EBITDA in Q1 FY23 slipped 4.9% QoQ whereas rose 23.4% YoY to Rs 226.5 crore. EBITDA margin slid to 29.7% in Q2 FY23 as against 32.8% in Q1 FY23 and 30.8% posted in Q2 FY22.

The company's growth was primarily volume led, with all three segments of Embedded Product Design (EPD), Industrial Design and Visualization (IDV) and SIS showing robust growth of 3.8%, 13.5% and 26.2% QoQ respectively.

The company's total headcount at the end of the Septmeber 2022 stood at 11,679 employees with 1,532 net additions in the quarter. The company's attrition rate stood at 18.7% in Q2 FY23 as compared to 19% in Q1 FY23 and 13.9% in Q2 FY22.

Transportation grew 3.8% QoQ and 30.4% YoY, aided by large deals in EV, ADAS and adjacencies in rail and offroad vehicles. Healthcare continued to witness strong growth of 8.2% QoQ and 55.9% YoY, driven by new product engineering and regulatory services.

Media and Communications reported growth at 2.1% QoQ and 22.2% YoY, aided by platform-led deals and entry into new operator accounts.

Manoj Raghavan, CEO and managing director of Tata Elxsi said, “We have delivered a quarter of steady growth amidst macro-economic uncertainty and currency headwinds in our key markets. We are gaining market share in both Automotive and Media & Communications, especially in Europe. The numbers are muted in the region due to unfavorable currency movement.

We won multi-year deals in EV and autonomous driving systems in the automotive space, and large deals in the off-road and rail segments. We have won strategic platform-led deals in media and communications, with new SaaS and managed services models.

For us, this has been a quarter of investing strongly in growth for the future. With a net add of 1532, we have added the highest number of Elxsians in our history in a single quarter, while the attrition rate declined for the second consecutive quarter.

We are entering the second half of the financial year with a strong order book and a healthy deal pipeline across key markets and industries, and the confidence of customers across markets. Importantly, we have invested in capacity and capability building for engineering talent, leadership and technology that will drive our next phase of growth.”

Tata Elxsi is amongst the world's leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.

The scrip declined 8.10% to currently trade at Rs 7,770.55 on the BSE.