Tata Elxsi Ltd

Dear stakeholders,

At the outset, let me reflect on the remarkable legacy of Mr. Ratan Tata, as we are reminded of his unparalleled contributions to our organisation and the nation. His visionary leadership, unwavering commitment to ethical business practices, and profound dedication to social causes have left an indelible mark on all of us. He continues to guide us as we strive to uphold the values he championed.

Mr. Tata's belief that innovation must serve a greater purpose resonates deeply with our approach at Tata Elxsi. We don't just create technology; we design experiences that simplify complexity, enhance human lives, and drive sustainable progress - what we call as designing purpose driven experience. For over three and a half decades, we have stayed committed to embedded systems and product design that deliver a superior quality of experience. Our investments in research, innovation, automation and AI are helping businesses simplify their products and services, driving real-world impact.

FY2024-25: The year that was

The year 2024-25 has been one where the Global Uncertainty Index reached an all-time high. The geopolitical situations, elections in many countries and on the technology side, AI clearly has taken the narrative at all levels. In this context, this has been a challenging year for your Company and generally for the IT industry.

Against this backdrop, leveraging our design-digital capabilities in our chosen verticals, your Company's operating revenues in fiscal year 2024-25 reached Rs. 3,729.0 crores, reflecting a year-on-year growth of 5.0%. For the financial year, Profit Before Tax (PBT) was recorded at Rs. 1,028.4 crores and Profit After Tax (PAT) at Rs. 784.9 crores.

Our Transportation business, which accounts for more than 50% of your Company's operating revenue, clocked Rs. 1,961.9 crores in topline, growing 13.8% year-on-year. In a year which witnessed growing challenges for the automotive OEMs, we maintained our

Over the past year, our investments in Al and Gen Al have begun to show results, with several engagements benefitting from faster project execution, improved guality, and enhanced customer satisfaction. Embracing the Al and Gen Al technologies across our entire operations is helping us build great product and services for our customers at speed. growth trajectory by pivoting our revenue share towards OEMs. During the year, your Company won multiple large deals from OEMs to support their EV and AD/ ADAS programmes. These long-term strategic partnership deals are of strategic importance to our customers in terms of their future programmes.

During the financial year, the Media & Communications business reported a revenue of Rs. 1,175.6 crores while the Healthcare & Life Sciences business reported a revenue of Rs. 446.6 crores.

As we continue to engage with key customers in the Media and Communication business to protect and grow our position in the coming financial year, we are increasingly optimistic about the growth prospects in the Healthcare & Life Sciences business, where several client opportunities are progressing well.

On the sustainability front, I'm delighted to announce that we have successfully achieved a 64% reduction in GHG emissions intensity per Million US$ by transitioning to renewable energy, which now constitutes 51% of our total electricity use, compared to the baseline year of 2020-21. This progress aligns with our goal of becoming carbon neutral by 2030.

Looking Ahead

Over the past year, our investments in AI and Gen AI have begun to show results, with several engagements benefitting from faster project execution, improved quality, and superior customer satisfaction. Embracing the AI and Gen AI technologies across our entire operations is helping us build great products and services for our customers at speed.

The FY 2025-26 brings its share of opportunities and challenges, shaped by unpredictable global trade renegotiations, supply chain restructuring, heightened geopolitical risks, and currency fluctuations. However, your Company is focused on managing the controllables and advancing our growth agenda in terms of:

> Embrace AI holistically in line with the 'Lean Forward' strategy

> Fastrack and execute strategic long-term deals signed with global auto majors

> Consolidate AI and design-led automotive capabilities for the EV segment, and leverage them for drones and robotics

> Penetrate further into Aerospace and Defence verticals

I would like to thank our researchers, designers, and engineers for their commitment and dedication. I also extend my gratitude to them and the management team for their diligence, efforts, and unwavering focus on delivery excellence, growth, and profitability.

The Board of Directors has proposed a final dividend of 750%, equivalent to Rs. 75 per share, subject to taxation, for your review.

I take this opportunity to thank our Board of Directors for their time, invaluable guidance and insights. On behalf of the Board and the management team, I express our gratitude for your ongoing trust and support.