Protean eGov Technologies (544021) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations rose 7.36% YoY to ₹7,417.40 million; PAT fell to ₹1,075.70 million from ₹1,438.87 million, against a prior-year property-sale gain.

• Population-scale e-governance services remained the core, while investment accelerated in cloud, cybersecurity, data services, Account Aggregator and Open Digital Ecosystems.

• Debt-free operations, ₹1,370 million FY23 operating cash flow and a proposed 100% dividend supported the financial profile.

Financial highlights

• Standalone revenue from operations was ₹741.74 crore vs ₹690.91 crore in FY22, up 7.36%; growth came mainly from PAN, CRA and eSign volumes.

• Standalone PAT was ₹107.57 crore vs ₹143.85 crore; PBT was ₹140.93 crore vs ₹185.50 crore.

• Consolidated revenue was ₹742.20 crore vs ₹690.91 crore; consolidated PAT was ₹107.04 crore vs ₹143.82 crore.

• FY22 other income included a ₹43.90 crore Bangalore data-centre sale gain; FY23 other income was ₹41.17 crore standalone and ₹41.66 crore consolidated.

• Standalone total expenses rose 9.89% YoY to ₹6,420 million, primarily due to higher salary costs; employee benefits increased to ₹121.39 crore from ₹78.69 crore.

Outlook and guidance

• Strategy targets diversification from 3 to 6 business verticals, with investments in people, products, technology and open-source/open-standard Centres of Excellence.

• Expansion priorities include Account Aggregator, data and allied services, cloud, information-security consulting, Open Digital Ecosystems and overseas markets.

• Made-in-India cloud services launched in August 2022; services include IaaS and PaaS, with BFSI identified as a potential client market.

• India FY24 GDP growth was projected at 6.5%; the Indian IT sector was projected to reach US$500 billion by 2030.