TATA to bad days, Tata Elxsi posts good numbers this time

Tata Elxsi (TEL) declared its Q3FY16 results. The company's revenue increased by 3.95 per cent to Rs 274 crore in Q3FY16 from Rs 264 crore in Q2FY16. Its total expenditure increased by 2.65 per cent to Rs 208 crore in Q3FY16 as compared to previous quarter.

TEL reported EBITDA of Rs 66.34 crore, with growth of 8.24 per cent in Q3FY16 on a quarterly basis. The company's EBITDA margin expanded by 95 basis points to 24.2 per cent in Q3FY16 as compared to previous quarter. Its PAT also increased by 4.67 per cent to Rs 39.89 crore in Q3FY16 on a quarterly basis. TEL's PAT margin expanded by 10 basis points to 14.55 per cent in Q3FY16 as compared to previous quarter.

On segment revenue front, TEL earned a revenue of 95.46 per cent from Software Sales & Service segment; and remaining 4.54 per cent from System Integration segment during December 2015 quarter.

Considering nine month result, TEL's revenue increased by 26.39 per cent to Rs 781 crore in 9MFY16 as compared to same period in previous financial year. The company's EBITDA too rose by 38.44 per cent to Rs 180 crore in 9MFY16 as on a yearly basis. TEL's other income increased by almost three times to Rs 11.24 crore in 9MFY16 as compared to same period in previous fiscal year.Its PAT is also boosted by 55.62 per cent to Rs 114 crore in 9MFY16 on a yearly basis.

The share price of TEL increased by 2.6 per cent on bourses in early trades and is trading at Rs 1717.25 on an intraday basis.

TEL is in the business of design and development of computer hardware and software. The company operates in two segments: software development and services; and system integration and support. Its software development and services segment consists of three business divisions viz. Embedded Product Design; Transportation; and Broadcast and Consumer Electronics. TEL's system integration and support segment offers systems and solutions for computing;broadcast; virtual reality; storage; and disaster recovery.