India’s Tata Elxsi posts Q3 profit rise on strength in transportation segment

By Reuters | Updated: 23 January, 2024

Jan 23 (Reuters) – Indian design and technology services company Tata Elxsi (TTEX.NS), opens new tab reported a 6% rise in third-quarter profit on Tuesday, helped by healthy demand in its transportation segment.

The company’s net profit rose to 2.06 billion rupees ($24.78 million) for the quarter ended Dec. 31 from 1.95 billion rupees a year ago. Revenue from operations rose to 9.14 billion rupees from 8.18 billion rupees a year ago.

The company’s transportation segment, which contributes about 47% of its revenue, grew 15.6% year-on-year, boosted by deal wins and sustained traction in the Software Defined Vehicles (SDV) engagements.

KEY CONTEXT

Major Indian IT companies reported mixed quarterly results earlier this month. Their commentary suggested that the demand environment has not deteriorated sequentially, signalling stabilisation and boosted bets of a rebound in the sector.

Infosys (INFY.NS), opens new tab, India’s second-largest IT company, narrowed its revenue forecast for the year, while HCLTech (HCLT.NS), opens new tab, the third-largest, trimmed the top end of its full-year revenue forecast.

Peer Persistent Systems (PERS.NS), opens new tabposted, opens new tab a 20.3% rise in quarterly profit on Saturday.

JULY-SEPTEMBER STOCK PERFORMANCE

PEER COMPARISON

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($1 = 83.1444 Indian rupees)

($1 = 83.1414 Indian rupees)

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