Tata Elxis is the design-led technology service provider that reported a 39.1 per cent rise in net profit to Rs 174.28 crore on a 28.2 per cent increase in revenues from operations to Rs 763.17 crore in the second quarter of FY23 over the second quarter of FY21.

On a consolidated basis, the net profit of Tata Elxis declined 5.65 per cent. In comparison, revenue from operations grew 5.1 per cent, respectively, over the first quarter of FY23 (QoQ). In contrast, Profit before tax (PBT) stood at Rs 219.17 crore, registering a fall of 3.9 per cent quarterly but growth of 28.2 per cent yearly.

During the first quarter of FY23, EBITDA slipped 4.9 per cent, whereas it rose 23.4 per cent YoY to Rs 226.5 crore. EBITDA margin slid to 29.7 per cent in the second quarter of FY23 compared with 32.8 per cent in the first quarter of FY23 and 30.8 per cent posted in the second quarter of FY22. The total headcount of the company stood at 11,679 employees, with 1,532 net additions in the quarter. The additional rate stood at 18.7 per cent in the second quarter of FY23 compared to 19 per cent in the first quarter of FY23 and 13.9 per cent in the second quarter of FY22.

Transportation grew 3.8 per cent quarter on quarter and 30.4 per cent year on year, aided by large deals in EV, ADAS and adjacencies in rail and offroad vehicles. Healthcare continued to witness strong growth of 8.2 per cent quarter on quarter, driven by new product engineering and regulatory services.

Also, Media and Communications reported growth at 2.1 per cent quarterly and 22.2 per cent every year, aided by platform-led deals and entry into new operator accounts.

Manoj Raghavan, the CEO and managing director of Tata Elxsi said, ”We have delivered a quarter of steady growth amidst macro-economic uncertainty and currency headwinds in our key markets. We are gaining market share in both Automotive and Media & Communications, especially in Europe. The numbers are muted in the region due to unfavourable currency movement.”

The company is to help customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), Virtual Reality, Artificial Intelligence, Mobility and Cloud. The stock declined 8.10 per cent in recent trade at Rs 7,770.55