Tata Elxsi share price gains as Q2 profit jumps 58% to Rs 78 crore

Tata Elxsi share price was up 2 percent in the morning trade on October 15 after the company declared its September quarter results.

The company reported a 58.3 percent increase in net profit to Rs 78.8 crore for the September 2020 quarter. It had registered a net profit of Rs 49.8 crore in the year-ago period, Tata Elxsi said in a regulatory filing. Its revenue from operations rose 11.5 percent to Rs 430.2 crore for the said quarter from Rs 385.8 crore in the corresponding period a year ago, CNBC-TV18 reported.

The company's growth was driven by both its key businesses — Embedded Product Design (EPD), and Industrial Design and Visualisation (IDV), it said in a statement. EPD — the company's largest division — grew by 7.1 percent quarter-on-quarter and 15.1 percent year-on-year, it added.

IDV also posted growth of 15.1 percent QoQ with some key international design project wins, the statement said. It was a pretty satisfying quarter with all-round growth across key verticals and geographies, Tata Elxsi CEO and managing director Manoj Raghavan said.

"We are seeing some recovery in the automotive market. We have closed some large deals including a multi-year deal with a European Tier 1 supplier for vehicle electronics and software. We have also added new automotive customers including a new OEM," he added.

The stock was trading at Rs 1,486.60, up Rs 29.65, or 2.04 percent at 09:28 hours. It has touched a 52-week high of Rs 1,512.85.

Raghavan said the company is going into the second half of FY21 with a strong deal pipeline across geographies and verticals, and a significant number of large deals that it is pursuing.