TATAINVEST Q2 FY24 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹124 Cr
verified against source
Revenue YoY
10.1%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tata Elxsi reported INR 881.7 crore in Q2 FY24 revenue, up 10.1% YoY in constant currency, with 3.5% QoQ growth driven by strong automotive performance (+6.9% QoQ). EBITDA margin held near 30% at 29.9%, defying headwinds from wage hikes (160bps impact) and ESOP costs (50bps) totaling 210bps—offset by contractor rationalization (120bps savings), opex optimization, and normalized lab setup costs (120bps). The company won a landmark multi-year SDV deal with a global automotive OEM after 18-24 months of pursuit, validating its software-defined vehicle capabilities. Healthcare grew 3.2% QoQ while media/comms remained flat with expected H2 recovery. Industrial design crossed INR 100 crore quarterly milestone for the first time. Management guides for continued hiring (similar Q3 run rate) and targets margin stability through pyramid optimization and utilization levers. Key risks include prolonged geopolitical volatility potentially impacting discretionary spending, UAW strike uncertainty in auto, and media vertical recovery timing remaining uncertain.
Colored figures show movement against the previous available record.
Guidance to track
- Management aims to improve H2 performance over H1, though no specific numbers are provided. Focus on converting automotive deal pipeline and media recovery.
- Headcount additions expected to continue at similar run rate (approximately 500-600 net adds per quarter) through H2.
- Targeting approximately INR 500 crore annually from industrial design business within next year, up from INR 100 crore quarterly run rate.
Risks flagged
- Analyst directly asked about UAW strike impact; management gave evasive response citing inability to differentiate between UAW-related delays and general macro slowdowns.
- Despite mentioning 'green shoots' in customer conversations, management remained 'conservative' on H2 recovery for media vertical, citing extended decision cycles and pipeline uncertainty.
- Israel conflict situation being monitored; while current exposure is minimal, management acknowledged potential indirect impacts through fuel prices, currency fluctuations, and customer sentiment if situation escalates.
Key quotes
- This was a pretty significant win for us. It's a new customer that we have been pursuing for I think 18-24 months. It's been a long pursuit, and very happy to inform that we've been able to close the deal in our favor. And it's a multi-year deal and a multi-million-dollar large deal in our perspective.
- Our focus would be to look at growing the top 10 and the top 20 customers... as we grow, definitely the top 5 and top 10 percentages will come down relatively.
- We're in for a cycle where there are going to be 3-4 pivots of the architectures for cars as you talk of SDV. There is no one single ideal architecture, and the question only is about how fast do you get there.
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