Tata Elxsi reports modest revenue rise, profit hit by labour provision
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Tata Elxsi posted modest revenue growth but YTD profit fell sharply because of a large one‑time labour‑code provision.
- Q4 revenue rose 4.2% YoY to ₹99,375.12 lakhs, with the Software Development & Services segment contributing over 96% of sales.
- Net profit surged to ₹22,035.13 lakhs in Q4, yet YTD profit slipped 20% YoY to ₹62,843.03 lakhs after a ₹9,568.88 lakhs one‑time employee‑benefits charge.
- EPS fell to ₹100.89 YTD (down from ₹126.03), and the board recommended a ₹75 per share dividend, indicating confidence but tightening near‑term cash.
- Balance sheet stays robust: assets up 10.5% to ₹396,254 lakhs, equity now 77% of assets, and cash rose 44% to ₹19,452 lakhs, though operating cash flow fell to ₹66,398 lakhs.
- Investors should monitor Q1 2027 results for profit normalization once the labour‑code charge is cleared, while watching liquidity after the sizable dividend payout.
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