Tata Elxsi shares surged nearly 3.5% to Rs 6,577.75 on the BSE at 09:30 am after reporting strong Q3 results.

The Tata Group company’s net profit increased 43.49% to Rs 150.95 crore in Q3 December 2021 over Q3 December 2020, owing to a 33.18% increase in revenue from operations to Rs 635.41 crore.

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In Q3 December 2021, Tata Elxsi’s net profit increased by 20.4%, while revenue from operations increased by 6.7% from Q2 September 2021. Constant currency revenue increased by 6.5% QoQ and 32.7% year on year (YoY).

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EBITDA increased 14.8% quarter on quarter and 46.8% year on year to Rs 210.8 crore, while profit before tax (PBT) increased 17.1% quarter on quarter and 36.9% year on year to Rs 200.3 crore. The PBT margin grew from 28.6% to 31.2% in the third quarter. The EBITDA margin was 33.2%, while the net margin was 23.5%.

For the first time in its history, the company exceeded the Rs 200 crore PBT and Rs 150 crore PAT marks.

The company’s largest division, Embedded Product Design (EPD), drove the growth, increasing by 9.9% QoQ and 36% year on year.

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With a year on year increase of 12.4% and a year till date increase of 61.7%, the Industrial Design & Visualisation (IDV) division continues to power the company’s strategic design-led digital contract wins.

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Manoj Raghavan, CEO and managing director, Tata Elxsi, said: “We are pleased to report another quarter of consistent and strong growth, supported by differentiated offerings and industry-leading operational excellence. We continue to execute strongly on all our key strategies, driving growth across our three primary industry verticals and regions, building on our software and digital product engineering capabilities.”

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Tata Elxsi is a global leader in design and technology services for industries such as transportation, media, communications, and healthcare and medical devices. It offers complete services ranging from research and strategy through electronics and mechanical design, software development, validation, and deployment, and is backed up by a global network of design studios, development centres, and offices.