Tata Elxsi Q3 results: Net profit up 39.5% at Rs 105 cr

Tata Elxsi on Tuesday said its net profit has increased 39.5 per cent to Rs 105.2 crore for the December 2020 quarter.
The company had registered a net profit of Rs 75.4 crore in the year-ago period, Tata Elxsi said in a regulatory filing.

Its revenue from operations rose 12.7 per cent to Rs 477.1 crore for the said quarter from Rs 423.4 crore in the corresponding period last fiscal, it added.

In a statement, Tata Elxsi CEO and Managing Director Manoj Raghavan said the company saw all-round growth across industries and geographies.

"We continue to execute strongly on both top line and bottom line, with double-digit quarter-on-quarter revenue growth and industry-leading operating margins. Our Healthcare business continues to accelerate, while Media and Communications reported another strong quarter of sustained growth," he said.

Raghavan added that the company has seen new customer additions and large deals in both the industries in the quarter.

"We are seeing a sustained recovery in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to the resumption of projects as well as deals with Tier 1 suppliers. We have added new automotive customers, including a new age OEM in North America," he said.

The company has also closed some large deals, including a multi-million dollar deal with a European Tier 1 supplier for vehicle electronics and software, and with a North American Tier 1 supplier for autonomous driving, Raghavan said.

"The growth in our design business has been equally satisfying...We are entering the fourth quarter and a new year with the reinforced confidence of a strong deal pipeline across markets and industries, and capabilities in product engineering, design and digital, that make our offerings more relevant and our market position stronger than ever before," he noted.

The company's headcount stood at 6,816 at the end of December 2020 quarter.