InCred Equities - Tata Elxsi Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	35,521	37,290	39,244	44,170
Operating EBITDA (Rsm)	10,464	9,729	10,800	12,635
Net Profit (Rsm)	7,922	7,850	8,283	9,718
Core EPS (Rs)	127.2	126.0	133.0	156.0
Core EPS Growth	4.9%	(0.9%)	5.5%	17.3%
FD Core P/E (x)	50.88	51.36	48.67	41.49
DPS (Rs)	70.0	75.0	95.0	115.0
Dividend Yield	1.08%	1.16%	1.47%	1.78%
EV/EBITDA (x)	37.17	39.76	35.60	30.24
P/FCFE (x)	65.21	55.00	55.82	48.50
Net Gearing	(56.4%)	(57.2%)	(60.5%)	(63.0%)
P/BV (x)	16.09	14.10	13.02	12.03
ROE	34.5%	29.3%	27.8%	30.1%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	35,521	37,290	39,244	44,170
Gross Profit	14,492	14,429	15,501	17,724
Operating EBITDA	10,464	9,729	10,800	12,635
Depreciation And Amortisation	(994)	(1,049)	(1,060)	(1,148)
Operating EBIT	9,470	8,681	9,740	11,487
Financial Income/(Expense)	1,017	1,603	1,087	1,217
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	10,487	10,284	10,828	12,703
Exceptional Items
Pre-tax Profit	10,487	10,284	10,828	12,703
Taxation	(2,564)	(2,434)	(2,544)	(2,985)
Exceptional Income - post-tax
Profit After Tax	7,922	7,850	8,283	9,718
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	7,922	7,850	8,283	9,718
Recurring Net Profit	7,922	7,850	8,283	9,718
Fully Diluted Recurring Net Profit	7,922	7,850	8,283	9,718

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	10,464	9,729	10,800	12,635
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,351)	(242)	(869)	(1,174)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	193	244
Other Operating Cashflow	(445)
Net Interest (Paid)/Received	731
Tax Paid	(2,580)	(2,239)	(2,544)	(2,985)
Cashflow From Operations	7,012	7,492	7,387	8,476
Capex	(830)	(162)	(163)	(163)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(1,871)	(2,921)	1,275	1,405
Cash Flow From Investing	(2,701)	(3,083)	1,112	1,241
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(3,774)	(4,359)	(5,918)	(7,163)
Preferred Dividends
Other Financing Cashflow	(504)	(627)	(188)	(188)
Cash Flow From Financing	(4,278)	(4,986)	(6,106)	(7,351)
Total Cash Generated	32	(577)	2,393	2,365
Free Cashflow To Equity	6,182	7,330	7,223	8,312
Free Cashflow To Firm	4,513	4,409	8,499	9,717

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	14,139	16,345	18,737	21,103
Total Debtors	9,716	9,715	10,644	11,980
Inventories	11
Total Other Current Assets	1,502	1,915	1,915	1,915
Total Current Assets	25,367	27,975	31,297	34,998
Fixed Assets	3,847	3,108	2,212	1,227
Total Investments	1,943	3,964	3,964	3,964
Intangible Assets	134	88	88	88
Total Other Non-Current Assets	578	722	722	722
Total Non-current Assets	6,503	7,882	6,986	6,001
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	856	1,230	1,290	1,452
Other Current Liabilities	3,603	4,067	4,067	4,067
Total Current Liabilities	4,459	5,297	5,357	5,519
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	1,812	1,393	1,393	1,393
Total Non-current Liabilities	1,812	1,393	1,393	1,393
Total Provisions	542	568	568	568
Total Liabilities	6,813	7,257	7,318	7,480
Shareholders Equity	25,057	28,600	30,965	33,520
Minority Interests
Total Equity	25,057	28,600	30,965	33,520

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	13.0%	5.0%	5.2%	12.6%
Operating EBITDA Growth	8.9%	(7.0%)	11.0%	17.0%
Operating EBITDA Margin	29.5%	26.1%	27.5%	28.6%
Net Cash Per Share (Rs)	227.03	262.42	300.84	338.82
BVPS (Rs)	402.34	459.18	497.16	538.18
Gross Interest Cover	46.75	45.73	51.81	61.10
Effective Tax Rate	24.5%	23.7%	23.5%	23.5%
Net Dividend Payout Ratio	55.0%	59.5%	71.4%	73.7%
Accounts Receivables Days	100.08	95.10	94.68	93.48
Inventory Days	0.13	0.09
Accounts Payables Days	16.39	16.66	19.37	18.92
ROIC (%)	73.2%	58.5%	72.7%	85.9%
ROCE (%)	31.2%	24.7%	25.0%	27.3%
Return On Average Assets	24.0%	19.6%	20.1%	22.2%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 22 4161 1544 vikas.swami@incredresearch.com

Market Data

Source: Bloomberg