eMudhra (EMUDHRA) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue grew to INR 950.2 million, up 70.7% year-on-year, led by enterprise solutions and international expansion into the US, Europe, Africa, Asia Pacific, Philippines, and Malaysia.

• EBITDA increased 19% year-on-year, with PAT up 11.1%, and margins maintained despite higher sales and marketing expenditure.

• Strong deal momentum in BFSI, education, eGovernment, and new wins in the US, Kenya, Qatar, Philippines, and India.

• Acquisition of Two95 International in New Jersey for USD 10.1 million to enhance services and customer base.

• Continued global and domestic momentum in cybersecurity, digital transformation, and zero trust offerings.

Financial highlights

• Q1 FY2025 revenue from operations: INR 950.2 million, up 70.7% year-on-year; consolidated revenue at INR 950.21 million.

• EBITDA: INR 295 million, up 19% year-on-year, with a 31% margin.

• Net profit: INR 182 million, up 11.1% year-on-year, with a 19.2% margin; consolidated net profit at INR 178.49 million.

• Basic EPS increased to INR 2.20; diluted EPS at INR 2.16.

• Gross margin for Q1 FY25 was 66.4%, down from 73.7% YoY.

Outlook and guidance

• Confident in achieving 25%-30% growth, supported by a healthy order book and continued deal wins.

• Focus on expanding enterprise solutions, professional services, and leveraging AI for identity vetting and risk assessment.

• Data centers in Bangalore, Chennai, and Amsterdam expected to support growth for at least five years.

• Management to assess the impact of the Code on Social Security, 2020, once effective.