Declares 700% dividend (Rs. 70 per
share)
Full year PBT crosses Rs. 1,000 Cr for the
first time
Growth led by Transportation at 24.6% year on
year
BANGALORE, India, April 23,
2024 /PRNewswire/ -- Tata Elxsi (BSE: 500408 | NSE:
TATAELXSI), amongst the world's leading providers of design led
technology services, announced its fourth quarter results for the
period ending 31st March
2024.
Highlights of the Year Ended 31st March 2024
- Revenues from operations at Rs. 3,552.1 Cr, + 13.0%
YoY
- EBITDA Margin at 29.5%, PBT margin at 28.5%
- Profit before Tax (PBT) grows 11.9% to Rs. 1048.7 Cr
- Software Development and Services (SDS) grew by 9.3% YoY, in
constant currency.
- System Integration & Support (SIS) grew by 18.6% YoY,
in constant currency.
Highlights of the Quarter Ended March
31, 2024:
- Revenues from operations at Rs. 905.9 Cr, - 0.9% QoQ, +
8.1% YoY
- Operating revenue growth -0.6% QoQ and +7.2% YoY on
constant currency basis
- EBITDA Margin at 28.8%; PBT at 27.9%
- Profit Before Tax (PBT) at Rs. 262.4 Cr, +4.9% YoY
Industry Highlights for the Year Ended March 31, 2024:
- Transportation continues to grow strongly, registering a
revenue growth of 24.6% YoY, supported by deal wins in
Electric, Software Defined Vehicles and OEMs
- Healthcare delivered sustained growth of 10.8% YoY
- Media and Communications grew 0.2% YoY in a challenging
business environment for this industry
Dividend related announcement:
The Board of Directors have recommended a final dividend of 700%
(Rs. 70 per equity share of par value of Rs. 10 each) for the
financial year ending 31st March
2024, subject to approval by the shareholders of the company
at the Annual General Meeting.
Mr. Manoj Raghavan, CEO and
Managing Director, Tata Elxsi,
commenting on the company's performance in the financial year
2023-24, said:
"Financial year 2024 has been a year of consistent operational
performance with a revenue growth of 13% despite global
macroeconomic uncertainties, and volatility in the media and
communications industry over the last few quarters. We have done
well to maintain industry leading EBITDA margin at 29.5% for the
year, even while we continued to invest in expanding our talent
base through all four quarters, with a net addition of 1535
Elxsians through the year.
We had laid down a strategy of integrating our design business
deeply with our key industry verticals, complementing our software
and digital business with a design-led proposition. This is now
complete, with a seamless end-to-end proposition from
ideation to market introduction. This is enhancing our competitive
differentiation, providing early visibility into customer product
roadmaps, and creating larger downstream development deals.
Starting with this quarter, we are reporting this integrated
view of design-digital in all three verticals, under the Software
and Design Services segment (SDS).
During the financial year, our transportation business grew
strongly at 24.6% YoY, and now accounts for 49.9% of our overall
SDS revenues. OEMs now constitute over 56% of the transportation
business, and we are now embedded into the SDV programs of 5 global
OEMs. I am especially delighted with the SDV program with a global
OEM we won this quarter, and the German Design Award 2024 for our
work on automotive HMI, which demonstrates the world-class
design-led proposition we offer to customers.
The Healthcare & Lifesciences business registered a growth
of 10.8% YoY. We have established a strong foundation for continued
growth, with the addition of 5 marquee customer logos in the year
and expanded capabilities and platforms in new growth areas such as
digital therapeutics and connected health. The Offshore Development
Centre for innovation and R&D we announced in March 2024 for Dräger Medical, the German
headquartered leader in critical care and safety equipment,
demonstrates the relevance of our technology and design expertise
and deep domain capabilities for next-generation healthcare.
Our Media & Communications business grew 0.2% during the
financial year. While this quarter saw a one-off impact of a deal
ramp-down with a customer due to a merger, we have done well
through the year to protect business, add marquee customers and
increase wallet share with key customers. Even while the industry
continues to experience significant reductions in discretionary
spend and R&D budgets, we are placed well with our integrated
design-digital offerings and investments in platforms for the
future.
Our Systems Integration and Support (SIS) Business is pivoting
to value-added services, innovation-led projects such as experience
centres, and supporting downstream deployment and run management
for our products and platforms. While Q4 revenues and growth was
impacted by hardware shipment delays due to the Red Sea shipping
crisis, it grew creditably by 19.0% in FY24, getting to a near
100 Crores business in this financial
year.
We are transforming our customer base across industries, with a
significant shift towards OEMs in the automotive industry, and
operators in the media and telecom industry, while we continue to
invest in deepening our key customer relationships. This is
reflected in the strong growth in our Top 10 and Top 25 customers
across the company.
We are continuing to invest ahead in building our talent
pipeline, and are expanding our presence across locations in
India and overseas. Our employee
retention continues to be the best amongst our peers and industry
at large.
Even as we step into the new financial year, we are pleased to
announce two new members to the board. Mr. Soumitra Bhattacharya has had an illustrious
corporate career especially in the automotive industry with over 28
years with the Bosch group. He serves as Chairman of Bosch Limited,
and is the Director for IFQM - an industry-led initiative
focused on Quality, Excellence, and Innovation. Ms. Ashu
Suyash is a highly respected leader and served as MD and CEO of
CRISIL, among leadership roles across many leading institutions.
She has recently set up Colossa Ventures, an investment ecosystem
for women entrepreneurs, and is an Independent Director on a few
Boards including Hindustan Unilever. We look forward to leveraging
the rich experience and network, industry knowledge and strategic
inputs from our new directors.
I am pleased with our overall performance and resilience in
revenues, margins, and customer additions through the year, in a
volatile macroeconomic environment.
We are entering the new financial year with a commitment for
growth, and the continued confidence in our differentiated
design-led engineering capabilities. This is backed by strategic
relationships we have built over years with key customers, the
qualitative change in revenues towards OEMs and SDV programs,
entries into new operators and marquee healthcare logos,
investments in strategic technology areas and AI, and the strong
deal pipeline we carry into the new financial year."
About Tata Elxsi
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. For more information,
please visit www.tataelxsi.com
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