Ceinsys Tech (538734) Q2 24/25 earnings summary

Executive summary

• Achieved 71% YoY revenue growth in Q2 FY25 and 46% YoY in H1 FY25, driven by value-added projects and efficiency improvements.

• PAT grew 149% YoY in Q2 FY25 and 82% YoY in H1 FY25, with margins expanding to 13% and 14.4% respectively.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, and noted limited review reports from auditors.

• Amendments to the Employee Stock Option Plan 2024 were approved, extending vesting to 3 years, and significant grants to key employees in a US subsidiary were proposed.

• Order book surpassed INR 12,100 Mn as of Sept 2024, with 76% from geospatial & engineering services.

Financial highlights

• Q2 FY25 revenue: INR 900 Mn (up 71% YoY); EBITDA: INR 168 Mn (up 54% YoY); PAT: INR 117 Mn (up 149% YoY).

• H1 FY25 consolidated revenue: INR 1,639 Mn (up 46% YoY); standalone revenue: ₹14,110.84 lakhs; consolidated revenue: ₹16,388.58 lakhs.

• H1 FY25 consolidated net profit: ₹2,356.29 lakhs, up from ₹1,302.91 lakhs YoY.

• Cash and cash equivalents (consolidated) rose to ₹15,070.50 lakhs as of September 30, 2024.

• Working capital cycle improved to 108 days from 190 days in March 2024.

Outlook and guidance

• Focus on GeoAI, spatial analytics, digital twins, AR/VR, and digital water management for future growth.

• Segmental reorganization to align with business plans, now reporting on "Geospatial & Engineering Services," "Technology Solutions," and "Others."

• Scheme of amalgamation with a wholly owned subsidiary is in process, pending regulatory approvals.

• Plans to leverage India's geospatial market growth (13.5% CAGR by 2025) and expand in EV and mobility sectors.

• Further acquisitions planned in geospatial, manufacturing, and technology domains.