Tata Elxsi Q3 net profit jumps 14%; stock climbs 6%

Tata Elxsi on Monday reported a 14.25 per cent year-on-year (YoY) rise in net profit at Rs 75.42 crore for the December quarter. Analysts were largely expecting the firm to report a flat profit.

The company had reported Rs 65.99 crore profit in the same quarter last year.

Net sales for the quarter rose 4 per cent to Rs 423.43 crore compared with Rs 407 crore in the year-ago period, the company informed stock exchanges.


Following the development, the stock climbed 6 per cent to hit a high of Rs 899.10 on BSE.

Investors were keenly awaiting further details such as the commentary on top-account growth, demand outlook in the automotive and media vertical, margin trajectory, demand outlook in the wake of Brexit, and commentary on diversification strategy and large deal wins.

Sharekhan in its December quarter preview included the stock among its top midcap IT picks.