Results     19-May-23
Analysis
Tata Elxsi
Revenue up 22.9% YoY, Net Profit up 25.9% YoY in Q4FY2023
On standalone basis

Quarter ended March 2023 compared with Quarter ended December 2022.


Net sales (including other operating income) of Tata Elxsi has increased 2.47% to Rs 837.92 crore.  

Operating profit margin has declined from 32.45% to 29.80%, leading to 1.16% rise in operating profit to Rs 249.73 crore.  Purchase of finished goods cost rose from 6.14% to 6.58%.   Employee cost increased from 50.16% to 51.27%.   Other expenses fell from 13.56% to 12.32%.   

Other income up 34.29% to Rs 25.69 crore.  PBIDT rose 3.54% to Rs 275.42 crore.  Provision for interest fell 7.83% to Rs 4.12 crore.  Loan funds remained nil.  

PBIDT rose 3.54% to Rs 275.42 crore.  Provision for depreciation down 1.63% to Rs 21.08 crore.  

Profit before tax grew 4.21% to Rs 250.22 crore.  Provision for tax was expense of Rs 48.7 crore, compared to Rs 45.42 crore.  Effective tax rate was 19.46% compared to 18.92%.

Profit after tax rose 3.51% to Rs 201.52 crore.  

Promoters’ stake was 43.92% as of 31 March 2023 ,compared to 43.92% as of 31 December 2022 .  

Quarter ended March 2023 compared with Quarter ended March 2022.


Net sales (including other operating income) of Tata Elxsi has increased 22.91% to Rs 837.92 crore.  Sales of System Integration & Support Serv segment has gone up 94.73% to Rs 22.75 crore (accounting for 2.72% of total sales).  Sales of Software Development & Services segment has gone up 21.66% to Rs 815.17 crore (accounting for 97.28% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 10.56% to Rs 275.32 crore.  PBIT of System Integration & Support Serv segment rose 406.12% to Rs 0.56 crore (accounting for 0.20% of total PBIT).  PBIT of Software Development & Services segment rose 10.38% to Rs 274.75 crore (accounting for 99.80% of total PBIT).  

PBIT margin of System Integration & Support Serv segment rose from 0.95% to 2.47%.  PBIT margin of Software Development & Services segment fell from 37.15% to 33.71%.  Overall PBIT margin fell from 36.53% to 32.86%.  

Operating profit margin has declined from 32.45% to 29.80%, leading to 12.88% rise in operating profit to Rs 249.73 crore.  Purchase of finished goods cost rose from 5.05% to 6.58%.   Employee cost increased from 50.53% to 51.27%.   Other expenses rose from 12.00% to 12.32%.   

Other income up 42.01% to Rs 25.69 crore.  PBIDT rose 15.08% to Rs 275.42 crore.  Provision for interest up 29.15% to Rs 4.12 crore.  Loan funds rose to Rs 182.26 crore as of 31 March 2023 from Rs 138.50 crore as of 31 March 2022.  Inventories declined from Rs 0.57 crore as of 31 March 2022 to Rs 0.39 crore as of 31 March 2023.  Sundry debtors were higher at Rs 976.38 crore as of 31 March 2023 compared to Rs 672.79 crore as of 31 March 2022.  Cash and bank balance rose to Rs 1,191.55 crore as of 31 March 2023 from Rs 965.21 crore as of 31 March 2022.  

PBDT rose 14.89% to Rs 271.3 crore.  Provision for depreciation rose 32.75% to Rs 21.08 crore.  Fixed assets increased to Rs 324.37 crore as of 31 March 2023 from Rs 273.25 crore as of 31 March 2022.  Intangible assets declined from Rs 20.35 crore to Rs 16.20 crore.  

Profit before tax grew 13.60% to Rs 250.22 crore.  Provision for tax was expense of Rs 48.7 crore, compared to Rs 60.25 crore.  Effective tax rate was 19.46% compared to 27.35%.

Profit after tax rose 25.94% to Rs 201.52 crore.  

Equity capital stood at Rs 62.28 crore as of 31 March 2023 to Rs 62.28 crore as of 31 March 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 43.92% as of 31 March 2023 ,compared to 44.08% as of 31 March 2022 .  

Full year results analysis


Net sales (including other operating income) of Tata Elxsi has increased 27.28% to Rs 3,144.72 crore.  Sales of System Integration & Support Serv segment has gone up 59.18% to Rs 78.78 crore (accounting for 2.50% of total sales).  Sales of Software Development & Services segment has gone up 26.62% to Rs 3,065.95 crore (accounting for 97.50% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 28.75% to Rs 1,070.51 crore.  PBIT of System Integration & Support Serv segment rose 53.06% to Rs 3.81 crore (accounting for 0.36% of total PBIT).  PBIT of Software Development & Services segment rose 28.68% to Rs 1,066.70 crore (accounting for 99.64% of total PBIT).  

PBIT margin of System Integration & Support Serv segment fell from 5.03% to 4.84%.  PBIT margin of Software Development & Services segment rose from 34.24% to 34.79%.  Overall PBIT margin rose from 33.65% to 34.04%.  

Operating profit margin has declined from 30.99% to 30.57%, leading to 25.54% rise in operating profit to Rs 961.28 crore.  Purchase of finished goods cost rose from 5.13% to 5.92%.   Employee cost decreased from 52.12% to 50.81%.   Other expenses rose from 11.77% to 12.70%.   

Other income up 65.75% to Rs 73.81 crore.  PBIDT rose 27.75% to Rs 1035.09 crore.  Provision for interest up 71.79% to Rs 16.2 crore.  Loan funds rose to Rs 182.26 crore as of 31 March 2023 from Rs 138.50 crore as of 31 March 2022.  Inventories declined from Rs 0.57 crore as of 31 March 2022 to Rs 0.39 crore as of 31 March 2023.  Sundry debtors were higher at Rs 976.38 crore as of 31 March 2023 compared to Rs 672.79 crore as of 31 March 2022.  Cash and bank balance rose to Rs 1,191.55 crore as of 31 March 2023 from Rs 965.21 crore as of 31 March 2022.  

PBDT rose 27.23% to Rs 1018.89 crore.  Provision for depreciation rose 47.07% to Rs 81.39 crore.  Fixed assets increased to Rs 324.37 crore as of 31 March 2023 from Rs 273.25 crore as of 31 March 2022.  Intangible assets declined from Rs 20.35 crore to Rs 16.20 crore.  

Profit before tax grew 25.76% to Rs 937.50 crore.  Provision for tax was expense of Rs 182.31 crore, compared to Rs 195.82 crore.  Effective tax rate was 19.45% compared to 26.27%.

Profit after tax rose 37.39% to Rs 755.19 crore.  

Equity capital stood at Rs 62.28 crore as of 31 March 2023 to Rs 62.28 crore as of 31 March 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 43.92% as of 31 March 2023 ,compared to 44.08% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 486.86 crore for year ended March 2023 from Rs 483.03 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 64.10 crore, compared to Rs 71.19 crore during the year ended March 2022.  

 

Dividend:

The Board of Directors at their meeting held on 18th May 2023, has recommended a final dividend of 606% at Rs. 60.60 per share for the financial year 2022-23.

Management Commentary:

Commenting on the performance, Mr Manoj Raghavan said “Financial year 2023 has been another year of strong operational performance, driving healthy revenue growth and strong margins despite the macroeconomic uncertainties and challenges that the industry has been facing since last few quarters. In a matter of just two financial years, our top line has grown by 72% to Rs. 3144.7 Cr and our PAT has almost doubled to Rs. 755.2 Cr.

During the financial year, our transportation business, which accounts for more than 43% of our Embedded Product Design (EPD) division, grew strongly by 32.8% in constant currency terms. The Healthcare & Medical Devices business too registered a robust growth of 28.4% in constant currency terms. Our Media & Communications business witnessed a stable and sustained growth of 14.6% in constant currency terms during the financial year.

The key strategies deployed over the last two years have played out well with strong synergies between the design, product engineering and deployment support services of Tata Elxsi. This is enhancing deal sizes, durations and value delivered to customers. This is reflected in the strong Q4’23 growth from IDV (52.8% YoY in constant currency terms) and SIS (77.6% YoY in constant currency terms).

We are entering the new financial year with a strong commitment to keep our growth momentum going, and the continued confidence of our customers in our differentiated design-led engineering capabilities.”

Tata Elxsi : Standalone Results
Quarter endedYear ended
Particulars202303202203Var.(%)202303202203Var.(%)
Net Sales (including other operating income)837.92681.7422.913,144.722,470.8027.28
OPM (%)29.8032.45-265 bps30.5730.99-42 bps
OP249.73221.2412.88961.28765.7325.54
Other Inc.25.6918.0942.0173.8144.5365.75
PBIDT275.42239.3315.081,035.09810.2627.75
Interest4.123.1929.1516.29.4371.79
PBDT271.30236.1414.891,018.89800.8327.23
Depreciation21.0815.8832.7581.3955.3447.07
PBT250.22220.2613.60937.5745.4925.76
PBT before EO250.22220.2613.60937.5745.4925.76
EO Income00-00-
PBT after EO250.22220.2613.60937.5745.4925.76
Taxation48.760.25-19.17182.31195.82-6.90
PAT201.52160.0125.94755.19549.6737.39
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations201.52160.0125.94755.19549.6737.39
EPS (Rs)*32.3625.6925.94121.2688.2637.39
* EPS is on current equity of Rs 62.28 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Tata Elxsi : Standalone Segment Results
 Quarter endedYear ended
% of (Total)202303202203Var.(%)% of (Total)202303202203Var.(%)
Sales
System Integration & Support Serv2.7222.7511.6894.732.5078.7849.4959.18
Software Development & Services97.28815.17670.0621.6697.503,065.952,421.3126.62
Total Reported Sales100.00837.92681.7422.91100.003,144.722,470.8027.28
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.00837.92681.7422.91100.003,144.722,470.8027.28
PBIT
System Integration & Support Serv0.200.560.11406.120.363.812.4953.06
Software Development & Services99.80274.75248.9210.3899.641,066.70828.9528.68
Total PBIT100.00275.32249.0310.56100.001,070.51831.4428.75
Less : Interest4.123.1929.2116.209.4371.87
Add: Other un-allcoable-20.98-25.5817.96-116.81-76.52-52.65
PBIT Margin(%)
System Integration & Support Serv 2.470.95152.20 4.845.03-19.36
Software Development & Services 33.7137.15-344.38 34.7934.2455.64
PBT100.00250.22220.2613.60100.00937.50745.4925.76


Peer Comparision (Standalone) Q-202303
Sales
(Rs. Crs)
var.(%) OP
(Rs. Crs)
var.(%) Net Profit
(Rs. Crs)
var.(%) Share Price(Rs)
18-May-2023
var.(%)
over
One year
TTM EPS TTM PE
Tata Elxsi Ltd 837.92 22.91 249.73 12.88 201.52 25.94 7,001.85 -16.99 121.27 57.74
3i Infotech Ltd 75.40 39.6 -18.63 PL -20.70 PL 31.96 -36.84 2.24 14.26
7Seas Entertainment Ltd 1.08 227.27 0.07 LP 0.08 -68 24.85 21.52 0.36 69.65
AAA Technologies Ltd 11.99 64.92 1.01 -32.67 0.80 -29.82 62.48 0.00 1.98 31.55
Accelya Solutions India Ltd 103.88 24.87 65.53 101.63 27.56 40.04 1,279.05 31.20 72.02 17.76
ACI Infocom Ltd 0.00 - 0.06 LP 0.02 LP 0.83 -61.21 0.01 83.36
Affle India Ltd 136.50 25.88 22.02 71.9 20.31 52.25 911.75 -17.89 5.02 181.63
Alankit Ltd 47.16 99.16 10.77 741.41 6.23 402.42 9.26 -28.88 0.68 13.56
Allsec Technologies Ltd 76.92 28.95 14.39 7.47 5.59 -38.84 452.90 -7.06 30.39 14.90
Alphalogic Techsys Ltd 1.29 37.23 0.68 44.68 0.53 8.16 39.45 64.38 0.54 73.35
Aurionpro Solutions Ltd 134.04 57.23 24.14 82.19 14.49 91.67 593.50 73.61 16.93 35.06
Aurum Proptech Ltd 3.19 250.55 -3.63 13.16 -3.99 -33 113.90 24.89 -3.91 -
B2B Software Technologies Ltd 3.94 12.57 0.82 24.24 1.02 75.86 27.50 -20.17 2.00 13.74
Birlasoft Ltd 624.44 12.04 58.09 -42.91 26.06 -66.62 318.90 -18.08 7.28 43.80
BLS International Services Ltd 25.20 68.11 1.18 -50.42 11.04 -12.31 176.95 86.50 1.00 176.23
BNR Udyog Ltd 1.08 25.58 0.30 3.45 0.03 -84.21 44.80 57.47 3.60 12.44
C.E. Info Systems Ltd 65.65 18.65 26.59 4.85 27.64 17.17 1,066.20 -17.40 20.27 52.60
Cigniti Technologies Ltd 187.69 50.45 41.45 201.67 28.97 215.58 813.90 98.32 36.27 22.44
Coforge Ltd 1,126.70 27.41 -10.40 PL 289.89 60.78 4,205.40 6.41 127.86 32.89
COSYN Ltd 3.65 107.39 0.25 LP 0.01 -99.28 25.91 39.68 0.40 64.77
Cybertech Systems & Software Ltd 37.58 89.13 5.35 73.7 3.40 44.07 122.55 -17.83 5.58 21.95
Cyient Ltd 597.20 25.25 155.10 19.12 111.90 -61.06 1,288.70 64.27 32.09 40.16
Datamatics Global Services Ltd 212.82 40.22 42.13 61.73 31.87 53.89 470.10 39.87 17.49 26.87
Dev Information Technology Ltd 41.89 31.94 3.25 85.71 2.41 217.11 111.00 22.45 3.95 28.12
eMudhra Ltd 46.64 13.59 8.10 -55.35 4.11 -63.53 386.20 49.20 2.56 150.98
Excel Realty N Infra Ltd 0.74 -86.25 -2.72 21.61 -2.06 -106 0.39 -7.14 0.00 166.73
Fidel Softech Ltd 9.29 13.71 1.71 -42.62 1.55 -13.41 72.85 17.41 3.92 18.58
Firstsource Solutions Ltd 341.45 -4.53 91.97 -16.44 59.36 -26.27 133.25 15.87 3.54 37.64
Fourth Dimension Solutions Ltd 9.85 1287.32 1.50 LP 1.37 -94.2 23.85 445.77 0.28 86.32
GI Engineering Solutions Ltd 375.58 1.25183e+006 -0.04 -300 1.43 LP 37.58 899.47 0.33 112.38
Happiest Minds Technologies Ltd 342.33 19.35 80.43 -5.79 51.26 -10.88 876.80 -7.17 14.73 59.51
InfoBeans Technologies Ltd 59.92 24.6 9.48 2.16 7.82 12.03 464.00 -12.96 15.20 30.54
Inspirisys Solutions Ltd 97.08 30.82 12.76 131.58 9.24 90.52 54.00 -7.61 4.53 11.92
Intellect Design Arena Ltd 411.45 17.77 75.88 -5.04 39.94 -22.81 550.35 -14.94 9.87 55.77
KPIT Technologies Ltd 424.13 27.78 119.18 56.63 74.21 -13.94 941.10 82.14 10.22 92.09
Ksolves India Ltd 22.46 65.27 9.03 55.96 7.18 65.06 796.15 88.28 20.97 37.97
L&T Technology Services Ltd 1,878.20 21.32 419.90 21.75 292.00 20.71 3,844.90 1.90 105.13 36.57
Latent View Analytics Ltd 69.60 4.33 25.91 -20.69 29.71 2.27 324.85 -22.67 5.72 56.78
Mastek Ltd 88.88 29.79 55.72 LP 36.22 42.21 1,781.55 -30.66 25.71 69.29
Megri Soft Ltd 0.55 5.77 0.19 35.71 0.13 -7.14 105.45 -10.64 1.56 67.59
Mphasis Ltd 2,411.78 17 536.57 31.02 375.92 20.55 1,859.05 -29.67 75.04 24.78
Nazara Technologies Ltd 6.20 77.14 -15.90 21.29 -12.00 35.83 580.85 -6.52 -3.61 -
Netlink Solutions (India) Ltd 1.37 2183.33 0.73 LP 2.77 LP 99.36 84.00 18.90 5.26
Newgen Software Technologies Ltd 283.44 34.61 91.46 43.67 76.38 36.05 584.10 47.71 24.28 24.06
Odyssey Technologies Ltd 7.92 55.6 3.58 171.21 2.75 418.87 73.96 39.55 2.77 26.70
Onward Technologies Ltd 88.02 32.28 12.19 80.33 8.71 123.33 391.95 31.86 7.29 53.77
Oracle Financial Services Software Ltd 1,112.30 16.06 572.60 16.05 543.06 0.56 3,508.65 8.81 204.95 17.12
Persistent Systems Ltd 1,483.48 43.33 376.43 52.09 258.40 32.86 4,749.95 23.09 106.45 44.62
Quest Softech India Ltd 0.03 -66.67 -0.27 PL -0.28 PL 68.97 383.66 -0.36 -
Quick Heal Technologies Ltd 49.29 -52.49 -15.98 PL -6.55 PL 139.25 -22.55 1.43 97.24
R S Software (India) Ltd 12.25 182.91 3.70 LP 2.64 LP 35.04 12.85 -1.58 -
R Systems International Ltd 224.71 27.06 44.50 48.88 32.71 51.79 252.35 9.72 10.47 24.10
Ram Info Ltd 20.57 -10.6 0.07 -97.59 0.52 -72.49 97.70 -15.45 9.21 10.61
Ramco Systems Ltd 63.03 -11.76 -14.91 -548.26 -24.48 -57.43 217.40 -18.41 -32.07 -
Sasken Technologies Ltd 86.49 -8.39 11.30 -54.84 34.09 32.49 836.70 0.83 65.21 12.83
Sonata Software Ltd 231.98 19.35 3.04 -90.88 35.00 10.65 924.85 84.51 15.72 58.85
Subex Ltd 49.48 203.56 -47.62 -651.1 -53.20 -689.32 27.56 -15.72 -1.22 -
Tanla Platforms Ltd 255.10 -29.43 19.97 -45.24 16.39 -43.4 733.60 -41.64 12.93 56.75
Titan Intech Ltd 7.29 107.69 1.39 16.81 0.52 -32.47 52.06 56.57 3.40 15.33
Tracxn Technologies Ltd 20.34 18.6 0.70 LP 24.50 7556.25 66.20 -29.08 2.85 23.22
Varanium Cloud Ltd 150.33 1028.6 44.33 LP 29.49 LP 194.65 505.63 15.28 12.74
Virinchi Ltd 32.63 -3.94 6.29 10.74 2.96 -8.92 32.66 -7.35 1.48 22.10
We Win Ltd 13.60 1.70 0.87 42.50 -4.28 2.36 17.19
Zen Technologies Ltd 74.14 364.25 26.30 LP 17.27 946.67 337.70 96.79 4.56 74.11
Zensar Technologies Ltd 477.00 7.17 113.60 -1.47 151.80 43.34 349.05 15.26 13.62 25.62
Industry 15,698.13 25.14 3,375.02 17.66 2,920.39 5.24 3,54,818.46 -22.23 15.03
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 ( Results - Announcements 19-May-23   07:25 )
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