New Delhi, April 17 (IANS) Tata Elxsi, a design-led technology services company, on Thursday reported a 14 per cent decline in its net profit for the fourth quarter of the financial year 2024-25 (Q4 FY25).
The company posted a net profit of Rs 172 crore in Q4, down from Rs 199 crore in the same period last year.
The drop in profits came as the company faced headwinds in key verticals such as automotive and media and communications.
Revenue for the quarter also slipped by 3.3 per cent year-on-year (YoY) to Rs 908.3 crore, compared to Rs 939 crore in the corresponding quarter of the previous year.
The operating margin narrowed to 22.8 per cent, down from 26.3 per cent last year, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) falling 16 per cent to Rs 207.3 crore.
Despite the slowdown, Tata Elxsi’s board has recommended a final dividend of Rs 75 per share for the financial year, subject to shareholder approval.
For the full financial year 2024-25, the company reported revenue of Rs 3,729 crore and a profit before tax (PBT) margin of 26.3 per cent.
CEO and MD Manoj Raghavan acknowledged the challenges faced during the quarter, particularly in the automotive segment, where new programme starts were paused and deal ramp-ups were delayed due to geopolitical and market uncertainties.
However, he expressed optimism going forward, citing a 50 million euros multi-year deal with a European automotive leader that will begin in the first quarter of FY26.
The company’s media and communications business also faced disruptions due to client mergers and restructuring, but it secured a major product engineering deal worth over 100 million dollars with a marquee operator, the largest in Tata Elxsi’s history.
Another 10 million dollar contract was also won from a global broadcaster.
On a positive note, the healthcare and life sciences segment posted a 3.5 per cent quarter-on-quarter (QoQ) growth in constant currency, adding new clients and scaling up services in digital and innovation.
The Systems Integration and Support business is shifting toward innovation-led projects and delivered a notable experiential project in Japan during the quarter.
–IANS
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