What explains the robust performance of Tata Elxsi in the fourth quarter?

Tata Elxsi reported 31.5% growth in sales for the Mar-22 quarter at Rs.682 crore. Sequential revenues were higher by 7.29%. In terms of verticals, the Embedded Product Design (EPD) division saw constant currency revenue growth of 34.7%. The Industrial Design and Visualization (IDV) business grew 34.9% in constant currency revenue terms. In industry segments, transport revenues grew 37.9% yoy on large EV deal wins. Media and communications grew 33% while healthcare segment showed 66% growth yoy.

Net profit for Mar-22 quarter increased by 38.9% at Rs.160 crore, but were up 6% on a sequential basis. A big booster to the profit came from robust EBITDA margins at 32.5%. Tata Elxsi declared a final dividend of Rs.42.50 per share, subject to approval of shareholders. PBT margins of Tata Elxsi stood at 31.5%. Net margins for Mar-22 quarter was 23.47% compared to 22.22% in Mar-21 quarter. Net margins were lower by 29 basis points on a sequential basis, compared to Dec-21 quarter, due to operating cost pressures.