The company also announced a final dividend of Rs 24 per share for the year 2020-21 along with a one-time special dividend of Rs 24 per share, subject to tax.
The company said growth was led by America and India with both reporting a 21.1 per cent QoQ growth while Europe grew by 1.6 per cent. Both transportation and media and communications reported another steady quarter of sustained growth while the healthcare business continues to grow faster. We have seen new customer additions and large deals in all three industry segments in the quarter, it said.
The company further said that it added key new customers including a Tier-1 operator and a leading medical devices manufacturer in North America. It also closed some large deals including a multi-million dollar deal with a global OEM for an integrated connected vehicle program in one of their key markets
that will leverage IoT platform.
HDFC Securities said its positive view on Tata Elxsi
is predicated on strong scalability in the business (>20 per cent CAGR over FY21-24E), superior execution framework, led by low cost of delivery (high offshoring, low attrition, low sub-con dependence), potent industry drivers (CASE, OTT & new media), IP deals and strong partnerships (Google Widevine) augmenting growth, improving growth visibility with pick-up in deal wins (including strong pipeline within large accounts) and investments to drive higher duration annuity deals, and stronger cash generation (70 per cent growth in OCF/FCF).
At 12:40 pm, the stock was trading 11 per cent higher at Rs 3,934 on the BSE, as compared to 0.18 per cent gain in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 640,000 equity shares changing hands on the BSE and NSE, so far.
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