Tata Elxsi (TEL) has posted a strong performance in 3QFY18. with EBITDA margin rising by 250bps QoQ and 407bps YoY to the highest-ever level of 27.1%. In absolute terms, its EBITDA rose by 11.3% QoQ and 31.1% YoY owing to higher share of Software Development & Services (SDS) business to the total revenue. This segment which grew by a healthy 3.7% QoQ and 13.5% YoY to Rs3.36bn contributed >97% to TEL's total revenue (the highest level) led by TEL's presence in specialised services including Auto Electronics, Autonomous Cars, Software-defined Networking in Broadcasting, VR/AR experiences, Digital and IoT. On the flip side, revenue from Systems Integration & Support (SIS) segment declined by a steep 48.5% QoQ and 39.9% YoY owing to...