Tata Elxsi rises 3% on healthy Q1
Tata Group’s software development firm for embedded product design, animation and visual effects, was one of the firms from the same group report better earnings this Friday morning, after Rallis India poor Q1 show. The share has reacted positively, up by around 3% or by Rs. 37, at Rs. 1,450 now.
On a year on year basis, revenue for first quarter ended 30th June 2015 rose 28% to Rs. 244 crore, while operating profit jumped 64% to Rs. 47 crore. Sequentially too, company performed much better with revenues increasing by 5% QoQ and operating profits by 2%. Exchange gains of Rs. 3.9 crore in Q1FY15 as against loss of Rs. 4.2 crore in Q4FY15, helped net profit jump nearly 20% QoQ to Rs. 35.7 crore, leading to EPS of Rs. 11.47, vis-à-vis EPS of Rs. 32.76 for FY15. Company has strengthened net margins to 14.7% in the quarter gone by, from 12% in FY15.
Company has surplus cash per share of Rs. 43 on its books, as of 31-3-15. Annualised the first quarter results, leads to EPS of almost Rs. 46 for FY15, which discounts the Tata group company by a PE multiple of approximately 30 times, net of cash on hand. This has been a fundamentally sound company, reporting consistency in its financial workings.