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

(Reuters) – Indian design and technology services company Tata Elxsi 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.


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, India’s second-largest IT company, narrowed its revenue forecast for the year, while HCLTech, the third-largest, trimmed the top end of its full-year revenue forecast.

Peer Persistent Systems posted a 20.3% rise in quarterly profit on Saturday.



Valuation (next Estimates (next Analysts’ sentiment

12 months) 12 months)

RIC PE EV/EBIT Revenue profit Mean # of Stock to Div yield

DA growth growth rating analysts price target (%)

Tata Elxsi Ltd TTEX.NS 55.39 64.31 17.77 17.60 Sell 9 1.21 0.73

L&T Technology LTEH.NS 39.01 25.31 14.29 14.98 Sell 24 1.17 0.87

Services Ltd

KPIT Technologies Ltd KPIE.NS 58.52 35.42 24.56 31.36 Hold 11 1.07 0.27

LTIMindtree Ltd LTIM.NS 31.15 21.62 9.46 13.83 Hold 34 0.97 1.18

* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT

— All data from LSEG

($1 = 83.1444 Indian rupees)

($1 = 83.1414 Indian rupees)

(Reporting by Aleef Jahan in Bengaluru; Editing by Eileen Soreng)