Stocks - Q : Quality | V : Valuation | PT : Price Trend
Funds - P : Performance | Q : Quality
Funds - P : Performance | Q : Quality
BSE: 500408 | NSE: TATAELXSI | IT - Software | Mid Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Tata Elxsi Ltd is a good quality company.
The key valuation ratios of Tata Elxsi Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Tata Elxsi Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 60.5% | 70.8% | 56.2% | 56.3% | 51.7% | 35.4% | 42.5% | 51.2% | 51.8% | 46.6% | - |
| Value Creation Index ⓘ | 3.3 | 4.3 | 3.0 | 3.2 | 2.8 | 1.6 | 2.2 | 3.6 | 3.6 | 3.1 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 849 | 1,075 | 1,237 | 1,386 | 1,597 | 1,610 | 1,826 | 2,471 | 3,145 | 3,552 | 3,729 |
| Sales YoY Gr. | - | 26.6% | 15.1% | 12% | 15.2% | 0.8% | 13.4% | 35.3% | 27.3% | 13% | - |
| Adj EPS ⓘ | 17.2 | 24.7 | 30.7 | 36.9 | 46.5 | 39.7 | 58.9 | 87.9 | 120.4 | 126.2 | 126 |
| YoY Gr. | - | 43.4% | 24.4% | 20.1% | 26% | -14.7% | 48.4% | 49.3% | 37% | 4.8% | - |
| BVPS (₹) ⓘ | 45.5 | 61.9 | 89.6 | 118.6 | 151.4 | 175 | 217.1 | 257.1 | 334.9 | 399.9 | 459.2 |
| Adj Net Profit ⓘ | 107 | 154 | 191 | 230 | 290 | 247 | 367 | 547 | 750 | 786 | 785 |
| Cash Flow from Ops. ⓘ | 143 | 121 | 144 | 197 | 215 | 256 | 437 | 483 | 487 | 701 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 17.2% | 17.3% | 24.8% | 13% | ||||
| Adj EPS ⓘ | 24.8% | 22.1% | 28.9% | 4.8% | ||||
| BVPSⓘ | 27.3% | 21.5% | 22.6% | 19.4% | ||||
| Share Price | 26.7% | 51.1% | -8.2% | -15.6% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 41.4 | 46 | 40.6 | 35.5 | 34.5 | 24.3 | 30 | 37.1 | 40.7 | 34.2 | 29.3 |
| Op. Profit Mgn % ⓘ | 20.9 | 23 | 24 | 25 | 26.1 | 21.4 | 28.7 | 31 | 30.6 | 29.5 | 26.1 |
| Net Profit Mgn % ⓘ | 12.6 | 14.3 | 15.5 | 16.6 | 18.1 | 15.4 | 20.1 | 22.2 | 23.9 | 22.1 | 21.1 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 144 | 146 | 127 | 106 | 111 | 123 | 124 | 116 | 123 | 135 | 129 |
| Cash Conv. Cycle ⓘ | 31 | 31 | 44 | 57 | 60 | 71 | 74 | 71 | 80 | 87 | 104 |
Sales growth is growing at healthy rate in last 3 years 24.83%
Net Profit is growing at healthy rate in last 3 years 28.93%
Return on Equity has declined versus last 3 years average to 29.30%
Sales growth is not so good in last 4 quarters at 5.07%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 126 | 16.4 |
| TTM Sales (₹ Cr.) | 3,729 | 849 |
| BVPS (₹.) ⓘ | 459.2 | 0 |
| Reserves (₹ Cr.) ⓘ | 2,798 | 252 |
| P/BV ⓘ | 13.28 | 0.00 |
| PE ⓘ | 48.38 | 372.20 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 4601.05 / 9082.90 |
| All Time Low / High (₹) | 6.50 / 10760.40 |
| Market Cap (₹ Cr.) | 37,972 |
| Equity (₹ Cr.) | 62.3 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 30.2 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
|
Particulars |
Q1FY24 |
YoY Trend |
Comment |
|
Revenue |
850 |
17% |
Muted sequential growth of 1.5% due to slowdown in spending from North American and European markets |
|
EBITDA |
251 |
10% |
|
|
EBITDA Margin |
29.5% |
-190 bps |
|
|
PAT |
189 |
2% |
Impacted by higher tax expense |
Soft quarter with flat sequential margins. Demand revival expected in second half of FY24.
Results: Tata Elxsi reported 10.9% sales growth from previous quarter and 13% over same quarter previous year, operating profit (EBITDA) is up around 54% over previous year.
Key highlights:
System Integration & Support (SIS) segment which forms ~87% of the revenue mix grew 8.5% sequentially.
Transportation which forms 41% of the revenue mix grew by 6.9%. Broadcast & Communication which forms 44% of the revenue grew 7.3%.
Attrition rate marginally rose to 6.1% (from 6% in previous quarter).
The top client contributed 12% and top 10 formed 47% of the entire revenue.
Outlook: During the quarter, the company added a new age automotive OEM in North America, for software and vehicle electronics development. The sustained recovery is seen in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to resumption of projects as well as deals with Tier1 suppliers.
Tata Elxsi has a niche offering with focus on Engineering R&D (ER&D) unlike other IT services companies into IT infrastructure. Design, digitization and consulting of manufacturing and communication are its key segments. Automotive, Communication and Medical devices are its key customers who need design and consulting on products/operations.
Another company in same space is L&T Technology Services NSE:LTTS (Not to be mistaken for L&T Infotech).
We believe that these companies have different growth trajectories versus other IT services companies. Growth of ER&D companies is dependent on growth in R&D budgets of large corporates in US and EU.
Current prices have run up ahead of their earnings growth due to positive sentiment for IT services and other outsourcing companies which have relatively defensive nature of business. We await better price to buy into these companies.
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 849 | 1,075 | 1,237 | 1,386 | 1,597 | 1,610 | 1,826 | 2,471 | 3,145 | 3,552 |
| Operating Expenses ⓘ | 679 | 827 | 964 | 1,041 | 1,181 | 1,272 | 1,303 | 1,704 | 2,186 | 2,505 |
| Manufacturing Costs | 137 | 163 | 186 | 203 | 244 | 239 | 203 | 324 | 473 | 477 |
| Material Costs | 24 | 26 | 23 | 19 | 13 | 13 | 14 | 13 | 21 | 18 |
| Employee Cost | 461 | 576 | 666 | 749 | 843 | 951 | 1,025 | 1,288 | 1,598 | 1,910 |
| Other Costs ⓘ | 57 | 63 | 89 | 71 | 81 | 69 | 62 | 80 | 94 | 100 |
| Operating Profit ⓘ | 171 | 248 | 274 | 345 | 416 | 338 | 524 | 767 | 959 | 1,047 |
| Operating Profit Margin (%) | 20.1% | 23.0% | 22.1% | 24.9% | 26.1% | 21.0% | 28.7% | 31.0% | 30.5% | 29.5% |
| Other Income ⓘ | 10 | 12 | 18 | 45 | 43 | 65 | 40 | 45 | 77 | 122 |
| Interest ⓘ | 1 | 1 | 1 | 1 | 1 | 7 | 7 | 10 | 17 | 21 |
| Depreciation ⓘ | 25 | 23 | 27 | 25 | 25 | 43 | 44 | 55 | 81 | 99 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 156 | 236 | 264 | 364 | 433 | 352 | 512 | 745 | 938 | 1,049 |
| Tax ⓘ | 53 | 82 | 89 | 124 | 143 | 96 | 144 | 196 | 182 | 256 |
| Profit After Tax | 103 | 155 | 175 | 240 | 290 | 256 | 368 | 550 | 755 | 792 |
| PAT Margin (%) | 12.1% | 14.4% | 14.1% | 17.3% | 18.2% | 15.9% | 20.2% | 22.2% | 24.0% | 22.3% |
| Adjusted EPS (₹) | 16.5 | 24.9 | 28.1 | 38.5 | 46.6 | 41.1 | 59.1 | 88.3 | 121.3 | 127.2 |
| Dividend Payout Ratio (%) | 33% | 28% | 29% | 29% | 29% | 40% | 81% | 48% | 50% | 55% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 283 | 386 | 558 | 738 | 943 | 1,090 | 1,352 | 1,601 | 2,086 | 2,491 |
| Share Capital ⓘ | 31 | 31 | 31 | 62 | 62 | 62 | 62 | 62 | 62 | 62 |
| Reserves ⓘ | 252 | 355 | 527 | 676 | 880 | 1,028 | 1,290 | 1,539 | 2,023 | 2,428 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade Payables | 66 | 77 | 46 | 45 | 55 | 47 | 56 | 84 | 103 | 86 |
| Others Liabilities ⓘ | 240 | 336 | 108 | 157 | 139 | 243 | 298 | 475 | 562 | 587 |
| Total Liabilities ⓘ | 590 | 798 | 712 | 941 | 1,137 | 1,380 | 1,707 | 2,160 | 2,751 | 3,163 |
Fixed Assets | ||||||||||
| Gross Block | 229 | 260 | 130 | 146 | 178 | 248 | 296 | 460 | 582 | 684 |
| Accumulated Depreciation | 131 | 153 | 22 | 52 | 77 | 101 | 126 | 189 | 248 | 288 |
| Net Fixed Assetsⓘ | 98 | 107 | 108 | 94 | 101 | 147 | 170 | 272 | 334 | 396 |
| CWIP ⓘ | 3 | 2 | 1 | 2 | 0 | 1 | 7 | 22 | 7 | 2 |
| Investmentsⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventories | 0 | 0 | 0 | 0 | 2 | 2 | 0 | 1 | 0 | 1 |
| Trade Receivables | 154 | 215 | 245 | 307 | 357 | 392 | 489 | 673 | 976 | 972 |
Cash Equivalents  ⓘ
| 133 | 182 | 252 | 394 | 516 | 664 | 860 | 965 | 1,192 | 1,357 |
| Others Assetsⓘ | 201 | 292 | 107 | 143 | 162 | 174 | 181 | 228 | 242 | 435 |
| Total Assets ⓘ | 590 | 798 | 712 | 941 | 1,137 | 1,380 | 1,707 | 2,160 | 2,751 | 3,163 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 143 | 121 | 144 | 197 | 215 | 256 | 437 | 483 | 487 | 701 |
| PBT ⓘ | 156 | 236 | 175 | 364 | 433 | 352 | 512 | 745 | 938 | 1,049 |
| Adjustment ⓘ | 18 | 17 | 113 | 4 | 2 | 13 | 37 | 44 | 44 | 46 |
| Changes in Working Capital ⓘ | 9 | -57 | -47 | -57 | -77 | -20 | 12 | -100 | -310 | -135 |
| Tax Paid ⓘ | -39 | -76 | -96 | -114 | -143 | -90 | -124 | -206 | -185 | -258 |
| Cash Flow From Investing Activity ⓘ | -27 | -29 | 38 | -247 | -159 | 39 | -438 | -108 | -202 | -270 |
| Capex | -33 | -37 | -26 | -12 | -31 | -23 | -39 | -71 | -64 | -83 |
| Net Investments | 0 | 0 | 51 | -250 | -150 | 27 | -424 | -66 | -170 | -275 |
| Others ⓘ | 6 | 9 | 13 | 15 | 23 | 35 | 26 | 28 | 31 | 87 |
| Cash Flow From Financing Activityⓘ | -32 | -41 | -52 | -60 | -83 | -124 | -126 | -326 | -303 | -428 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 |
| Dividend Paid ⓘ | -28 | -34 | -52 | -60 | -83 | -101 | -103 | -299 | -265 | -377 |
| Others ⓘ | -4 | -7 | 0 | 0 | 0 | -22 | -24 | -27 | -38 | -50 |
| Net Cash Flow ⓘ | 85 | 51 | 129 | -110 | -26 | 171 | -127 | 49 | -18 | 3 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 39.72 | 46.28 | 37.06 | 37.04 | 34.5 | 25.2 | 30.15 | 37.23 | 40.97 | 34.62 |
| ROCE (%) | 60.46 | 70.84 | 56.19 | 56.28 | 51.68 | 35.35 | 42.5 | 51.2 | 51.8 | 46.6 |
| Asset Turnover Ratio | 1.6 | 1.55 | 1.64 | 1.68 | 1.54 | 1.28 | 1.18 | 1.28 | 1.28 | 1.2 |
| PAT to CFO Conversion(x) | 1.39 | 0.78 | 0.82 | 0.82 | 0.74 | 1 | 1.19 | 0.88 | 0.65 | 0.89 | Working Capital Days |
| Receivable Days | 67 | 63 | 68 | 73 | 76 | 85 | 88 | 86 | 96 | 100 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable Days | 972 | 990 | 958 | 869 | 1,372 | 1,477 | 1,371 | 2,029 | 1,613 | 1,958 |
Tata Elxsi, incorporated in 1989, is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications and Healthcare. Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.
Technology Services & Product Engineering: Tata Elxsi provides technology consulting, new product design, development, and testing services for the broadcast, consumer electronics, healthcare, telecom and transportation industries. It offer electronics, software development and system design services for the automotive and aerospace industry.
Design: Tata Elxsi creates innovative products, services and experiences to build brands and help businesses grow. By intersecting design and technology, it help clients globally to bring new ideas and products to market. Its services span across research and strategy, all the way up to Design, Visualisation - Augmented Reality and Virtual Reality, and is supported by a network of design studios, development centers and offices worldwide. It offer innovative, cost-effective and scalable solutions that enable brands to differentiate and win.
Systems Integration Services: Tata Elxsi implements and integrates complete systems and solutions for High-Performance Computing, CAD/ CAM/ CAE/ PLM, Broadcast, Virtual Reality, Storage, and Disaster Recovery. It also provide Professional Services for maintenance and support of IT infrastructure in India and overseas.
Business area of the company
Tata Elxsi provides technology consulting, new product design, development, and testing services for the broadcast, consumer electronics, healthcare, telecom and transportation industries.
Services
Solutions
Awards
2013
2014
2015
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2017-2018
2018-2019
2019-20
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