Alldigi Tech (ALLDIGI) Q2 24/25 earnings summary

Executive summary

• Rebranded as Alldigi Tech Limited, emphasizing digital transformation and customer-centricity.

• Approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, showing strong year-over-year growth in revenue and profit.

• Declared an interim dividend of INR 30 per equity share for FY 2024-25, with record date set for 6 November 2024.

• Appointed Mr. Avinash Jain as Chief Financial Officer effective 25 October 2024.

• International business now comprises a larger share of total revenues, reflecting strategic focus.

Financial highlights

• Q2 FY25 consolidated revenue from operations: INR 131.4 crores, up 70% YOY and 1.6% QOQ; organic YOY growth (excluding divested business) at 24%.

• Standalone Q2 FY25 revenue: INR 8,106 lakhs, up from INR 7,543 lakhs in Q2 FY24; six-month standalone revenue at INR 15,989 lakhs.

• Q2 FY25 consolidated net income: INR 12.1 crores, down 25% YOY and 62% QOQ, mainly due to higher effective tax rate and forex losses.

• H1 FY25 consolidated revenue: INR 260.8 crores, up 18.6% YOY; H1 EBITDA: INR 62 crores, up 24.2% YOY.

• Exceptional gain of INR 1,708 lakhs in Q1 FY25 from sale of Labour Law Compliance (LLC) division; additional gain of INR 61 lakhs in Q2 FY25 from transfer of customer contracts.

Outlook and guidance

• Management expects to close FY25 with revenue growth in excess of 20%.

• Margins are expected to improve by 1-1.5% year-on-year.

• Q4 is anticipated to be the strongest quarter, with Q3 and Q4 expected to show margin and revenue recovery.

• Financial results for the current period are not directly comparable to previous periods due to the sale of the LLC division.

• CXM revenue growth for the year is projected to exceed 20%.