Tata Elxsi Q2 Results: Profit rises 10% YoY to Rs 170 crore; revenue grows 15%

Tata Elxsi on Tuesday reported a 10% year-on-year (YoY) rise in net profit for the September quarter, helped by double-digit growth in revenue even as higher employee and operating costs kept profit growth below the top-line expansion. The company’s net profit for the quarter ended September stood at Rs 170 crore, compared with Rs 155 crore in the same period last year.

Revenue from operations rose 15% YoY to Rs 1,056 crore from Rs 918 crore a year earlier. Total income from operations, including other income, increased 13% to Rs 1,090 crore, compared with Rs 967 crore a year earlier. Other income fell to Rs 35 crore from Rs 49 crore, partly weighing on the overall profit growth.

Profit before tax rose 11% to Rs 239 crore from Rs 215 crore in the year-ago quarter. Total tax expense increased to Rs 69 crore from Rs 60 crore. There was no exceptional item in the quarter.


The company’s total expenses grew 13% YoY to Rs 851 crore from Rs 752 crore. Employee benefit expenses, the largest cost item for the company, rose 15% to Rs 620 crore from Rs 539 crore. Other expenses also increased 15% to Rs 131 crore from Rs 114 crore.

Cost of materials consumed rose marginally to Rs 73 crore from Rs 72 crore. Depreciation and amortisation expense stood at Rs 24 crore, compared with Rs 23 crore a year earlier. Finance costs declined to Rs 3.57 crore from Rs 4 crore.

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The company’s profit before tax margin on revenue from operations stood at 22.7%, compared with 23.4% a year earlier. Net profit margin also moderated to 16.1% from 16.9%, reflecting the impact of higher costs and lower other income.

Net profit for the six-month period increased 14% to Rs 341 crore, compared with Rs 299 crore in the same period last year. Profit before tax for the April-September period rose 15% to Rs 472 crore from Rs 411 crore. Total income from operations stood at Rs 2,153 crore, up 13% from Rs 1,897 crore a year earlier.

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