TATAELXSINSE23 January 2024

Tata Elxsi Limited has informed the Exchange about Investor Presentation

Tata Elxsi Limited

“We are happy to report a healthy performance in the third quarter with a top-line growth of 3.7% QoQ and 11.8% YoY in a challenging and weak quarter for the industry.

Our Healthcare & Lifesciences business executed strongly to report a growth of 4.6% QoQ and 13% YoY. This was backed by large deals in regulatory and digital health services.

Our Transportation business witnessed steady growth of 2.7% QoQ in a short quarter. While we had some delays in planned ramp-ups and deal closures due to the short quarter and holidays, we are positioned well to capture growth opportunities in the continued transformation of the automotive industry and Software Defined Vehicles.

Our Media & Communication business has done well in a deteriorated business environment for the media, telecom and technology industry, growing 0.6% QoQ and 3.4% YoY. We are staying close to our customers and building on both growth and efficiency offerings for customers in this industry.

Our Design-Digital strategy is continuing to drive differentiation and growth, with our Design business growing strongly at 12.3%. Our design teams have executed some landmark projects that spans user research, design and implementation to lead the way for our customers to transform consumer experience across industries. This also paves the path for capturing downstream value of technology implementation, as well as managed services for our systems integration business.

While we have continued to invest strongly in talent addition with over 350 Elxsians in this quarter and a net of 1,357 Elxsians over the past nine months, we have done well to maintain our EBITDA well over the 29% band. This underlines our strong focus on delivery and operational excellence, and our confidence in the future and long-term demand for our differentiated offerings.

As we step into the last quarter of this financial year, the confidence of our customers in our differentiated Design Digital proposition and delivery excellence, and a strong deal pipeline provides us the foundation for sustained growth.”

817.7

881.7

914.2

Q3'23

Q2'24

Q3'24

290.0 288.0 286.0 284.0 282.0 280.0 278.0 276.0 274.0 272.0 270.0 268.0 266.0 264.0 262.0 260.0 258.0 256.0 254.0 252.0 250.0 248.0 246.0 244.0 242.0 240.0

263.6

270.1

Q2'24

Q3'24

246.9

Q3'23

31.26

32.12

33.15

11,607

12,871

13,221

Q3'23

Q2'24

Q3'24

Q3'23

Q2'24

Q3'24

• Revenues from operations at Rs. 914.2 Cr, + 3.7% QoQ, + 11.8% YoY

• Operating revenue growth +3.0% QoQ and +9.4% YoY on constant currency

basis

• Operating Margin at 29.5%; Net Margin (PBT) at 28.9%

• Profit Before Tax (PBT) at Rs. 274.1 Cr, +14.2% YoY

• Profit After Tax (PAT) at Rs. 206.4 Cr, +6.0% YoY

• Transportation growth at 2.7% QoQ and 15.6% YoY, aided by large deals and

sustained traction in Software Defined Vehicles (SDV).

• Healthcare growth at 4.6% QoQ and 13.0% YoY, driven by new product

engineering and regulatory services.

• Media and Communications growth at 0.6% QoQ and 3.4% YoY amidst

deteriorated industry environment.

• Design Digital leads the way for Industrial Design business growth at 12.8%

QoQ, 25% YoY.

Asian Automotive OEM

Design Digital deal from a leading Automotive OEM for the development of a next-gen HMI for infotainment and in-cockpit interface for their next generation range of vehicles • Design-led approach from research to design strategy, HMI design and implementation • Modular design architecture to encompass EV and ICE portfolio

Leading Japanese Automotive Supplier

Tata Elxsi won a multi-year product engineering program for connected infotainment and digital cockpit from a leading automotive supplier.

North American Telecom Leader

Tata Elxsi won a product engineering consolidation large deal for a leading MSO. This leverages Tata Elxsi’s unmatched offshore execution capability, ability to drive outcomes and ownership, and leverages automation and AI to improve efficiencies and time to market.

Leading Multinational Medical Device Leader

A global medical devices leader has selected Tata Elxsi for global regulatory services that deliver enhanced efficiencies leveraging latest AI technology and algorithms to identify trends, potential risks and anomalies more effectively, thereby improving compliance and reducing overall spend.

Revenue from Operations

Other Income

Total Income

EBITDA

EBIT

PBT

PAT

EBITDA

EBIT

PBT

PAT

Basic

Diluted

914.2

34.9

949.2

270.1

244.7

274.1

206.4

29.5%

26.8%

28.9%

21.7%

33.15

33.14

881.7

31.1

912.8

263.6

238.5

263.9

200.0

29.9%

27.1%

28.9%

21.9%

32.12

32.12

3.7%

12.2%

4.0%

2.5%

2.6%

3.9%

3.2%

3.2%

3.2%

817.7

19.1

836.9

246.9

225.4

240.1

194.7

30.2%

27.6%

28.7%

23.3%

31.26

31.26

11.8%

82.5%

13.4%

9.4%

8.5%

14.2%

6.0%

6.0%

6.0%

817.7

881.7

914.2

290.0 288.0 286.0 284.0 282.0 280.0 278.0 276.0 274.0 272.0 270.0 268.0 266.0 264.0 262.0 260.0 258.0 256.0 254.0 252.0 250.0 248.0 246.0 244.0 242.0 240.0

Q3'23

Q2'24

Q3'24

340.0 338.0 336.0 334.0 332.0 330.0 328.0 326.0 324.0 322.0 320.0 318.0 316.0 314.0 312.0 310.0 308.0 306.0 304.0 302.0 300.0 298.0 296.0 294.0 292.0 290.0 288.0 286.0 284.0 282.0 280.0 278.0 276.0 274.0 272.0 270.0 268.0 266.0 264.0 262.0 260.0 258.0 256.0 254.0 252.0 250.0 248.0 246.0 244.0 242.0 240.0 238.0 236.0 234.0 232.0 230.0 228.0 226.0 224.0 222.0 220.0

28.7%

28.9%

263.9

240.1

28.9%

274.1

40.0% 230.0 228.0 226.0 224.0 222.0 220.0 218.0 30.0% 216.0 214.0 212.0 210.0 208.0 206.0 20.0% 204.0 202.0 200.0 198.0 196.0 194.0 192.0 190.0 188.0 186.0 184.0 182.0 180.0

10.0%

0.0%

30.2%

246.9

Q3'23

23.3%

194.7

29.9%

263.6

29.5%

270.1

Q2'24

Q3'24

21.9%

200.0

21.7%

206.4

32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Q3'23

Q2'24

Q3'24

Q3'23

Q2'24

Q3'24

40.0%

40.5%

38.4%

44.5%

43.8%

Q3'23

Q2'24

Q3'24

39.6%

37.4%

48.0%

53.2%

52.5%

15.5%

4.9%

Q2'24

16.4%

5.7%

Q3'24

India

Americas

Europe

Q3'23

Q2'24

Q3'24

34.7%

42.8%

16.2%

6.3%

Q3'23

RoW

11,607

11,864

12,286

12,871

13,221

18.4%

17.3%

15.6%

13.7%

12.9%

+11.7% CC QoQ

+17.9% CC YoY

+14.6% CC QoQ

+20.0% CC YoY

+3.9% CC QoQ

+11.2% CC YoY

+1.9% CC QoQ

+12.9% CC YoY

+1.5% CC QoQ

+8.0% CC YoY

-0.1% CC QoQ

+1.3% CC YoY

24.6%

25.8%

25.3%

50.1%

50.3%

50.0%

75.4%

74.2%

74.7%

49.9%

49.7%

50.0%

Q3'23

Q2'24

Q3'24

Q3'23

Q2'24

Q3'24

Onsite

Offshore

Fixed Price

Time & Material

Tata Elxsi and Tata Motors jointly won the esteemed German Design Award 2024 for the Tata Motors Gen 3 HMI design.

Key features of the Tata Motors Gen 3 HMI include:

• User-Centred Design: Prioritising usability and

intuitive

interactions for a seamless driving experience.

• Elevated Driving Experience: Enhancing convenience and enjoyment with intuitive immersive interfaces and seamless controls, and developing innovative engineering designs, including Advanced Driver Assistance Systems (ADAS).

• Thematic Experience: Personalised driving

interfaces

catering to individual drivers' preferences.

• Driver's Focus: Ensuring driver concentration and safety

with user-friendly controls and reduced distractions.

The Gen 3 HMI has been introduced in the new range of SUVs including the latest generation of Harrier, Safari, and Nexon.

Tata Elxsi’s NEURON Autonomous Network Platform won Product of the Year award at the Industry DevOps Awards 2023 awards event in London.

NEURON empowers operators to effectively deploy and operate the world's largest 4G / 5G networks while embracing the transformative power of automation and Artificial Intelligence (AI). By leveraging this ground- breaking solution, operators can significantly lower operational costs and deliver seamless, high-quality services at speed to their customers.

NEURON further supports operators in Private 5G deployments, facilitating the seamless delivery of use cases across various industries, including Connected and Software Defined Vehicles, Connected Healthcare, Smart Cities, and Smart Factories.

The NEURON Autonomous Network Platform has been successfully deployed globally in multiple data centers, 10,000+ VNFs / CNFs serving millions of subscribers.

The Future of Business Intent Driven Networks

The Value Creator Awards 2023 honours and that are recognises torchbearers of long-term value creation within their sectors for shareholders and stakeholders.

Indian companies

leading

This award is a recognition of Tata Elxsi’s leadership in fostering a culture of innovation across our verticals, underscoring how design and technology when brought together, can fuel end-consumer delight and deliver positive impact and growth for the global brands we work for and for the company and shareholders as well.

Tata Elxsi was recognized as a Top 50 Innovative Company of the Year in the CII Industrial Innovation Awards 2023.

The CII Industrial Innovation Awards is regarded as one of the most prestigious innovation awards in the country that recognises and honours innovative Indian businesses across all industry segments and sectors and is known nationally and internationally for their innovative products and services.

Tata Elxsi was specially commended for innovations in futuristic technology areas as Industry 4.0, AI Accelerators and Robotics in Healthcare.

Tata Elxsi signed a MoU for the joint development of an Automotive Cyber Security Solution together with the Indian Institute of Science (IISc).

This collaboration will focus on security and threat detection in connected automotive vehicles, using AI & ML-based intrusion detection. A modern car easily has upwards of 3000 chips sensing and controlling the car’s operation. The design complexity associated with enabling safe in-vehicle networking is enormous. This partnership brings together IISc’s strengths in cyber-physical systems security and Tata Elxsi’s strengths in AI, SDV and automotive domain expertise to enable safe, secure, and connected mobility.

The partnership will also work to prevent and detect threats and anomalies with potential security preventive insights on future and potentially more advanced threats in the system.

India Mobile Congress (IMC) is Asia's most significant technology event and the premier networking opportunity in India's tech sphere.

IMC 2023 brings together innovators, industry giants, future of and tech enthusiasts to shape the technology.

With an immersive showcase of innovative solutions, Tata Elxsi shared fresh insights into AI-enabled Smart Networks and Smart Applications.

October 27-29, Pragati Maidan, New Delhi 2023

Incorporated in 1989, Tata Elxsi is amongst the world’s leading providers of design

and technology services across industries including Transportation, Media,

Communications and Healthcare & Medical Devices.

Tata Elxsi provides integrated services – from research and strategy, to electronics

and mechanical design, software development, validation and deployment, and is

supported by a network of design studios, global development centers and offices

worldwide. 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.

We combine deep domain expertise with over 30 years of technology and product

development experience, that enables brands to differentiate and win.

Discover more at www.tataelxsi.com

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