The design led technology service provider reported a 29% rise in net profit to Rs 194.68 crore on 28.7% increase in revenue from operations to Rs 817.74 crore in Q3 FY23 over Q3 FY22.  

The company's net profit rose 11.71% while revenue from operations grew 7.15%, respectively, over Q2 FY23 (QoQ). Profit before tax (PBT) stood at Rs 240.10 crore, registering a growth of 9.55% QoQ and 20% YoY. 

EBITDA stood at Rs 246.9 crore in the quarter ended 31 December 2022 (up 9% QoQ and up 30.4% YoY). EBITDA margin was at 30.2% in Q3 FY23 as compared to 29.7% in Q2 FY23 and 33.2% posted in Q3 FY22. 

The company said that all three segments of Embedded Product Design (EPD), Industrial Design and Visualization (IDV) and SIS delivered robust growth of 5.1%, 25.5% and 9.3% QoQ respectively. 

The company's total headcount at the end of the December 2022 stood at 11,607. The company's Last Twelve Months (LTM) attrition rate stood at 18.4% in Q3 FY23 as compared to 18.7% in Q2 FY23 and 18.2% in Q3 FY22. 

Transportation witnessed stellar growth of 12% QoQ and 33.2% YoY, aided by large deals and market share gains in EV, Software Defined Vehicles and adjacencies. Healthcare jumped 28.4% YoY, driven by new product engineering, digital health and regulatory services. 

Media and Communications grew 14.7% YoY in a challenging quarter for the industry, aided by new wins in Android TV and AdTech, and platform-led deals with operators. 

Among regions, Europe delivered strong growth of 8.9% QoQ, followed with US at 6.3% QoQ. 

Manoj Raghavan, CEO and managing director of Tata Elxsi, said, 
We have delivered a quarter of steady growth in a seasonally weak and challenging quarter for the technology industry and macro-economic uncertainty in our key markets. We are seeing strong and sustained growth in the Automotive and adjacent segments in Transportation, led by our differentiated EV and digital capabilities. We won multi-year deals in EV and Software Defined Vehicle architectures in the automotive space, and a strategic entry into a global OEM software organization. 

Both our Healthcare and Media & telecom business saw some impact of delayed decision-making, furloughs and a short quarter. We have done well to protect our business and position ourselves strongly for upcoming strategic deals. Our Design business continues to win Design Digital deals for the company across our key verticals. It is seeding opportunities for larger development projects and next-generation digital applications, including AR/VR and AI enabled entertainment experiences. 

For us, this has been a quarter of focusing on positioning ourselves strongly for the future with our unique design-led capabilities, scaling across our customer base, and harnessing the exceptional investments in employee additions we have made in the last quarter and before. 

The attrition rate declined for the third consecutive quarter, even as we continue to invest in bringing in the right expertise to deliver exceptional outcomes for our customers. This is helping us accelerate growth in the increasing number of strategic accounts and new offerings we are bringing to market. We have also invested in establishing a digital engineering center in Frankfurt, to support our growth in Germany and Europe. We are entering the last quarter of the financial year with a strong order book and a healthy deal pipeline across key markets and industries, and a differentiated Design Digital positioning. 

Tata Elxsi is amongst the world's leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation. 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.