Thread by @ValueEducator

#Tataelxsi Q3 2022 Concall Highlights

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Numbers -

1. In Q3 the revenue was a ₹635.4 Cr up by 6.7% QoQ and 33.2% YoY
2. The PBT is up by 17.1% QoQ and 36.9% YoY stood at ₹203 Cr
3. The net profit was ₹151 cr up by 20.4% QoQ and 43.5% YoY

4. Embedded Product Design (EPD) grew by 9.6% QoQ and 35.4% YoY
5. Transportation business grew by 9.7% QoQ and 30.9% YoY

Business Updates-

1. In Q2, 500 freshers engineers were added and 150 fresh engineers were hired in Q3.

Company plans to hire more freshers in the coming 3 quarters.

2. The company is looking for multi-year deals with better margins to improve the quality of the earnings and also to provide more value to the customers.

3. The utilisation of the business is at an all time high at 83%.
4. The margins in healthcare are higher followed by media communication and then automotive.

5. The maximum automobile deals Tata Elxsi is winning is towards more connected cars, cyber security and towards the newer digital trends.

6.The industrial Design & Visualization (IDV) segment can grow at 60% - 70% YoY. They are also building good sets of customers in this segment.

7. Company at times gets EPD and IDV combined deals, the capabilities in IDV also helps to win deals in the EPD segment.

8. The management says that the demand for ER&D is the fastest growing compared to IT and Infrastructure.

9. In areas of ADTech and EV the company might announce a combined partnership with other players where the solutions will be built together

and the product will be brought to the market together.

10. Average deal length in EV side 12 - 18 months and 24 months for few deals.

Guidance-

1. The company to deliver better than industry level margins and the focus is on quality of the earnings.

2. The long term road map for the company is 40:40:20 split between Automotive, Media and Communication and Healthcare respectively.

3. Increasing sophistication in the cars will drive the growth of the company, also the changes that are happening these days are more towards the software rather than the mechanical side.