Tata Elxsi came out with its Q3 earnings. The company’s net profit increased 43.5 percent to Rs 151 crore in the December quarter of 2021. The company had registered a net profit of Rs 105.2 crore in the year-ago period. Its revenue from operations rose 33.2 percent to Rs 635.4 crore during the quarter under review from Rs 477.1 crore in the year-ago period.

The company delivered industry leading bottomline performance and crossed the Rs 200 crore profit before tax and Rs 150 crore profit after tax milestones for the first time in its history in Q3, the statement said. Meanwhile, Tata Elxsi’s constant currency (CC) revenue was up 6.5 percent on a quarter-on-quarter (QoQ) basis and 32.7 percent on a year-on-year (YoY) basis.

In an interview with CNBC-TV18, Manoj Raghavan, MD & CEO, Tata Elxsi, discussed the Q3 performance and the company's outlook.

Raghavan mentioned that the company has been consistently growing at 6-7 percent on a QoQ basis and there’s no reason why this trajectory will not continue. Infact, he is confident of ending FY22 on a good note.

"We have been consistently growing at 6-7 percent QoQ and I see no reason why we cannot continue that trend. So I'm pretty bullish on being able to end the financial year on a good note," he said.

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Going ahead, Raghavan expects to have a good margin performance. He said, "We are more than happy with the margin set that we are having currently and we would love to continue on this trajectory. But at the same time, we do have costs coming up, wage hikes coming up. But having said that, we are pretty confident that we will still continue to have a good margin performance."

Additionally, he mentioned that the company is continuing to win good deals. "We have been winning deals over the last five, six quarters. There is a good traction, we continue to win good deals. Definitely, a lot of the growth that we see is due to deep mining, increasing wallet share with the existing customers and overall deal size also is growing. So we are in a good position on that front," he mentioned.

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On the revenue front, he explained that JLR's contribution has come down from 25-26 percent to around 10 percent for the company.

"At one point of time, about 25-26 percent of our revenues used to come from JLR, we managed to bring it down to about 10 percent right now," he said.

Further, he mentioned that he wants revenue contribution from autos to be at 40 percent, media to be at 40 percent and healthcare at 20 percent over a three-year period.

"Auto is about 40-42 percent and from a company strategy perspective, we have been very clear that we don't want over dependence on any one sector. Because of over dependence, we've had issues in the past. So we are very clear that in a three-year timeframe, we would definitely want automotive to be about 40 percent, media and communication to be at 40 percent and medical to be at 20 percent," Raghavan explained.

Watch the video for full interview.

(With PTI inputs)

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(Edited by : Dipikka Ghosh)