Debasis Mohapatra
Bengaluru, 20 June 2024
Engineering services firm, Tata Elxsi is likely to see a growth revival in its media vertical during the first half of the current financial year after a de-growth seen in the fourth quarter of last fiscal.
“We believe that we have bottomed out in Q4 for this vertical. Internally, we have done some amount of restructuring in the way we go to market in this particular vertical. We made some strategic choices. I’m pretty confident that we will see growth coming back into this vertical as we move into Q1 and Q2 of this financial year. So, the pipeline is building up, and I’m pretty bullish that we will see a recovery,” Manoj Raghavan, CEO of Tata Elxsi has said during the post-earnings analyst call.
During the fourth quarter of the last fiscal, the Media & Communications business of Tata Elxsi declined 4.6% as compared to the previous year.
According to the company, it saw a deal ramp down from one client owing to a merger-led impact. It, however, informed that such ramp-downs were over and no client-specific issues would come up in the coming quarters.
“Considering the severity of challenges in the media and telecom industry, we have done well throughout the year to protect business, add marquee customers, and increase wallet share with key customers. We are seeing growth in operator revenues and our overall customer base. Even as customers continue to tighten budgets and optimize spending, we believe that there are opportunities in contributing to the revenues through advertising technologies or adtech and enabling opex reductions through automation and transformation of network operations,” the company has said.
According to the engineering services firm, the media and communication vertical would start contributing to its growth in the current financial year. On Wednesday, share price of Tata Elxsi closed 0.57% down at Rs 7,248 on NSE.
