Tata Elxsi Share Price Dips 7.62%; Reports ₹199 Crore Profit in Q3 FY25 Results

Tata Elxsi announced its financial results for the third quarter ending December 31, 2024.

On January 10, 2025, Tata Elxsi share price opened at ₹5,950.00, down from its previous close of ₹6,439.95. At 9:40 AM, the share price of Tata Elxsi was trading at ₹5,949.25, down by 7.62% on the NSE. Notably, the stock touched its 52-week low at ₹5,929.85.

Financial Performance Highlights

The company reported an operating revenue of ₹939.2 crore. The company achieved an operating EBITDA of ₹246.6 crore, with an EBITDA margin of 26.3%. Profit After Tax (PAT) stood at ₹199.0 crore, reflecting a PAT margin of 20.3%.

Commenting on the performance, the CEO and Managing Director of Tata Elxsi, Mr Manoj Raghavan, said, “We continue to see positive outcomes of our strategic business focus on Japan, emerging markets and capitalising on the India opportunity. During the quarter, our revenue from India has grown by 21.9% YoY, while Japan and emerging markets grew at 66.8% YoY. This will serve us well over the next few quarters even as we navigate geopolitical uncertainty, currency volatility and industry-specific challenges in Europe and the US.”

Strategic Initiatives and Developments During the Quarter

He also stated that the automotive industry faced significant business challenges in recent months, with OEMs, particularly in the US and Europe, reporting sales and growth difficulties in their key markets. These challenges have affected new deal closures and Tier 1 supplier spending. Despite this challenging environment, Tata Elxsi successfully secured and executed large deals during the year, showcasing its ability to deliver differentiated value to customers. The company has managed to protect and grow its revenues, even during a difficult quarter for the global automotive industry.

During the quarter, TTata Elxsi established an Offshore Development Centre for Suzuki Corporation, Japan, to support their global technology and engineering development. The centre will play a key role in accelerating innovation across Connected, Autonomous, and Electric technologies.

The CEO and MD stated that Tata Elxsi unveiled its AVENIR SDV software suite, a cloud-native virtual development platform powered by Qualcomm’s Snapdragon Digital Chassis.

The suite offers solutions for accelerating the software-defined vehicle (SDV) and mobility roadmaps for global OEMs.

Despite seasonal challenges, the segment delivered QoQ constant currency growth.

A significant multi-year deal was secured with a US-based MSO for developing and managing their application portfolio.

The company’s Healthcare & Lifesciences business segment reported 1.1% QoQ growth, driven by marquee customer wins and traction in Gen AI-powered regulatory, digital engineering, and sustainability solutions.

“We step into the fourth quarter of this financial year with the confidence of large automotive deal wins in the year and quarter that will see continued ramp-ups even as we navigate the current volatility in the automotive market; the stability and return to growth in our healthcare and media & communications verticals, and large strategic deals in the pipeline across all our key verticals,” said Mr Manoj Raghavan.

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