided by R&D incentives and tax credits from previous years."

Raghavan further said that their strategic focus on expanding their business in Japan and emerging markets and capitalising on the India opportunity was starting to significantly contribute to the company's growth.

"During the quarter, our revenue from India has grown by 31.2% YoY, while Japan and emerging markets grew smartly at 81.9% YoY," the CEO added.

The company's Media & Communication business declined marginally by 1% QoQ.

"Our Healthcare & Lifesciences business reported a decline in topline by 10.4% QoQ. This is due to a delay in the renewal and start of some new programs with our leading US-based customer," the company said.

Tata Elxsi stock performance

Shares of Tata Elxsi have slipped 25% in the past year.