The earnings season has thrown open numbers into the performances of companies over the past three months of the first quarter of the new fiscal year.
Tata Elxsi, Tata Group's design and technology services company, contributes across industries including broadcast, automotive, communications, healthcare, and transportation released its quarterly results yesterday, July 10.
Shares Slump Amid Low Profits
The results were not necessarily flattering, and the markets appear to have reacted to these developments with an equivalent amount of lack of enthusiasm.
The company show a dip in its profits after tax as it accrued a cumulative of Rs 184.1 crore in recently concluded quarter. Compare this to the previous or last quarter of FY24, when Tata Elxsi made Rs 196.9 crore in profit, exhibiting a decline of 6.50 per cent in overall profit after tax. |
The company's shares dropped over 1 per cent in the early hours of the day's trade on Thursday, July 11.
The company show a dip in its profits after tax as it accrued a cumulative of Rs 184.1 crore in the recently concluded quarter. Compare this to the previous or last quarter of FY24, when Tata Elxsi made Rs 196.9 crore in profit, exhibiting a decline of 6.50 per cent in overall profit after tax.
The company's earnings before interest, taxes, depreciation, and amortisation EBITDA stood at Rs 252.3 this quarter, compared to Rs 261.2 in the previous quarter, marking a decline of 3.4 per cent.
When it comes to revenue, it is to be noted that the total income garnered in Q1 FY25 stood at Rs 958.5 crore, compared to Rs 939.6 crore in the previous quarter. This meant a 2.01 per cent jump in the company's overall revenue.
Company's Attrition Rate Drops
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As the markets opened on a relatively stable note, Tata Elxsi shares steadily declined by 1.85 per cent or Rs 131.45, taking the overall value of each individual share below the coveted Rs 7K mark to Rs 6,988.00 (At 09:54 IST) |
When we look at the company's headcount, we see a decline in the attrition rate. Compared to the 12.4 per cent attrition rate of the last quarter of the previous fiscal year, the attrition rate for the April-June period stood at 12.3 per cent.
This number is far better than the 15.6 per cent from a year ago, in Q1 of FY24.
As the markets opened on a relatively stable note, Tata Elxsi shares steadily declined by 1.85 per cent or Rs 131.45, taking the overall value of each individual share below the coveted Rs 7K mark to Rs 6,988.00 (At 09:54 IST)
