Tata Elxsi share price went down by 2% today, despite declaring a dividend of Rs. 70 per equity share on April 23. The decrease happened after Q4 results, which showed a 4.6% decline in net profit sequentially compared to the previous quarter.

According to the company’s recent regulatory filing, Tata Elxsi’s net profit declined by 4.6% to Rs 197 crore in Q4FY24, compared to Rs 206.4 crore in Q3FY24. The net profit also decreased by 2.3% year-on-year.

Operational revenue for the quarter fell by 1% to Rs 906 crore from Rs 914.2 crore in the December quarter but showed an 8.1% increase compared to the same period last year.

Tata Elxsi’s operational earnings before interest, tax, depreciation, and amortisation (EBITDA) for the March quarter declined by 4.5% to Rs 233.7 crore from Rs 244.7 crore in the December quarter. 

The decline was caused by reduced business from a single media client within the Media & Communication vertical, which experienced a 4% quarter-on-quarter decline in constant currency.

The report also mentioned that growth in the Transportation vertical was hindered by delays in deal ramp-up, resulting in a modest 1.2% quarter-on-quarter increase in constant currency. 

Although Tata Elxsi’s shares have corrected more than 30% from their record highs, the dividend declared for FY24 has surpassed its previous records. 

For the latest financial year, the company has declared its highest-ever dividend per share (DPS) of Rs 70, translating to a dividend outgo of Rs 436 crore. That’s more than half of its full-year net profit, which stood at Rs 792 crore.

It is noteworthy that the DPS of Tata Elxsi has seen a ten-fold jump over the last eight years, between FY20-FY24, the dividend payout has increased at an annualized rate of 39% to Rs 436 crores. 

In comparison, the revenue increased at a compounded rate of 17% to Rs 3,552 crore and profit at 22% to Rs 792 crore.

While Tata Steel has a higher number of outstanding shares among the group companies, the equity base of Tata Elxsi stood at just 6.2 crore as of March 2024, compared to 1,248 crore outstanding shares for Tata Steel and 362 crore for TCS.

Tata Elxsi manufactures computers and workstations, besides providing system design, software development, and integration services.

At 2:12 pm, the shares of Tata Elxsi were trading 5.06% lower at Rs 7,021.00 on NSE.