Tata Elxsi shares in focus: Q4 profit falls 13%, Rs 75 final dividend announced

Shares of Tata Elxsi are in focus today as  ITR firm announced its Q4 earnings last week. Tata Elxsi reported a 13.4% quarter-on-quarter decline in net profit, amounting to ₹172.4 crore for the fourth quarter of FY25, down from ₹199 crore in the previous quarter. This decrease is attributed to ongoing challenges in its primary transportation segment, which is experiencing difficulties due to global trade and geopolitical tensions. The board recommended a final dividend of Rs 75 per equity share (750%) for FY25, subject to shareholder approval at the upcoming Annual General Meeting.

In the previous session, the stock opened lower ahead of Q4 earnings. Total 0.34 lakh shares of the firm changed hands amounting to a turnover of Rs 16.50 crore on BSE. Market cap of the firm stood at Rs 30,517 crore. Later, the stock closed at Rs 4899 down 0.62% on BSE. 

Revenue from operations also decreased by 3.3% to ₹908.3 crore, compared to ₹939.2 crore in Q3 FY25. Despite these setbacks, the company's board has proposed a final dividend of ₹75 per equity share for FY25, contingent on shareholder approval at the upcoming Annual General Meeting.

The company's transportation segment, responsible for 53% of its software services revenue, saw a nearly 10% sequential decline, alongside pressures from geopolitical and market uncertainties. Tata Elxsi CEO, Manoj Raghavan, mentioned that while the automotive sector faced setbacks, the Healthcare & Life Sciences segment showed robust growth. He highlighted a strategic, multi-year agreement worth €50 million with a European automotive original equipment manufacturer (OEM), expected to commence from the June quarter, as a positive development amidst these challenges.

Tata Elxsi concluded FY25 with a workforce of 12,414, a reduction of 985 employees year-on-year. However, the company continues to invest heavily in digital technologies, including AI and generative AI, which now encompass over 70% of its talent base.

"Over 70% of our talent base is now AI-ready, and we have built a pool of over 500 specialists across domains and application areas," Raghavan noted. "We enter the new financial year with a strong foundation for stability and long-term growth, supported by large deal wins, continued customer confidence, a robust deal pipeline, and our differentiated, design-led proposition for innovation and product engineering."