Tata Elxsi Ltd — Earnings Release 2021

Jan 12, 2021

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January 12, 2021

DGM - Corporate Relations Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 00 I

The Listing Department National Stock Exchange Exchange Plaza Plot o. C-1, Block G Bandra - Kurla Complex Bandra (East) Mumbai - 400 051

Dear Sir,

Sub : Tata Elxsi Earnings Presentation and Fact Sheet

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached a copy of the Tata Elxsi Q3 FY21 Earnings Presentation and Fact Sheet

The copy of the same is also available on the Company's website - www.tataelxsi.com

You are requested to please take the same on record and confirm.

Yours faithfully,

Tata Elxsi Limited

G. aidy eneral Cou se & Company Secretary

Encl: a/a

TATA ELXSl

Registered Office Tata Elxsi Limited ITPB Road Whitefield Bangalore 560 048 India Tel +91 802297 9123 Fax +91802841 1 474 www.tataelxs1.com

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Q3 FY21 Earnings Presentation and Fact Sheet

12 January 2021

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Disclaimer

This release may contain certain future prospects which may be a forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forwardlooking statements.

Note: All numbers have been rounded to the nearest digit for convenience of representation.

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Management commentary

“It was a pretty satisfying quarter with all-round growth across industries and geographies. We continue to execute strongly on both top line and bottom line, with double digit QoQ revenue growth and industry leading operating margins.

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Manoj Raghavan Managing Director and CEO

Our Healthcare business continues to accelerate, while Media and Communications reported another strong quarter of sustained growth.

We are seeing sustained recovery in the automotive market for the second consecutive quarter. This quarter has seen OEMs reinitiating key R&D programs, leading to resumption of projects as well as deals with Tier1 suppliers.

The growth in our design business has been equally satisfying. Customers are now recognizing the value of our integrated design and product engineering offerings to support innovation and enhanced customer experience, across verticals.

We are entering the fourth quarter and a new year with the reinforced confidence of a strong deal pipeline across markets and industries, and capabilities in product engineering, design and digital, that make our offerings more relevant and our market position stronger than ever before.”

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Financial Highlights

Revenue

• Revenues from operations at Rs. 477.1 Cr, +10.9% QoQ, +12.7% YoY

Profit

• Operating Margin at 30.1%; Net Margin at 21.4%

• Profit Before Tax (PBT) at Rs. 146.2 Cr, +32.9% QoQ, +43.2% YoY

• Profit After Tax (PAT) at Rs. 105.2 Cr, +33.3% QoQ, +39.5% YoY

Segment Highlights

• Embedded Product Design (EPD), the company’s largest division, grew by 9.3% QoQ, 14.5% YoY

• Industrial Design and Visualization (IDV) grew by 27.5% QoQ, 7.1% YoY

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Performance Highlights

Key Deal wins

• Tata Elxsi added a new age automotive OEM in North America, for software and vehicle electronics development.

• A leading European Tier1 automotive supplier awarded Tata Elxsi a multi-million USD deal for vehicle electronics and software.

• A leading US based OTT technology company selected Tata Elxsi’s FalconEye test automation solution.

• Tata Elxsi was selected by a North America headquartered medical device company, as a strategic supplier for regulatory compliance and development services.

• A selected Tata Elxsi for a multi-million USD research and leading global technology company design

• project.

• A leading North American Tier1 automotive supplier selected Tata Elxsi for a new program in autonomous driving technology.

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Financial Summary – Q3 & YTD FY21

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Total Income from
477.1 430.2 10.9% 423.4 12.7% 1,307.8 1,170.9 11.7%
operations
Other Income 15.1 4.4 20.5 32.9 45
Total Income 492.2 434.6 13.2% 444.0 10.9% 1,340.7 1,215.9 10.3%
EBITDA 143.6 118.1 21.6% 94.2 52.4% 354.4 234.4 51.2%
EBIT 132.6 106.9 24.0% 83.1 59.6% 321.3 201.8 59.2%
PBT 146.2 110.0 32.9% 102.1 43.2% 350.2 242.7 44.3%
PAT 105.2 78.9 33.3% 75.4 39.5% 252.9 174 45.3%
EBITDA 30.1% 27.4% 22.2% 27.1% 20.0%
EBIT 27.8% 24.8% 19.6% 24.6% 17.2%
PBT 29.7% 25.6% 24.1% 26.1% 20.7%
PAT 21.4% 18.3% 17.8% 18.9% 14.9%
Basic 16.9 12.7 12.1 40.6 27.9
Diluted 16.9 12.7 12.1 40.6 27.9
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Financial Performance – Q3 FY21

O p e r a t i n g R e v e n u e

O p e r a t i n g E B I T D A & M a r g i n ( % )

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477.1
10.9% QoQ
430.2
423.4 12.7% YoY
Q3 FY20 Q2 FY21 Q3 FY21
P B T & M a r g i n ( % )
29.7%
25.6%
24.1%
146.2 32.9% QoQ
110.0
102.1
43.2% YoY
Q3 FY20 Q2 FY21 Q3 FY21
INR in Crore
INR in Crore
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30.1%
27.4%
22.2%
143.6 21.6% QoQ
118.1
94.2
52.4% YoY
Q3 FY20 Q2 FY21 Q3 FY21
INR in Crore
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PAT & M a r g i n ( % )

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21.4%
18.3%
17.8%
33.3% QoQ
105.2
75.4 78.9
39.5% YoY
Q3 FY20 Q2 FY21 Q3 FY21
INR in Crore
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Operational Performance – Q3 FY21

	R e v e n u e B y S e g m e n t 86.9% 89.7% 88.3% 9.7% 8.0% 9.2% 3.3% 2.3% 2.4% Q3 FY20 Q2 FY21 Q3 FY21	S e g m e n t	C o n s t a n t C u r r e n c y G r o w t h	C o n s t a n t C u r r e n c y G r o w t h
			Q-o-Q	Y-o-Y
		Embedded Product Design (EPD)	8.5%	9.1%
		Industrial Design & Visualization (IDV)	25.3%	2.5%
		System Integration & Support (SIS)	16.1%	-19.0%
		Total (Tata Elxsi)	10.0%	7.5%

System Integration & Support (SIS)

Industrial Design & Visualization (IDV) Embedded Product Design (EPD)

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Operational Performance – Q3 FY21

R e v e n u e B y G e o g r a p h y

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12.3% 15.4% 14.4%
12.5%
12.1% 13.0%
RoW
33.6%
34.4% 36.0%
India
Americas
41.6%
38.1% 36.5%
Europe
Q3 FY20 Q2 FY21 Q3 FY21
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C l i e n t C o n c e n t r a t i o n

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50.8% 49.3%
47.2%
37.8% 36.6% 35.4%
Top 1
15.7% 13.0% 11.7% Top 5
Top 10
Q3 FY20 Q2 FY21 Q3 FY21
E m p l o y e e M e t r i c s
7000 9.0% 10.0%
6800 8.0%
6.0% 6.1%
6600 6.0%
Employees
6400 4.0%
Attrition (%)
6200 2.0%
6389 6639 6816
6000 0.0%
Q3 FY20 Q2 FY21 Q3 FY21
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EPD Operational Performance – Q3 FY21

	R e v e n u e B y I n d u s t r y 48.6% 41.5% 41.0% 39.2% 44.8% 44.3% 8.3% 9.1% 10.4% 3.9% 4.5% 4.3% Q3 FY20 Q2 FY21 Q3 FY21 Others Healthcare & Medical Devices Broadcast & Communications

Industry	Constant Currency Growth	Constant Currency Growth
	Q-o-Q	Y-o-Y
Transportation	6.9%	-8.4%
Broadcast & Communications	7.3%	24.3%
Healthcare & Medical Devices	23.5%	34.0%
Others	4.3%	20.1%
Total (EPD)	8.5%	9.1%

Transportation

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EPD Operational Performance – Q3 FY21

R e v e n u e B y O n s i t e / O f f s h o r e M i x

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34.7% 32.2%
40.3%
Onshore
65.3% 67.8% Offshore
59.7%
Q3 FY20 Q2 FY21 Q3 FY21
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R e v e n u e B y C o n t r a c t Ty p e M i x

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49.2%
57.9% 56.1%
Time &
Material
50.8%
42.1% 43.9% Fixed Price
Q3 FY20 Q2 FY21 Q3 FY21
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About us

Incorporated in 1989, Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Media, Communications and Healthcare. 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. We combine deep domain expertise with over 30 years of technology and product development experience, that enable brands to differentiate and win. 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.

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For further information, contact:

Hari Balan Corporate Communication E-mail: media@tataelxsi.com

Diwakar Pingle/Lokesh Pareek Christensen Investor Relations E-mail: dpingle@christensenir.com/ Lpareek@christensenir.com

www.tataelxsi.com

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