Tata Elxsi is electric!

Tata Elxsi delivered a good set of earnings for Q2FY21.

Its revenue from operations rose over 7% (QoQ) at Rs.430 crore. Net profit rose 14.5% to Rs.79 crore but YoY, the growth was impressive – up over 58% and this is a comparison of pre-Covid and post/during Covid.

Operating profit was up 30% at Rs.107 crore and margins rose from 20.45% to 24.84%.

The company’s growth was driven by both its key businesses – Embedded Product Design (EPD) and Industrial Design & Visualisation (IDV). EPD, the company’s largest division, grew by 7% QoQ and 15.1% YoY.

Within EPD, Healthcare grew at 14% while Media and Communications delivered another quarter of steady growth at 7%. The Transportation vertical grew by 6% and IDV also posted a growth of 15% with some key international design project wins.

“We are going into the second half of FY21 with a strong deal pipeline across geos and verticals, and a significant number of large deals that we are pursuing. We are back to our pre-Covid momentum and expect this momentum to continue into H2 FY21”, said Manoj Raghavan, CEO and Managing Director.

The stock has been right among the top three gainers on the BSE since the opening bell. It opened with a gain of over 2% and hit an intraday high at Rs.1533.55, up almost 5.5% and hitting a new high.