Tata Elxsi shares rose 2.92% to Rs 8025.75 after the company reported a 62.9% increase in net profit to Rs 184.72 crore and a 30% increase in revenue from operations to Rs 725.89 crore in Q1 FY23 compared to Q1 FY21.

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The company’s net profit and revenue from operations increased by 15.4% and 6.5%, respectively, in Q4 FY22 (QoQ). Profit before tax (PBT) was Rs 228.02 crore, up 3.5% QoQ and 48.1% year on year. EBITDA increased 7.6% QoQ and 58.8% year on year to Rs 238.2 crore in Q1 FY23.

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In Q1 FY23, the EBITDA margin was 32.8%. The company’s growth was predominantly driven by volume, with all three businesses, Embedded Product Design (EPD), Industrial Design and Visualization (IDV), and SIS, posting QoQ growth rates of 6.2%, 6.6%, and 19.8%, respectively.

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With 771 net additions in the quarter, the company’s total workforce at the end of June 2022 surpassed 10,000. Transportation increased by 6.3% quarter on quarter and 41.8% year on year, led by big deals and engagements in EV and software-defined vehicles. Healthcare grew by 10% quarter on quarter and 53.6% year on year, fueled by digital health and global regulatory services.

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Media and Communications recorded 4.7% QoQ and 29% year-on-year growth, backed by continued growth in key accounts and major deals in network transformation and AdTech.

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“We are starting FY23 on a strong note with 6.5% QoQ revenue growth in constant currency. This was all volume-led and supported by robust growth across divisions, verticals and key markets. We continue to maintain and expand our margins with our EBITDA growing at 58.8% YoY and PAT growing at 62.9% YoY. Our differentiated delivery capability powered by Domain, Design, and Digital, is helping us continue to win deals which are of strategic importance to our customers,” said Manoj Raghavan, CEO and managing director of Tata Elxsi.

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“I am delighted that the Tata Elxsi family is now over 10,000 people strong. We added 771 employees on a net basis in the quarter, more than doubling from the previous quarter. This has been aided by concerted efforts in reinforcing our employer brand proposition and employee engagement that have helped reduce our attrition rate in the quarter. We are also expanding our delivery presence with a new centre in Kozhikode,” he added.

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Tata Elxsi is a global leader in design and technology services for sectors such as automotive, broadcast, communications, healthcare, and transportation.