Qualcomm’s Snapdragon collaborates with Tata Group Stock
Tata Elxsi and Qualcomm Integrate RDK-B with 5G FWA Gen 3 Platform
September 24, 2024: Tata Elxsi, a global leader in design and technology services, has announced a significant milestone in broadband innovation by successfully integrating the RDK-B software stack with Qualcomm’s 5G Fixed Wireless Access (FWA) Gen 3 platform. This first-of-its-kind integration allows operators to deliver fast, reliable, and scalable broadband services with enhanced versatility for both indoor and outdoor deployments.
Advanced Capabilities for Operators
This integration blends the power of the RDK-B middleware with Qualcomm’s Snapdragon® X75 Modem-RF System, enabling telecom operators to provide cutting-edge broadband solutions. Key features include Wi-Fi 6 support, advanced security, and packet statistics, ensuring operators can offer value-added services like Quality of Service (QoS), parental controls, and VPNs. These features enhance the overall user experience, making broadband services more efficient and reliable.
Looking Ahead: Wi-Fi 7 and Beyond
Tata Elxsi plans to upgrade the platform to include Wi-Fi 7, offering operators more flexible, scalable, and cost-effective solutions, paving the way for the next generation of wireless innovation.
Highlights from Concall Q1FY25:
Tata Elxsi aims to have 25% of its workforce AI-ready by the end of Q3 FY25E, reflecting its focus on emerging technologies and future-proofing its talent pool. The company's client base continues to grow, with the top five clients contributing over 47.2% of its revenue, and the top 10 clients now accounting for 58% of its business.
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Looking ahead, Tata Elxsi projects a robust financial performance, with revenue expected to grow at a 13.9% CAGR between FY24 and FY26E, while PAT is forecasted to achieve a 13% CAGR over the same period.
Valuation and View on Q1FY25:
Tata Elxsi's profitability came in lower than expected, with margins shrinking by over 200 basis points YoY. While the media and communication segment saw slight QoQ growth, the healthcare segment experienced a second consecutive quarterly decline in revenue. Additionally, the effective tax rate for FY25E is expected to increase due to changes in SEZ benefits impacting one of its facilities.
Disclaimer: The article is for informational purposes only and not investment advice.