Top Nifty Midcap Loser: Tata Stock Crashes Over 8% on Poor QoQ Profit Show

Shares of the leading design and technology services provider Tata Elxsi (NS: TTEX ) plunged over 8% on Monday and were last seen trading 8.1% lower at Rs 7,783.4 apiece after reporting its earnings results for the Sept ending quarter over the weekend.

The IT stock was the worst performer or top loser on the Nifty Midcap 100 index.

The Tata Group company’s profit figures declined on a sequential basis in the second quarter of FY23 despite reporting a good set of earnings results on a yearly basis.

Tata Elxsi’s net profit declined 5.65% to Rs 174.28 crore in the July-September quarter versus the preceding quarter and jumped 39.1% compared to the year-ago period.

Its PBT slipped 4% sequentially and surged 28.2% YoY to Rs 219.17 crore and EBITDA declined 5% QoQ and advanced 23.4% YoY to Rs 226.5 crore. The company’s EBITDA margin fell from 32.8% in Q1 and 30.8% in Q2 FY22 to 29.7% in Q2 FY23.

However, the revenue from operations rose 5.1% QoQ and 28.2% YoY to Rs 763.2 crore in the quarter under focus.

Tata Elxsi stated that its growth in the period was primarily volume led and all three of its segments showed robust growth sequentially - Embedded Product Design by 3.8%, Industrial Design and Visualization by 13.5%, and SIS by 26.2%.