IRIS Business Services (540735) Investor Day 2024 summary

Strategic direction and business model evolution

• Focus on four core segments: SupTech, RegTech, TaxTech, and DataTech, each with distinct business models and growth strategies, serving regulators, enterprises, and financial institutions in over 54 countries.

• Emphasizes SaaS, cloud-ready solutions, modular offerings, and AI-driven automation to address evolving compliance and reporting needs.

• SupTech is the largest revenue contributor, accounting for 50% of H1 revenues and 45% of FY24 revenues, with strong global regulator relationships and a land-and-expand strategy.

• RegTech targets B2B financial reporting, with IRIS Carbon (SaaS, international focus) and IRIS iDEAL (on-prem, BFSI focus), aiming to scale through improved pricing and cross-selling.

• TaxTech leverages regulatory mandates and digitalization, expanding from India to Malaysia, Singapore, and UAE, targeting new geographies and adjacencies like accounts payable automation.

Financial performance and growth outlook

• FY24 consolidated revenue reached ₹10,296 lakhs, up from ₹7,490 lakhs in FY23, with EBITDA at ₹1,588 lakhs and PAT at ₹879 lakhs.

• Achieved 35% revenue growth in the last year, with profitability across all segments and operating leverage beginning to take effect.

• SupTech segment led with ₹4,584 lakhs revenue and ₹423 lakhs EBITDA; RegTech posted ₹3,832 lakhs revenue and ₹985 lakhs EBITDA.

• Revenue mix in FY24: SupTech 45%, RegTech 37%, TaxTech 14%, DataTech 3%; Africa and India are key markets, contributing 28% and 21% of revenue.

• Management aspires to sustain or exceed current growth rates over the next 5-10 years, targeting significant market share in emerging SaaS and ESG reporting markets.

Product innovation and competitive positioning

• SupTech and RegTech platforms are built around data standards (XBRL, SDMX), with deep expertise and participation in global standards bodies.

• IRIS Carbon differentiates as a Microsoft Office-based SaaS platform with high customer satisfaction, targeting disclosure management and ESG reporting for 74,000+ companies globally.

• Launching iFILE 2.0 with cloud-ready architecture, faster implementation, and AI-enabled automation for regulatory reporting.

• TaxTech solutions integrate compliance and business process automation, leveraging AI for litigation management and accounts automation.

• Competitive landscape includes CoreFiling, Regnology, Fujitsu (SupTech), and Workiva (RegTech), with IRIS offering integrated, end-to-end platforms and rapid implementation.