Q1 2025 Tata Elxsi Ltd Earnings Call Transcript
Key Points
- Tata Elxsi Ltd (BOM:500408) reported a steady quarter of growth with revenues from operations at INR926.5 crore, growing 2.4% quarter on quarter and 8.4% year on year in constant currency terms.
- The transportation business unit showed strong growth, reporting a 5.3% quarter-on-quarter and 20.3% year-on-year increase in constant currency terms.
- The company has successfully acquired a strategic network transformation project from a top telecom operator in North America, facilitated by their Neuron platform.
- Attrition rates have declined further during the quarter, indicating improved employee retention.
- Tata Elxsi Ltd (BOM:500408) continues to invest in digital AI engineering technologies across verticals, aiming to have 25% of their talent pool ready by December this year.
- EBITDA for the quarter was INR252.3 crore, showing only a 0.3% growth year on year, indicating stagnation in operational profitability.
- The Healthcare and Life Sciences business reported a decline in top line by 4.3% quarter on quarter in constant currency terms due to delays in project renewals.
- The company made a one-time contribution to the progressive electoral trust of INR19.78 crore, impacting the EBITDA and PBT margins.
- The media and communication industry remains challenging, with only a 0.5% quarter-on-quarter revenue growth in constant currency terms.
- The tax rate has increased due to the expiration of tax holidays in some SEZ units, which will likely continue to impact financial performance.
Ladies and gentlemen, good day, and welcome to the Tata Elxsi Q1 FY24/25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Shashank Ganesh from E&Y. Thank you, and over to you, sir.
Thank you very much. Good evening to all the participants in the call. Good morning for logging in from the western side. Before we proceed to the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. Therefore, it must be viewed in conjunction with the business risks that could cause further results, performance or achievements that differ significantly from what is expressed or implied by such forward-looking statements.
To take you through the results and answer your questions today, we have the senior management of Tata Elxsi represented by Mr. Manoj Raghavan, Managing Director and CEO; Mr. Nitin Pai, Chief
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