Equity

Corporate Results

Tata Elxsi
(23-Oct-2019, 10:09 Hours IST)  
Tata Elxsi for the quarter ended Sep 2019 reported 7% growth in revenue to Rs 385.83 crore compared to sequential previous quarter ended June 2019 revenue of Rs 361.71 crore. Upside in revenue was driven by growth in transporation, media & communication and design & visualization verticals of the company. The transportation vertical that typically accounts/contribute for/about 45% of the revenue grew by 9%qoq. The media & communication registered a steady growth of 5%qoq and the design & visualization vertical grew by 13%qoq.

As OPM contracted by 110 bps to 18.2% from 19.3% in sequential previous quarter the growth at operating profit level was restricted at 1% to Rs 70.36 crore. With other income stand higher by 1% to Rs 12.39 crore, the PBIDT was up by 1% to Rs 82.75 crore. However hit by higher interest cost and higher depreciation, the PBT was flat (up 0%qoq) to Rs 70.44 crore. Eventually the PAT was up by 2%qoq to Rs 49.81 crore (compared to Rs 48.79 crore in sequential previous quarter ended June 2019) facilitated by lower tax incidence.

The company charged P&L in Q2FY20 an amount of Rs 21.63 crore towards special retiral benefit payable to managing director who retires by Oct 2019, as approved by the Board of Directors during the quarter under the head employee benefit expenses. But for this charge the OPM would have expanded by 450 bps to 23.8% from 19.3% in corresponding previous period and the OP would have jumped by 32% to Rs 91.99 crore.

Quarterly performance YoY comparison

Sales for the quarter ended Sep 2019 was down by 4% to Rs 385.83 crore. But with OPM contracting by 830 bps to 18.2% from 26.5% in corresponding previous quarter ended Sep 2018, the operating profit was down by 34% to Rs 70.36 crore. Hit further by lower other income, higher interest and higher depreciation, the PBT was down by 43%yoy to Rs 70.44 crore. Eventually the PAT was down by 39% to Rs 49.81 crore with taxation stand lower by 51%yoy to Rs 20.63 crore.

But for the charge of Rs 21.63 crore towards special retiral benefit payable to managing director under the head employee benefit expenses the OPM would have stood at 23.8%, a fall of 270 bps from 26.5% in corresponding previous period. Thus the operating profit would have been down by 14% to Rs 106.72 crore.

Half yearly performance

Sales for the period was down by 5%yoy to Rs 747.54 crore and with OPM crash by 840 bps to 18.8% (from 27.2%), the operating profit witnessed sharp fall of 34%yoy to Rs 140.21 crore. Hither further by lower other income (down 21% to Rs 24.50 crore), higher interest (up to Rs 2.68 crore against nil) and higher depreciation (up 76% to Rs 21.41 crore), the PBT was down by 39% to Rs 140.62 crore. After accounting for taxation (down 47% to Rs 42.03 crore), the fall at PAT was restricted at 35% to Rs 98.60 crore.

But for the charge of Rs 21.63 crore towards special retiral benefit payable to managing director made during Q2FY20 under the head employee benefit expenses, the OPM would have stood at 21.6%, a fall of 560 bps from 27.2% in corresponding previous period. Thus the operating profit would have been down by 24%yoy to Rs 161.84 crore.

Management Comment

Manoj Raghavan, CEO and Managing Director, Tata Elxsi commenting on the performance said, The company has delivered steady growth across businesses and geographies. The transportation vertical saw a sharp recovery from last quarter, helping overcome the decline with the top customer that impacted our results in the first quarter. The performance was a combination of mining existing customers as well as new customer additions. We have won some large deals in both automotive and Media & Communications verticals and added new customers across geographies that we expect to grow in further quarters.

Tata Elxsi: Financial Results

 

1909 (3)1906 (3)Var. (%)1809 (3)Var. (%)1909 (6)1809 (6)Var. (%)1903 (12)1803 (12)Var. (%)
Sales385.83361.717402.78-4747.54784.82-51596.931386.3015
OPM (%)18.219.326.518.827.226.025.0
OP70.3669.851106.72-34140.21213.24-34415.03346.0120
Other Inc.12.3912.11223.32-4724.5031.17-2143.4643.250
PBIDT82.7581.961130.04-36164.71244.41-33458.50389.2618
Interest1.361.3230.002.680.000.000.00
PBDT81.4080.641130.04-37162.03244.41-34458.50389.2618
Dep.10.9610.4556.088021.4112.197625.1025.35-1
PBT before EO 70.4470.190123.96-43140.62232.22-39433.40363.9119
EO0.000.000.000.000.000.000.00
PBT70.4470.190123.96-43140.62232.22-39433.40363.9119
Tax20.6321.40-441.77-5142.0379.54-47143.43123.8716
PAT49.8148.79282.18-3998.60152.68-35289.97240.0421
EPS * (Rs)32.031.352.831.749.046.638.5
* Paid up equity capital is Rs 62.2764 crore, Face value Rs 10
Figures in crore (P): Projections PL: Profit to Loss
Source: Capitaline Databases

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