InCred Equities - Tata Elxsi Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	37,290	37,457	41,969	47,156
Operating EBITDA (Rsm)	9,729	8,417	10,672	12,604
Net Profit (Rsm)	7,850	6,635	8,434	9,882
Core EPS (Rs)	126.0	106.5	135.4	158.7
Core EPS Growth	(0.9%)	(15.5%)	27.1%	17.2%
FD Core P/E (x)	45.40	53.71	42.25	36.06
DPS (Rs)	75.0	95.0	115.0	115.0
Dividend Yield	1.31%	1.66%	2.01%	2.01%
EV/EBITDA (x)	34.94	40.26	31.65	26.60
P/FCFE (x)	44.78	64.08	53.81	45.05
Net Gearing	(57.2%)	(59.6%)	(60.8%)	(63.5%)
P/BV (x)	12.46	12.16	11.65	10.70
ROE	29.3%	22.9%	28.2%	30.9%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	37,290	37,457	41,969	47,156
Gross Profit	14,429	13,023	15,623	18,026
Operating EBITDA	9,729	8,417	10,672	12,604
Depreciation And Amortisation	(1,049)	(1,019)	(1,091)	(1,226)
Operating EBIT	8,681	7,398	9,581	11,378
Financial Income/(Expense)	1,603	1,486	1,664	1,798
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	10,284	8,885	11,245	13,176
Exceptional Items
Pre-tax Profit	10,284	8,885	11,245	13,176
Taxation	(2,434)	(2,250)	(2,811)	(3,294)
Exceptional Income - post-tax
Profit After Tax	7,850	6,635	8,434	9,882
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	7,850	6,635	8,434	9,882
Recurring Net Profit	7,850	6,635	8,434	9,882
Fully Diluted Recurring Net Profit	7,850	6,635	8,434	9,882

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	9,729	8,417	10,672	12,604
Cash Flow from Invt. & Assoc.
Change In Working Capital	(242)	(443)	(1,075)	(1,236)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	244
Other Operating Cashflow	(347)
Net Interest (Paid)/Received	975
Tax Paid	(2,239)	(2,250)	(2,811)	(3,294)
Cashflow From Operations	8,120	5,724	6,785	8,074
Capex	(162)	(163)	(163)	(163)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(2,921)	1,669	1,847	1,981
Cash Flow From Investing	(3,083)	1,505	1,683	1,817
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,359)	(5,918)	(7,163)	(7,163)
Preferred Dividends
Other Financing Cashflow	(627)	(183)	(183)	(183)
Cash Flow From Financing	(4,986)	(6,100)	(7,346)	(7,346)
Total Cash Generated	51	1,130	1,123	2,545
Free Cashflow To Equity	7,958	5,561	6,622	7,910
Free Cashflow To Firm	5,227	7,230	8,469	9,891

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	16,345	17,474	18,597	21,142
Total Debtors	9,715	10,159	11,383	12,790
Inventories
Total Other Current Assets	1,915	1,915	1,915	1,915
Total Current Assets	27,975	29,549	31,895	35,848
Fixed Assets	3,108	2,252	1,325	262
Total Investments	3,964	3,964	3,964	3,964
Intangible Assets	88	88	88	88
Total Other Non-Current Assets	722	722	722	722
Total Non-current Assets	7,882	7,026	6,099	5,036
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	1,230	1,231	1,380	1,550
Other Current Liabilities	4,067	4,067	4,067	4,067
Total Current Liabilities	5,297	5,298	5,447	5,617
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	1,393	1,393	1,393	1,393
Total Non-current Liabilities	1,393	1,393	1,393	1,393
Total Provisions	568	568	568	568
Total Liabilities	7,257	7,259	7,407	7,578
Shareholders Equity	28,600	29,317	30,587	33,306
Minority Interests
Total Equity	28,600	29,317	30,587	33,306

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	5.0%	0.4%	12.0%	12.4%
Operating EBITDA Growth	(7.0%)	(13.5%)	26.8%	18.1%
Operating EBITDA Margin	26.1%	22.5%	25.4%	26.7%
Net Cash Per Share (Rs)	262.42	280.56	298.59	339.45
BVPS (Rs)	459.18	470.69	491.09	534.75
Gross Interest Cover	45.73	40.54	52.50	62.35
Effective Tax Rate	23.7%	25.3%	25.0%	25.0%
Net Dividend Payout Ratio	59.5%	89.2%	84.9%	72.5%
Accounts Receivables Days	95.10	96.84	93.68	93.55
Inventory Days	0.09
Accounts Payables Days	16.66	18.39	18.09	18.36
ROIC (%)	58.5%	53.9%	73.0%	85.5%
ROCE (%)	24.7%	19.1%	24.0%	26.7%
Return On Average Assets	19.6%	15.3%	19.3%	21.6%

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

Market Data

Source: Bloomberg