Indegene (INDGN) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 6,868 million, up 8.8% year-on-year, driven by enterprise and medical solutions, with H1 revenue growth at 9.7% year-on-year.

• PAT increased 22.3% YoY to INR 917 million, with EPS up 13% YoY; top 5 accounts grew 2.3% sequentially and 68% of revenue came from top 20 global biopharma companies.

• Active clients increased from 65 to 68, and $1 million+ clients rose from 36 to 37 in Q2; over 95% of revenue comes from the US and EU.

• Board approved unaudited standalone and consolidated results for the quarter and six months ended 30 September 2024; statutory auditors issued an unmodified review report.

• IPO completed in May 2024, with shares listed on NSE and BSE.

Financial highlights

• EBITDA margin for Q2 was 18.4%, down 120 bps sequentially and 80 bps YoY, impacted by wage hikes but offset by productivity gains.

• PAT margin improved to 13.4%, up 0.4% sequentially and 160 bps YoY, aided by zero interest charge after debt repayment from IPO proceeds.

• Cash and cash equivalents stood at INR 14,666 million at quarter end.

• Basic EPS for Q2 FY25 was ₹3.84, up from ₹3.38 in Q2 FY24.

• EBITDA for H1 FY25 was ₹2,437 million, up from ₹1,928 million YoY.

Outlook and guidance

• Management expects robust growth in H2, supported by ramping up of new client logos and stabilized top accounts.

• Focus remains on productivity improvement through capacity management and automation to offset wage hikes.

• Return on equity post-IPO is at 21%, and return on capital employed net of cash is around 48%.

• Management and auditors confirm compliance with Indian Accounting Standards and SEBI regulations.