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

Executive summary

• Q1 FY25 revenue reached INR 605 crores (₹6,063.43 million), with gross margin at 57% and EBITDA at INR 121 crores (20% margin); PAT for the quarter was INR 74 crores (₹459.19 million).

• 11 new deals were won and 12 digital transformation projects went live in Q1, with industry recognition for open finance and AI-driven platforms.

• The company continues to focus on expanding in North America, Europe, and Asia, with significant traction in Canada and the U.S.

• Financials prepared in compliance with Ind AS 34, reviewed by independent auditors, and approved by the board.

• Strategic investments in AI (Purple Fabric) and partner-ready platforms (eMACH.ai) are driving future growth.

Financial highlights

• License revenue for Q1 was INR 125 crores; AMC revenue was INR 121 crores; platform revenue at ₹343 Cr.

• LTM revenue was INR 2,318 crores, with EBITDA at INR 500 crores (22% margin) and PAT at INR 314 crores.

• Collections in Q1 were INR 556 crores; cash and cash equivalents at INR 813 crores as of June 2024.

• DSO as of June 30, 2024, was 126 days (global), 101 days excluding GeM contracts, 115 days (global excl. India), and 156 days (India).

• Consolidated net profit after tax for Q1 FY25 was Rs. 459.19 million, down from Rs. 528.45 million in Q1 FY24.

Outlook and guidance

• Management maintains FY25 revenue growth guidance of 15% (excluding GeM), with a strong deal pipeline and long-term growth target of 20% annually.

• Margin expansion to 30%+ is expected in 6-8 quarters if partnership network delivers as planned.

• Strong funnel progression with deal pipeline rising to ₹8,526 Cr in Q1FY25 from ₹7,240 Cr in Q1FY24.

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