Tata Elxsi Faces Profit Dip Amid Strategic Expansion

Tata Elxsi reported a 12.4% decline in net profit for Q4 FY24 but secured a significant multi-year deal with a European automotive OEM. Despite the dip, revenue saw a slight increase. The company emphasizes investment in AI and expects stability and growth with significant deal wins.

Tata Elxsi has declared a 12.4% decline in its net profit for the quarter ending March, reporting Rs 172.41 crore compared to Rs 196.93 crore in the previous year. Revenue for the period saw a marginal increase to Rs 908.33 crore from Rs 905.94 crore in Q4 FY24.

The company's CEO and MD, Manoj Raghavan, highlighted growth in the Healthcare & Life Sciences sector despite challenges in the automotive division due to market instabilities. However, Tata Elxsi secured a strategic multi-year contract worth 50 million euros with a leading European automotive OEM.

Raghavan emphasized investment in digital and AI technologies, with a notable portion of the workforce now AI-ready. The firm will establish a new engineering center as part of its expansion strategy, while a final dividend of Rs 75 per share has been recommended for FY25. Shares saw a slight dip, closing at Rs 4,899.75 on the BSE.

(With inputs from agencies.)