Tata Elxsi surges 5%, hits record high on strong September quarter earnings
Shares of Tata Elxsi rallied 5 per cent and hit a record high of Rs 1,533.55 on the BSE on Thursday after reporting 56 per cent year on year (YoY) growth in profit before tax (PBT) at Rs 110 crore in the July-September quarter (Q2FY21). The company's operational revenues grew 11.5 per cent YoY at Rs 430 crore. On sequential basis, revenues and PBT jumped 7.4 per cent and 17 per cent, respectively.
The company’s growth was driven by both its key businesses – Embedded Product Design (EPD) and Industrial Design & Visualisation (IDV).
The management said it is seeing some recovery in the automotive market. The company has closed some large deals, including a multi-year deal with a European Tier1 supplier for vehicle electronics and software. The company has also added new automotive customers including a new OEM (Original Equipment Manufacturer), it said.
“We are going into the second half of FY21 with a strong deal pipeline across geos and verticals, and a significant number of large deals that we are pursuing. We are back to our pre-Covid momentum and expect this momentum to continue into H2 FY21”, said Manoj Raghavan, CEO and Managing Director.
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.
At 10:07 am, the stock was trading 4 per cent higher at Rs 1,513 on the BSE, as compared to 0.07 per cent rise in the S&P BSE Sensex. A combined around 1 million equity shares have changed hands on the counter on the NSE and BSE, so far.