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Tata Elxsi is a design company that blends technology, creativity and engineering to help customers transform ideas into world-class products and solutions.
Tata Elxsi addresses the communications, consumer products, defence, healthcare, media & entertainment, semiconductor and transportation sectors. This is supported by a talent pool of over 4000 employees and a network of design studios, development centers and offices worldwide. Key services include embedded product design, industrial design, animation & visual effects and systems integration.
Headquartered in Bangalore, India, its global network of offices includes Dubai, France, Germany, Japan, Malaysia, Singapore, South Africa, UAE, UK, and USA.
q-o-q results
On sequential basis, Tata Elxsi registered 11% fall in sales to Rs 361.70 crore for the quarter ended June 2019. OPM fell 500 basis points to 19.3% which saw OP go down 29% to Rs 69.85 crore.
Other income fell 189% to Rs 12.11 crore.
Other income includes forex loss of Rs 1.11 crore against froex gains of Rs 60.60 lakh.
As depreciation grew 56% to Rs 10.45 crore, PBT grew fell 34% to Rs 70.19 crore. Provision for tax fell 40% to Rs 21.40 crore, after which PAT went down 32% to Rs 48.79 crore.
y-o- y results
On y-o-y basis, sales were down 5% and OPM fell 860 basis points. OP was down 34%. PBT fell 35% and PAT went down 31%.
FY 2019 results
In FY 2019, Tata Elxsi registered 15% rise in sales to Rs 1596.93 crore. OPM improved 100 basis points to 26.0% which saw OP grow 20% to Rs 415.03 crore.
Other income stood at Rs 43.46 crore against Rs 43.25 crore. Other income includes forex gain of Rs 3.49 crore against Rs 14.54 crore.
As depreciation fell 1% to Rs 25.10 crore, PBT grew 19% to Rs 433.40 crore. Provision for tax grew 16% to Rs 143.43 crore, after which PAT went up 21% to Rs 289.97 crore.
Other information
JLR accounted for 22% sales qoq which fell to 15% in June 2019 quarter and fell 25% yoy.
Transport business unit accounted for 60% of sales qoq which fell to 15% in June 2019 quarter.
Effective April 1,2019, the company adopted Ind. AS '116' "Leases", applied to its leases contracts existing on April 1,2019 using the modified retrospective method and has taken the cumulative adiustment to retained earnings, on the date of initial application Accordingly, the company has not restated comparative information. The adoption of the standard has resulted in recognition of Right-of-Use asset of Rs 52.85 crore and net lease liability of Rs 57.77 crore on transition.
The cumulative effect application of the standard has effected the debit to retained earnings of Rs 3.19 crore, net of taxes
In the profit and loss account for the current period, the nature of expenses in respect of operating leases has changed from lease rent in previous periods to depreciation cost for the right to use asset and finance cost for interest accrued on lease liability.
Valuation
The scrip trades around Rs 742
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