Intellect Design Arena (INTELLECT) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached INR 605 crores, with gross margin at 57% and EBITDA at INR 121 crores (20% margin); PAT for the quarter was INR 74 crores.

• 11 new deals were won and 12 digital transformation projects went live in the quarter.

• Recognized as a transformative open finance platform and maintained leadership in global fintech rankings.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, following audit committee recommendations.

• Financials prepared in compliance with Ind AS 34 and reviewed by independent auditors, with no material misstatements identified.

Financial highlights

• License revenue for Q1 was INR 125 crores; AMC revenue was INR 121 crores.

• Collections for the quarter were INR 556 crores; DSO at 126 days (101 days excluding GeM).

• LTM revenue was INR 2,318 crores, with EBITDA at INR 501 crores (22% margin) and PAT at INR 314 crores.

• Revenue composition: USD 37%, INR 26%, GBP 14%, CAD 8%, EUR 6%, others 9%.

• Consolidated revenue from operations for Q1 FY25 was Rs. 6,063.43 million, with net profit after tax at Rs. 459.19 million.

Outlook and guidance

• Management maintains 15% annual revenue growth guidance (excluding GeM), despite Q1 growth at 12%.

• Strong funnel progression with deal pipeline rising to INR 8,526 crores in Q1FY25.

• Targeting INR 700 crore quarterly revenue, with strong pipeline and deferred deals expected to contribute in future quarters.

• Long-term growth designed for 20% annually, with acceleration expected as partnerships mature.

• Company operates as a single segment: Software Product License & related services.