With a 6.5 percent QoQ increase in revenue in constant currency, the flagship firm of the Tata Group has had a great start to FY23.
After solid Q1 earnings were announced on Thursday, IT giant Tata Elxsi’s share price increased in early Friday morning trades. Today, Tata Elxsi’s share price opened near 140 per share higher than where it closed on Thursday. It later reached an intraday high of 8037.75 per share on the NSE, a 3 percent increase.
Tata Elxsi posted solid Q1 earnings as the IT giant recorded revenue from operations of £725.9 crore, reporting QoQ growth of 6.5% and YoY growth of 30%. The company’s profits after taxes (PAT) increased by 15.4% quarter over quarter and by 62.9% year over year to 184.7 crore. Volume drove the majority of the company’s growth across all three of its areas.
Speaking on the strong Q1FY23 numbers, Manoj Raghavan, CEO and Managing Director at Tata Elxsi said, ““We are starting FY23 on a strong note with 6.5 percent 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 percent YoY and PAT growing at 62.9 percent YoY.”
“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,” he added
One of the multibagger stocks the Indian stock market has created over the past few years is this Tata Group company. While the majority of IT stocks have provided positional investors with nil return year to date, Tata Elxsi has returned 35% to shareholders. This IT stock has produced returns of more than 75% over the past year, and 84% over the past five years for its shareholders.
