Understanding Tata Elxsi’s Financial Performance in Q4 FY24 📈
If you’re interested in the financial performance of engineering service provider, Tata Elxsi, you’ll be intrigued to know that they reported a 4.5% sequential decline in net profit at Rs 197 crore in the final quarter of FY24. This decline was primarily attributed to a drop in margins and a one-time ramp-down. Even the net profit was down by 2.3% on-year. Here’s a breakdown of Tata Elxsi’s Q4 performance:
Revenue and Profit Analysis 📊
- Tata Elxsi’s Q4 revenue stood at Rs. 905.9 crore, reflecting a 0.9% QoQ decline.
- This was the first time since Q1 of FY21 that the company witnessed a sequential revenue drop.
Yearly Comparison
- For the full fiscal year, Tata Elxsi’s revenue grew by 13% on-year, reaching Rs 3,552 crore.
Impact on Verticals 💼
- The company’s media and communication vertical saw a decline of 4.6% in constant currency terms in Q4.
- They also experienced a one-time ramp-down by a customer during this period.
CEO’s Perspective on Growth 🚀
Manoj Raghavan, CEO, and MD of Tata Elxsi, expressed his views on the financial year 2024 and the company’s future outlook:
- Raghavan highlighted the consistent operational performance despite global uncertainties and industry volatility.
- The company maintained EBITDA margins at 29.5% for the year.
- He emphasized the commitment to growth, citing strong customer relationships, deal wins, and investments in critical areas.
Talent and Technology Focus 🧠
- Attrition decreased by 50 bps to 12.4% in Q4 of FY24.
- The company’s headcount grew by 178 to reach 13,399 by the end of the year.
- Tata Elxsi aims to have 25% of its talent base AI-ready by Q3 FY25.
Strategic Partnerships and Collaborations
- Tata Elxsi has partnered with key players like NVIDIA, AWS, Microsoft, Google, Intel, and Brainchip.
- The company’s AI Lab at the Indian Institute of Science (IISc) is equipped with NVIDIA GPU infrastructure for advanced AI/ML research.
Hot Take: Tata Elxsi’s Path to Growth in FY25 🔥
As Tata Elxsi navigates through the complexities of the engineering services industry, it faces both challenges and opportunities for growth. With a focus on technology, talent, and strategic partnerships, the company is poised to capitalize on emerging trends and solidify its position in the market. Keep an eye on Tata Elxsi as it embarks on an exciting journey in FY25.
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