What is your quick take on the quarterly results reported by Tata Elxsi for Dec-21 quarter?

Tata Elxsi Ltd reported 33.2% higher sales for the Dec-21 quarter at Rs.635.41 crore on a yoy basis while the sequential growth in sales stood at 6.73%. Tata Elxsi operates a niche design led technology services with its specialized Embedded Product Design (EPD) vertical seeing strong and robust growth of 36%. This business has also grown at a sequential rate of 9.9%. For Q3, the Transportation and connected technologies verticals were key sales drivers.

Profit after tax (PAT) for Dec-21 quarter showed an increase of 43.49% at Rs.151 crore. This profit growth was largely on the strength of EBITDA growing 46% yoy at Rs.211 crore. Sequential growth in EBITDA at 14.8% was led by the EPD and connected technologies business.

The EBITDA margins came in at 33.2% for the quarter which is among the best in class operating margins for the specific set of verticals. The IDV business drove most of the deal wins registering 61.7% growth yoy. PAT margins showed a meaningful increase from 22.05% in Dec-20 quarter to 23.76% in Dec-21 quarter.