Tata Elxsi net profit up 83%, revenue dips 12%

BANGALORE: Tata Elxsi Limited recorded a net profit of Rs 2.88 crore for its first quarter ended June 30, 2002 compared to Rs 1.75 crore in Q1 2001 - a rise of 83 percent year-on-year. However the company’s revenue has dipped by 12 percent quarter-on-quarter, as the company posted revenue of Rs 24.7 crore, during the quarter ended June 30 2002, as against Rs 28.09 crore registered during the corresponding period last year.

As per the unaudited financial results released by the company, the net profit has increased despite the dip in the revenue, because of the 60 percent decrease in the consumption of raw materials by the company during the current year’s AMJ quarter, against a year ago. However, staff cost has increased by 24 percent for the company during its first quarter in 2002, eating up Rs 11.85 crore, in comparison to Rs 9.55 crore during the corresponding period, last fiscal.

"We have done very well in the first quarter of the current financial year, adding new businesses and customers to our portfolio. We are in the process of undertaking various strategic and market-focused initiatives to sustain our growth quarter-on-quarter", Tata Elxsi CEO Madhukar Dev.

With Design at the core of the business, Tata Elxsi is focused on the Product R&D outsourcing market space. The spectrum includes high technology product design in networking, semiconductors, consumer devices, storage and media, leadership in CAD/CAM and industrial design solutions for the Engineering, automobile and consumer products industries and content design in the animation space for the media and entertainment companies.

Tata Elxsi is a leading company to be assessed at SEI CMM Level 5 specifically for product design processes. The strong focus on design and processes, apart from adding innovation, facilitates in offering customers cost effective, time-to-market solutions that enable us to ensure maximum returns for all our stakeholders.