Tata Elxsi : Financial Reporting Document

Q3 FY23 Earnings Presentation and Fact Sheet

Jan 25, 2023

Disclaimer

This release may contain certain future prospects which may be a forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These forward-looking statements represent only the Company's current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.

Note: All numbers have been rounded to the nearest digit for convenience of representation.

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Message from the CEO and Managing Director

Manoj Raghavan

CEO and MD

Tata Elxsi Ltd.

"We have delivered a quarter of steady growth in a seasonally weak and challenging quarter for the technology industry and macro-economic uncertainty in our key markets. We are seeing strong and sustained growth in the Automotive and adjacent segments in Transportation, led by our differentiated EV and digital capabilities. We won multi-year deals in EV and Software Defined Vehicle architectures in the automotive space, and a strategic entry into a global OEM software organization.

Our Media & Telecom and Healthcare businesses saw some impact of delayed decision-making, furloughs and a short quarter. We have done well to protect our business and position ourselves strongly for upcoming strategic deals.

Our Design business continues to win Design Digital deals for the company across our key verticals and seed opportunities for larger development.

For us, this has been a quarter of focusing on positioning ourselves strongly for the future with our unique design-led capabilities, scaling across our customer base, and harnessing the exceptional investments in employee additions we have made in the last quarter and before.

We are entering the last quarter of the financial year with a strong order book and a healthy deal pipeline across key markets and industries, and a differentiated Design Digital positioning."

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Highlights for Q3 FY23

Revenue

Sequential	YoY Revenue	QoQ Constant
Growth	Growth	Currency Growth

817.7 INR Cr	7.2%	28.7%	3.5%
Profitability	EBITDA INR Cr	PBT INR Cr	PAT INR Cr
EBITDA Margin	246.9 Cr	240.1	194.7
30.2%	(9.0% QoQ)	(9.6% QoQ)	(11.7% QoQ)
EPS	Q3 FY23	QoQ Growth	YoY Growth
	31.26	11.7%	29.0%

People

Closing	Net	LTM
Headcount	Additions	Attrition

11607	-72	18.4%

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Financial Highlights - Q3FY23

Revenue

• Revenues from operations at Rs. 817.7 Cr, + 7.2% QoQ, + 28.7% YoY

Profit

• Operating Margin at 30.2 %; Net Margin (PBT) at 28.7%
• Profit Before Tax (PBT) at Rs. 240.1 Cr, +19.9% YoY
• Profit After Tax (PAT) at Rs. 194.7 Cr, +29.0% YoY

Segment Highlights

• Transportation witnessed stellar growth of 12.0% QoQ and 33.2% YoY, aided by large deals and growth across customers in EV, Software Defined Vehicles (SDV) and adjacencies.
• Healthcare growth at 28.4% YoY, driven by new product engineering, digital health and regulatory services.
• Media and Communications grew 14.7% YoY in a challenging quarter for the industry, aided by platform-led deals and entry into new operator accounts.

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