(Reuters) – Indian design and technology services company Tata Elxsi on Tuesday posted a rise in quarterly profit, helped by growth in its transportation segment.
The company’s net profit rose 14.8% year-on-year to 2 billion rupees ($24.03 million), while revenue from operations climbed to 8.82 billion rupees.
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WHY IT MATTERS
Tata Elxsi’s results come after larger peers Tata Consultancy Services and Infosys posted an 8.7% and 3.2% rise in profit for the quarter, respectively, while flagging weak client spending amid inflationary pressures and high interest rates.
The company’s transportation business grew 26.1% year-on-year, helped by large deals and strong traction in Software Defined Vehicle engagements.
JULY-SEPTEMBER STOCK PERFORMANCE
PEER COMPARISON
Valuation (next Estimates (next Analysts’ sentiment
12 months) 12 months)
RIC PE EV/EBITDA Revenue profit Mean # of Stock to price Div yield
growth growth rating analysts target (%)
Tata Elxsi Ltd TTEX.NS 52.65 38.69 17.30 13.99 SELL 7 1.24 0.81
L&T Technology Services Ltd LTEH.NS 35.29 22.86 16.73 13.87 SELL 23 1.25 0.96
KPIT Technologies Ltd KPIE.NS 52.59 31.77 26.79 33.61 HOLD 10 1.13 0.33
LTIMindtree Ltd LTIM.NS 28.17 19.35 11.50 16.26 HOLD 36 0.97 1.16
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
— All data from Refinitiv
($1 = 83.2207 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; Editing by Varun H K and Sohini Goswami)
