Tata Elxsi posted its financial results for the quarter ended June on Wednesday after the market close.

What Happened: The Tata Group company reported a 2.5% drop in its net profit at ₹184.07 crore, compared to the ₹188.85 crore it posted in the same quarter last year. On a sequential basis, the profit was down around 6.5% compared to the ₹196 crore it posted in the March quarter.

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Revenue from operation for the tech major came in at ₹926.45 crore, up around 9% from the ₹850 crore it posted in the corresponding quarter of the previous year. On a quarter-on-quarter, the revenue was up by around 2% from the ₹905.94 crore posted in the March quarter.

Software development & services segment revenue was at ₹899.99 crore. System integration & support services revenue was around ₹26.46 crore.

Earlier in the week, brokerage firm Bernstein initiated coverage on IT stock. The analysts assigned an “underperform” rating on the stock, with a target price of ₹6,030.

“We step into the second quarter of this financial year with the confidence of a healthy deal pipeline, continued growth in our transportation business, new customer wins and expansion of business with strategic customers across verticals,” said Manoj Raghavan, CEO, Tata Elxsi.

Price Action: Tata Elxsi’s share price was up 1.46% to close at ₹7,119.45 on Wednesday.

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