Tata Elxsi Ltd Share Price – NSE  /  BSE

IT - Software, Small Cap

Nidec Corporation announced that it has executed a memorandum of understanding on 22 July 2024 with Tata Elxsi.

The execution of the aforementioned MOU aims to enable Nidec to utilize Tata Elxsi's knowhow and resources to accelerate Nidec's group-wide enhancement of its software development capability. Furthermore, the MOU intends for the Company to develop software programs for India and other markets, and examine how to localize Nidec products, while providing support for establishing and operating a global business base for the Nidec Group's software development in the future.

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The key equity barometers ended near the flatline with some negative bias on Thursday. The Nifty settled below the 24,350 mark. Oil & gas, media and FMCG stocks advanced while realty, pharma and auto shares declined. Trading was volatile due to weekly F&O series expiry today.

As per provisional closing, the barometer index, the S&P BSE Sensex, was down 27.43 points or 0.03% to 79,897.34. The Nifty 50 index lost 8.50 points or 0.03% to 24,315.95.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.34% and the S&P BSE Small-Cap index gained 0.57%.

The market breadth was positive. On the BSE, 2,178 shares rose and 1,733 shares fell. A total of 112 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.03% to 14.43.

Economy:

Union Commerce Minister Piyush Goyal stated that India is on track to become the world's third-largest economy within the next 3-4 years. Goyal highlighted the government's commitment to transforming India into a global manufacturing hub and achieving a $2 trillion export target by 2030. He emphasized that India's rapidly growing start-up ecosystem, expanding infrastructure, and investments in manufacturing are creating numerous opportunities for trade, business, jobs, and exports. The government is working to integrate India into global value chains and establish more global capacity centers to boost services exports. Goyal asserted that the $2 trillion export target is feasible with the right building blocks and a strong macroeconomic foundation.

The government is finalizing 'Jan Vishwas 2.0' to converge industry interests with national goals, decriminalize certain aspects, and reduce compliance burden. The government remains committed to calibrated reforms, expanding healthcare, providing basic amenities, and speeding up infrastructure development. With the right policies and industry collaboration, India is poised to achieve its ambitious economic goals in the coming years.

Buzzing Index:

The Nifty Realty index declined 1.49% to 1,109.90. The index shed 1.69% in two trading sessions.

Brigade Enterprises (down 3.59%), Macrotech Developers (down 3.56%), Phoenix Mills (down 1.65%), Prestige Estates Projects (down 1.2%), Mahindra Lifespace Developers (down 0.69%), Oberoi Realty (down 0.65%), Godrej Properties (down 0.65%), DLF (down 0.61%), Sobha (down 0.31%) declined.

On the other hand, Sunteck Realty (up 0.31%) edged higher.

Stocks in Spotlight:

Tata Elxsi slipped 2.12% after the company’s net profit declined 6.53% to 184.07 crore in Q1 FY25 as compared with Rs 196.93 crore posted in Q4 FY24. Revenue increased 2.26% to Rs 926.45 crore in quarter ended 30 June 2024 as compared with Rs 905.94 crore recorded in 31 March 2024.

Power Grid Corporation of India shed 0.69%. The company said that its board approved to borrow funds upto Rs 16,000 crore through various sources during the financial year 2025-2026.

HPL Electric & Power was locked in an upper circuit of 20% after the company announced that it has received work orders of Rs 2,100.71 crore from its regular leading customers.

GE Power India jumped 5.56% after the company’s board approved to sell its hydro business undertaking to GE Power Electronics and its Gas business to GE Renewable Energy Technologies through slump sale basis.

Oriana Power was locked in an upper circuit of 5% after the construction engineering firm received a new order for a 40 MWp solar power plant under the captive segment.

Rail Vikas Nigam (RVNL) added 2.66% after the civil construction firm received letter of acceptance (LoA) from Central Railway worth Rs 138.45 crore.

JTL Industries gained 2.99% after the company reported a 21% increase in consolidated net profit to Rs 30.70 crore in Q1 FY25 as compared with Rs 25.37 crore in Q1 FY24.

Global Markets:

European stocks advanced on Thursday, as global markets look ahead to the next U.S. inflation reading.

Asian stocks edged higher, fueled by tech gains and record highs in Japan, after chipmaker TSMC's strong revenue boosted optimism for AI. TSMC's record revenue in June, driven by surging AI demand, pushed its share price up nearly 2% in Taiwan.

The rally followed a surge on Wall Street overnight, where the S&P 500 and NASDAQ hit records on hopes of a soft economic landing and potential Fed rate cuts later this year. All eyes are now on upcoming consumer inflation data, which will heavily influence the Fed's decision on interest rates.

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Revenue increased 2.26% to Rs 926.45 crore in quarter ended 30 June 2024 as compared with Rs 905.94 crore recorded in 31 March 2024.

On year on year basis, the company’s net profit declined 2.53% from Rs 188.85 crore while revenue from operations increased 8.96% from Rs 850.27 crore in Q1 FY24.

Profit before tax (PBT) stood at Rs 252.39 crore in Q1 FY25 (up 1.63% YoY and down 3.81% QoQ).

EBITDA stood at Rs 252.3 crore in the quarter ended 30 June 2024 (up 0.3% YoY and down 3.4%). EBITDA margin contracted to 27.2% in Q1 FY25 from 28.8% in Q4 FY24 and 29.6% in Q1 FY24.

Transportation grew strongly at 5.3% QoQ CC (constant currency), aided by deal wins and ramp-up of Software Defined Vehicle (SDV) engagements.

Media and Communications rose 0.5% QoQ CC, performing creditably in a difficult environment for the media and telecom industry.

System Integration services grew strongly at 8.7% QoQ CC.

Manoj Raghavan, CEO and managing director, Tata Elxsi, said, “We executed very well on operational excellence and fiscal discipline in this quarter towards bottom-line performance, despite the impact of an exceptional one-off expense in the quarter and an increase in the effective tax rate with the change in SEZ benefits for one of our facilities.

Our Transportation business reported a strong growth of 5.3% QoQ and 20.3% YoY in constant currency, and now accounts for more than 50% of our Software Development & Services business. We believe we are well positioned to capture growth opportunities in the coming quarters as we continue to enable the continued transformation of the automotive industry and Software Defined Vehicles

Our Media & Communication business has done well in a difficult business environment for this industry, growing 0.9% QoQ in actual currency and 0.5% QoQ in constant currency. We are building on our strong customer relationships, even as we roll out innovative growth and efficiency offerings for this industry. I am especially delighted with the NEURON platform-led deal from a leading North American telecom operator for their network transformation.

Our Healthcare & Lifesciences business reported a decline in topline by 4.3% QoQ in constant currency. This is largely due to delay in renewals of some projects at one of our large customers. We continue to add marquee logos and some exciting start-ups to our customer base, laying the foundation for sustained long-term growth along with next-gen service offerings.

We are investing strongly in digital, AI and Gen AI technologies across our verticals, targeting efficiency and quality in product engineering, as well as novel applications of Gen AI combined with domain and design expertise to solve complex business, product and engineering problems. A great example is from our healthcare business where we have combined our depth of domain and product knowledge with Gen AI, to pioneer an innovative approach to sustainability and material replacement in medical devices and win a strategic deal with a leading manufacturer.”

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.

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The key benchmark indices traded with minor gains in early trade. The Nifty traded near the 24,350 mark. IT, metal and PSU bank shares advanced while FMCG, pharma and realty shares declined. Trading could be volatile due to weekly F&O series expiry today.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 79.53 points or 0.09% to 80,000.21. The Nifty 50 index rose 27.15 points or 0.11% to 24,351.60.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.43% and the S&P BSE Small-Cap index added 0.48%.

The market breadth was strong. On the BSE, 1,872 shares rose and 659 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 583.96 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,082.40 crore in the Indian equity market on 10 July 2024, provisional data showed.

Stocks in Spotlight:

Tata Elxsi declined 1.61%. The company’s revenue increased 2.3% YoY to Rs 926 crore in Q1 FY25. Net profit declined 6.5% to Rs 184 crore in Q1 FY24 from Rs 197 crore in Q1 FY224.

PTC Industries added 1.42% after the company announced that its board is scheduled to meet on Saturday, 13 July 2024, to consider a proposal for raising of funds, in one or more tranches.

Satin Creditcare Network gained 1.73% after the company received 15 million euros in debt funding from Austria's OeEB.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 0.01% to 6.977 as compared with previous close 6.976.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5075, compared with its close of 83.5150 during the previous trading session.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 104.94.

The United States 10-year bond yield added 0.31% to 4.291.

In the commodities market, Brent crude for September 2024 settlement added 65 cents or 0.76% to $85.73 a barrel.

Global Markets:

Asian stocks advanced on Thursday, fueled by tech gains and record highs in Japan, after chipmaker TSMC's strong revenue boosted optimism for AI. TSMC's record revenue in June, driven by surging AI demand, pushed its share price up nearly 2% in Taiwan.

The rally followed a surge on Wall Street overnight, where the S&P 500 and NASDAQ hit records on hopes of a soft economic landing and potential Fed rate cuts later this year. All eyes are now on upcoming consumer inflation data, which will heavily influence the Fed's decision on interest rates.

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