The company’s share price has been on the rise in recent months, thanks to strong performance by its parent company, Tata Motors.
Tata Motors reported a profit of Rs 944 crore (US$132 million) for the quarter ended December 31, 2019, on the back of robust demand for its vehicles in domestic and international markets.
This was the company’s highest quarterly profit in nearly three years.
Tata Elxsi’s share price has also been bolstered by strong earnings growth. For the quarter ended September 30, 2019, the company reported a profit of Rs 142 crore (US$20 million), up 42% from the same period a year ago. Revenue grew 14% to Rs 1,480 crore (US$210 million).
Analysts believe Tata Elxsi is well positioned to benefit from the growing demand for electric vehicles (EVs). The company has expertise in designing EV powertrains and battery management systems, and is working with several major automakers on EV projects.
With the Indian government pushing for EVs to comprise 15% of all vehicle sales by 2030, Tata Elxsi is expected to see strong growth in this segment going forward.
