Tata Elxsi reported 12.67% growth in Dec-20 quarter top line revenues yoy at Rs477.10cr. The robust growth in top-line was largely led by design-led technology services, the core business competence of Tata Elxsi.
For the Dec-20 quarter, the operating profits were sharply up 59.75% at Rs132.56cr. This was on the back of a sharp fall in other expenses, which more than compensated for the higher manpower costs in the quarter. As a result, the operating margin or OPM expanded marginally sharply from 19.60% in the Dec-19 quarter to 27.78% in Dec-20 quarter.
Profit after tax (PAT) for the Dec-20 quarter was up 39.5% at Rs105.20cr on the back of higher top line revenues. This resulted in the PAT margins for the Dec-20 quarter expanding from 17.81% in Dec-19 quarter to 22.05% in the Dec-20 quarter.
Financial highlights for Dec-20 compared yoy and sequentially
|Rs in Crore||Dec-20||Dec-19||YOY||Sep-20||QOQ|
|Total Income (Rs cr)||₹ 477.10||₹ 423.44||12.67%||₹ 430.18||10.91%|
|Operating Profit (Rs cr)||₹ 132.56||₹ 82.98||59.75%||₹ 106.84||24.07%|
|Net Profit (Rs cr)||₹ 105.20||₹ 75.42||39.49%||₹ 78.88||33.37%|
|Diluted EPS (Rs)||₹ 16.89||₹ 12.11||₹ 12.67|
Key takeaways from the Dec-20 quarter results
The PAT of Rs.105.20 crore achieved in the Dec-20 quarter was the highest ever quarterly profit achieved by Tata Elxsi. During the quarter, Tata Elxsi saw extremely low attrition rates of 6.1%, extremely attractive for an IT company.
In terms of product design, the embedded product design business grew by 14.5% on a yoy basis while the industrial design and visualization business grew by 7.1% yoy. Both the business lines also saw positive growth on sequential basis.
In terms of the industry segments that generated demand for Tata Elxsi, transportation, media and communication saw sequential growth of 8% while healthcare saw 24% sequential growth in demand.