Yahoo Finance Rare Tech Stock Winner in India Taps Niche Demand for EV Design
(Bloomberg) -- Strong demand for niche design services used in making electric vehicles has helped one Indian technology company’s stock surge by more than a third this year, even as inflation concerns have battered the sector globally.
Most Read from Bloomberg
Americans Who Can’t Afford Homes Are Moving to Europe Instead
Musk Lieutenant Scrutinized in Internal Tesla Purchasing Probe
These Are the World’s Most (and Least) Powerful Passports in 2022
Ex-Coinbase Manager Arrested in US Crypto Insider-Trading Case
Shares of Tata Elxsi Ltd. have jumped 37% in 2022, topping a gauge of Indian tech firms that has shed 28% with all but two stocks in the red. The company’s sales and profits have climbed on large deals for cloud-based platforms and artificial intelligence used to improve products and customer experience.
Tech Stocks in India Join Nasdaq in Worst Loss Since 2008: Chart
Tata Elxsi’s orders remain robust even as the global economy flashes warning signs, according to Chief Executive Officer Manoj Raghavan. While EV titan Tesla Inc. has been downsizing some operations amid surging material costs and a weak consumer outlook, the $6.3 billion Indian firm plans to expand.
“From all our major customers, we really have not heard any intent to reduce budgets,” Raghavan said in a conference call Friday. The Bengaluru-based firm could grow its current 10,000 headcount by as much as 50% in the year through March 2023, including new graduates and experienced workers, he said.
The company’s customers include China’s Great Wall Motor Co. and group sibling Tata Motors Ltd., according to data compiled by Bloomberg. Its net income rose 64% from a year ago in three months ended June, on 30% growth in sales.
Most Read from Bloomberg Businessweek
Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity
Mortgage Boycott Shows How Deep China’s Property Crisis Goes
©2022 Bloomberg L.P.
