Tata Elxsi
Tata Group’s software development firm for embedded product design, animation and visual effects posted a good performance for Q1FY16.
On a year on year basis, revenue for first quarter ended 30th June 2015 rose 28% to Rs. 244 crore, while operating profit jumped 64% to Rs. 47 crore. Sequentially too, company performed much better with revenues increasing by 5% QoQ and operating profits by 2%. Exchange gains of Rs. 3.9 crore in Q1FY15 as against loss of Rs. 4.2 crore in Q4FY15, helped net profit jump nearly 20% QoQ to Rs. 35.7 crore, leading to EPS of Rs. 11.47, vis-à-vis EPS of Rs. 32.76 for FY15. Company has strengthened net margins to 14.7% in the quarter gone by, from 12% in FY15.
Company has surplus cash per share of Rs. 43 on its books, as of 31-3-15. Annualised the first quarter results, leads to EPS of almost Rs. 46 for FY15, which discounts the Tata group company by a PE multiple of approximately 30 times, net of cash on hand. This has been a fundamentally sound company, reporting consistency in its financial workings.