All-round growth

Tata Elxsi for the quarter ended Mar 2021 reported a revenue of Rs 518.40 crore, a growth of 9%QoQ. On constant currency basis all three businesses Embedded Product Design (EPD), Industrial Design & Visualisation (IDV) and System Integration & Support (SIS) has registered 8.5%QoQ, 40.2%QoQ and 21.3%QoQ respectively. With-in EPD, the core transportation registered a CC growth of 3.9%QoQ and the broadcast & communications was up by 5.8%. The healthcare sustained its sharp growth with 13.3%QoQ growth. On geographies front while the growth was led by America and India with both reporting 21.1% QoQ growth while Europe grew by 1.6% QoQ.

Higher sales together with 230 bps expansion in OPM to 32.4% (from 30.1% in Q3FY21, the operating profit was up by 17%QoQ to Rs 168.04 crore.

With other income stand lower by 55% to Rs 6.82 crore, the PBIDT was up by 10% to Rs 174.87 crore. Excluding exchange loss of Rs 3.9651 crore (against a gain of Rs 7.4462 crore in Q3FY21)the other income was up 41%QoQ to Rs 10.79 crore. After accounting for higher interest cost (up 41%QoQ to Rs 1.90 crore) and higher depreciation (up 2%QoQ to Rs 11.30 crore), the PBT was up by 11%QoQ to Rs 161.67 crore. Eventually the PAT was up by 9%qoq to Rs 115.17 crore as taxation stand higher by 13%QoQ to Rs 46.50 crore.

Quarterly performance YoY comparison

Sales was up by 18%yoy to Rs 518.40 crore. That together with 770 bps expansion in OPM to 32.4%, the operating profit jumped up 55% to Rs 168.04 crore.

The PBT was up by 47% to RS 161.67 crore after accounting for lower other income, higher interest and higher depreciation. Eventually the PAT was up by 40% to Rs 115.17 crore with taxation stand higher by 68%yoy to Rs 46.50 crore.

Yearly performance

Sales for the period was up by 13%yoy to Rs 1826.16 crore and with OPM expand by 730 bps to 28.6% (from 21.3% in FY20), the operating profit witnessed a jump of 52% to Rs 522.41 crore.

Sharp expansion in OPM is largely as the company account/charge Rs 21.63 crore of expense towards special retiral benefit payable to managing director made during Q2FY20 under the head employee benefit expenses.

The growth at PBT moderated to stand at 45% to Rs 511.87 crore hit by lower other income, higher interest and higher depreciation. The PAT was up by 44% to Rs 368.12 crore with taxation stand higher by 49% to Rs 143.74 crore in absolute terms.

Management comment

Manoj Raghavan, CEO and Managing Director of the company said, "It was a satisfying quarter with continued growth across offerings, industries and geographies. We continue to execute strongly on our growth aspirations with over 9% QoQ revenue growth in constant currency. Both Transportation and Media and Communications reported another steady quarter of sustained growth while our Healthcare business continues to grow faster. We have seen new customer additions and large deals in all three industry segments in the quarter. Our design business continues to grow strongly, with improved deal flow and revenues from new deals as well as cross-selling into existing customers for upstream and design-led work. On the whole, it has been an all-round performance by the team in an extraordinary year and environment that posed huge challenges to maintaining business continuity and customer centricity, while ensuring the safety and wellbeing of our employees across the world. I am delighted to exit FY21 with all-round growth in revenues, margins and customer additions. We are entering a new financial year with the continued confidence of our customers in our differentiated capabilities in technology, design and digital, and a strong position in our chosen verticals."

To pay a final dividend and special dividend @240% each

The company to pay a Final Dividend of 240 % at Rs. 24 per share (of Rs 10 face value each) for the year 2020-21 (subject to tax) and One-time Special Dividend of 240 % at Rs. 24 per share (subject to tax). The same was approved by BoD at their meeting on April 22, 2021 and subject to approval of members at the forthcoming AGM.