Q2 2025 Tata Elxsi Ltd Earnings Call Transcript
Key Points
- Tata Elxsi Ltd (BOM:500408) reported a steady quarter with revenues from operations growing to INR955.1 crore, marking a quarter-on-quarter growth of 3.1%.
- The transportation business continues to drive growth, with a healthy revenue increase of 4.4% quarter-on-quarter in constant currency terms.
- The company secured a landmark USD50 million multiyear deal from a global OEM headquartered in Europe, enhancing its position in the automotive engineering sector.
- EBITDA margins expanded by 70 basis points to 27.9% for the quarter, indicating improved operational efficiency.
- Revenues from India grew by 31.2% year-on-year, while Japan and emerging markets saw an impressive growth of 81.9% year-on-year.
- The media and communication business declined by 2.2% quarter-on-quarter in constant currency terms due to pending customer decisions and project completions.
- The healthcare and life sciences business reported a significant decline in top line by 11.2% quarter-on-quarter in constant currency terms, attributed to delays in program renewals.
- Attrition remains a concern, although it is under control at 12.5%, indicating potential challenges in talent retention.
- The company is cautious about headcount additions, reflecting a conservative approach amidst uncertain market conditions.
- The media and communications sector is experiencing significant challenges, with tightening budgets and consolidations impacting growth prospects.
Ladies and gentlemen, good day, and welcome to the Tata Elxsi Q2 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 on the call. Good morning for joining us 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 risk that would cause further result performance or achievements that differ significantly from what is expressed or implied by such forward-looking statements.
To take us 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 Marketing and Chief Strategy Officer
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