posted on July 24, 2020 18:06
Tata Elxsi AGM
21st July 2020
- Technology changes are very fast. What are the innovations in drones supply chain?
Regulations in respect to drones are still evolving. Working with customers and partners specially, in the area of disaster response. Mastering the technology and ready to benefit once regulations ease up.
- What is the progress in portable diabetes kit?
Working with leading corporations & innovators. Reached clinical trials and working with them in areas company can contribute to them.
- Development in EV charge etc?
Driven by 4 key trends. Connected, autonomous, shared, electric. Working in developing solutions and intellectual property.
- What is Tata Elxis’s action in AI, blockchain, IOT? Driver for the company going ahead?
Tata motors – IOT for cost optimization especially for data analytics & natural application of connectivity. Company is in mode of investment in all the areas mentioned above.
Real time productive use especially in the area of automotive industry, medical devices, and communications is area company is looking to navigate.
- Opportunities with China issues?
Need to watch. Most customers are from larger nations North America and Europe. Supply chain may get shifted but technology trend is still controlled in their home market.
- Efforts in renewable energy?
Not currently focusing much on this. Focusing more on electric vehicles.
- Tata sons holding 42%, Tata investment holding 2%. Throw some light on it?
Promoters continue to have faith in the business.
- Companies revenues have gone up, but EPS and PAT have come down?
Significant macro-economic weakness witnessed in trade, Brexit and other aspects. Top 3 customers in automotive segment are going through a rough for last several quarters. Margins have come down due to the above while the company retains talent and continue to invest in digitalization. Company has put in a rigorous operation program which is reflected in first quarter results.
- Europe business hasn’t flourished the same as last year?
US market doing well as part of diversification strategy. Europe not performing well due to Brexit and challenges in automobile industry.
- Overlap of service between Tata Elxsi and TCS? How do we deal with the overlap?
We are a design led company. Especially Design products for automobile industry, medical devices and communication & Broadcast industry. Not just TCS, company looks at profile of every competitor to place themselves well in the markets.
- ROE 36% to 24% in last 5 years even though profits have gone up?
Will take a note of observations and will look to improve on those ratios. Dividends paid are in line with the capital allocation policies framed by the company.
- Everything is going virtual. What is company doing to grab this virtualization opportunity?
More than 96% of employees are enabled to work digitally. Won customers engaging with them digitally, selling them digitally and also contracting work digitally.
- 90% of turnover coming from forex. Can we have summary in dollar terms?
We will look at this.
- Mutual funds and insurance not invested more than 3% compared to 15-20% in other Tata companies?
Will reach out to them to articulate our vision, past performances and attract them as shareholders. We are a small scale player in three pillars laid down and company is looking to scale further from current levels.
- Throw more light on Panasonic partnership?
Doing well. It will scale in the coming years.
- Any possibility of merger with TCS and Tata Elxsi?
Not debated, not discussed. Company is focused on its own business.
- Overseas travel at 68 Cr more than 25% net profit?
Travel expenses should come down. Manpower and travel costs are significant part in this business.
Automobile contributes about 45%, Health care & medical division is about 8%, Media & Broadcast about 35%.
- How many employees have salaries above one Cr?
- Contingent liabilities of 210 lakhs to 31 Cr?
Mainly on account of income tax disallowance on certain expense and claims. Have filed a case against income tax authorities. Company has a fundamentally strong case.