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

Executive summary

• Q1 FY25 revenue reached INR 605 crores (₹605 Cr), 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 Q1 FY25, with strong momentum in North America, India, ANZ, and the Middle East.

• eMACH.ai platform recognized as a transformative open finance solution, winning industry accolades and driving growth.

• LTM revenue was INR 2,318 crores, with 152 deals and 56 digital transformation projects completed.

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

Financial highlights

• Q1 FY25 total revenue: INR 605 crores (₹605 Cr); platform revenue: ₹343 Cr; license revenue: INR 125 crores; AMC revenue: INR 121 crores.

• Gross margin: 57% (₹343 Cr); EBITDA: INR 121 crores (20% margin); PAT: INR 74 crores; PBT: ₹98 Cr.

• Cash and cash equivalents at INR 813 crores as of June 2024; collections at INR 556 crores; DSO at 101 days (excluding GeM and contractually not due).

• LTM EBITDA exceeded INR 500 crores (22% margin); LTM PAT: ₹314 Cr.

• Consolidated Q1 FY25 revenue was Rs. 6,063.43 million, with net profit at Rs. 459.19 million.

Outlook and guidance

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

• Strong funnel progression with Q1 FY25 funnel at ₹8,526 Cr, up from ₹8,138 Cr in Q4 FY24.

• 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.

• Focus on accelerating growth through eMACH.ai platform and expanding digital transformation deals globally.