*Tata Elxsi Q4FY22 First Cut*
[Dalal & Broacha Research]
*CMP:* INR 7,808
*Target:* INR 7,107 (Old Target)
*Market Cap:* INR 48,626 Cr
*Tata Elxsi continued to report a healthy set of numbers which were largely in line with our estimates across the board*
• *INR revenue came in at INR 6,817 Mn*, +7.3% qoq / +31.5% yoy and +0.8% above our estimates
• *EBITDA was reported at INR 2,212 Mn*, +4.9% qoq / +31.7% yoy and -1.2% below our estimates
• *EBITDA margins stood at 32.5%*, vs 33.2% / 32.4% in Q3FY22 / Q4FY21 respectively and 60 bps below estimates.
• *PAT came in at INR 1,600 Mn*, +6% qoq / +38.9% yoy and -0.3% below our estimates
• *EPS at INR 25.7* in Q4FY22 vs 24.2 / 18.5 in Q3FY22 / Q4FY21 respectively
• *Industry-wise* Growth was led by Transportation at 8.3% qoq / 38.6% yoy, followed by Media & Comms at 7.2% qoq / 31.6% yoy
• *Services-wise*: Sequential Growth was driven by Industrial Design & Visualization (9% of revenue) at 8.7% qoq / -10.1% yoy. EPD (89% of revenue) grew +7.6% qoq / 38.4% yoy.
• Board recommended a final dividend of INR 42.5 per share
*Valuation & Outlook*
Tata Elxsi is trading at 66.4x / 59.4x our FY23e / FY24e EPS estimates. We had a target price of INR 7,107 on the stock. However, we will review the target price post conference call tomorrow at 3 pm.
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