Q1FY20 Results: Tata Elxsi posts weak numbers

Tata Elxsi Limited reported results for the quarter ended June 30, 2019 on Wednesday during market hours. The company's standalone revenue for Q1FY20 came in at Rs. 361.71 crore as against Rs. 382.03 crore in the corresponding quarter last year, registering 5.3 per cent yoy decline.

The EBITDA for the quarter fell by 34.4 per cent yoy to Rs. 69.85 crore as against Rs. 106.52 crore in the corresponding quarter last year, with a corresponding margin contraction of 857 bps. EBITDA margin for the quarter stood at 19.3 per cent.

Due to the adoption of AS 116 ‘Leases’, the nature of expenses in respect of operating leases has changed from lease rent in previous periods to depreciation cost for the right-to-use asset and finance cost for interest accrued on the lease liability. Also, the employee benefit expenses during the quarter increased by 10.8 per cent yoy. All this has led to decline in EBITDA.

The PAT for the quarter came in at Rs. 48.79 crore as against Rs. 70.49 crore in the corresponding quarter last year, yoy decline of 30.8 per cent.

Reacting to this result, the stock of Tata Elxsi dipped by 6.5 per cent hitting 52-week low of Rs 761.40 per share from the previous close of Rs. 814.95.