Tata elxsi

Highlights of the call by Capital Mkt
On sequential basis, Tata Elxsi registered 11% rise in its consolidated sales to Rs 269.66 crore for the quarter ended September 2015.OPM fell 30 basis points from 23.0% to 22.7% which saw OP rising 9% to Rs 61.28 crore.PBT rose 7% to Rs 58.31 crore.PAT rose 7% to Rs 38.10 crore.On y-o-y basis, sales jumped 31% and OPM rose 240 basis points from 20.3% to 22.7%. OP was up 47%. PBT grew 66% and PAT was up 61%.
Embedded product design (EPD) accounted for 80.9% of sales.Industrial design (ID) accounted for 12.3% of sales.System Integration accounted for 6.0% of sales.Visual computing Labs accounted for 0.80% of sales.For the six months ended September 2015, Tata Elxsi registered 28% rise in its consolidated sales to Rs 507.18 crore.OPM improved 240 basis points from 20.0% to 22.4% which saw OP rising 43% to Rs 113.60 crore.Other income jumped 191% Rs 210.28 crore.Other income includes Rs 4.3061 crore forex gain against a loss of Rs 39 lakh.PBT rose 71% to Rs 112.91 crore.PAT rose 66% to Rs 73.82 crore.
For the six months, Embedded product design (EPD) accounted for 80.5% of sales.Industrial design (ID) accounted for 11.9% of sales.System Integration accounted for 6.7% of sales.Visual computing Labs accounted for 0.90% of sales.On y-o-y basis, sales jumped 31% and OPM rose 240 basis points from 20.3% to 22.7%. OP was up 47%. PBT grew 66% and PAT was up 61%.
Of the increase in employee cost, around 85% rise is due to salary revision effected from July first. Rest was due to change in offshore/onsite mix and rise in head count.Current head count is 4500.For the six months ended September 2015, Tata Elxsi registered 28% rise in its consolidated sales to Rs 507.18 crore.OPM improved 240 basis points from 20.0% to 22.4% which saw OP rising 43% to Rs 113.60 crore.Other income includes Rs 4.3061 crore forex gain against a loss of Rs 39 lakh.PBT rose 71% to Rs 112.91 crore.PAT rose 66% to Rs 73.82 crore.The quarter was steady for EPD business. Main component for EPD business is transportation and broadcasting business.Transportation business saw good spread in customers and geographies. The company diversified revenue mix in this segment.Broadcast business saw good traction in OEM and tier I customers.Utilization rate little less than 75% during the quarter. So there is a little bit of head room, not too much.Margins won’t be very different in next few quarters.The company is seeing good opportunity in health care.The management does not see any cause for alarm regarding growth rates going forwards vis a vis current growth rates.