Tata Elxsi: Sentiments defy weak Q4 and bearish calls by brokerages

Tata Elxsi reported weak results for the fourth quarter of the financial year 2024-25 (FY25) and many analysts were also negative on the stock.

- DEVANGSHU DATTA

But the share surged by over 9 per cent post the results (announced on Thursday post market hours) to close at ₹5,344.55 on the BSE on Monday. This might be due to low expectations and potentially attractive valuations after a 30 per cent correction over the last 12 months.

There was a sequential revenue decline in large verticals, across regions and clients. However, the company announced a $100 million deal and a Euro 50 million deal in media and communications and transportation verticals, respectively. This may offset some macro uncertainty.

There was a revenue decline of 5.3 per cent quarter-on-quarter (Q-o-Q) at $105 million. Year-on-year (Y-o-Y) basis, it was down 2.9 per cent. Transport (down 9.7 per cent Q-o-Q) was hard hit, while media and communications too was down 6.3 per cent Q-o-Q. The healthcare and medical devices vertical grew 3.5 per cent.

In Y-o-Y terms, revenue growth was 3.1 per cent in constant currency, led by transportation, up 11.8 per cent Y-o-Y, while media and communications was down 5.5 per cent Y-o-Y and healthcare and life sciences vertical down 4 per cent Y-o-Y.