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Tata Elxsi surges 5% after Q4 results; Check earnings, stock details here
Shares of Tata Elxsi rose over 5.5 per cent on Monday, despite the company reporting a 12.4 per cent year-on-year (Y-o-Y) decline in net profit to ₹172.4 crore for the fourth quarter.
Tata Elxsi's stock rose as much as 5.57 per cent during the day to ₹5,173 per share. The stock was trading 5.4 per cent higher at ₹5,168 apiece, compared to a 0.86 per cent advance in Nifty50 as of 10:34 AM.
Shares of the company snapped a two-day losing streak on Monday. The stock has fallen 24 per cent this year, compared to a 1.5 per cent advance in the benchmark Nifty50. Tata Elxsi has a total market capitalisation of ₹32,169.44 crore.
Tata Elxsi has reported a 12.4 per cent fall in net profit to ₹172.4 crore in the fourth quarter (Q4FY25) from ₹196.9 crore in the same period last year. Revenue from operations for the period under review aggregated to ₹908.3 crore, up 0.3 per cent (Y-o-Y).
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Earnings before interest, taxes, depreciation and amortisation (Ebitda) fell by 20.5 per cent to ₹207.7 crore in the fourth quarter from ₹261.2 crore posted in the same period last year. Ebitda margin in Q4FY25 was 22.9 per cent as against 28.8 per cent in Q4FY24.
Tariff uncertainties hit earnings
Tata Elxsi's top clients in the auto industry have paused several projects due to tariff-related concerns, Chief Executive Officer, Manoj Raghavan said during the post-earnings call. This has impacted the company's performance, particularly in its key markets of Europe and the US. However, Raghavan noted that the company expects growth visibility in the current quarter from major customers in the segment.
The transportation segment—Tata Elxsi's largest—offers software and engineering services to automakers and auto component manufacturers, including the design of parts and technologies. Revenue from this segment declined marginally year-on-year and nearly 10 per cent sequentially. It contributes around 53 per cent of the revenue from the company's software development and services unit, which accounts for over 96 per cent of Tata Elxsi's total revenue.
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