IRIS Business Services (540735) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations for Q1 FY25 was ₹2,764.77 lakhs, up 34% year-over-year and down 9% sequentially from Q4 FY24.

• Net profit for the quarter was ₹288.45 lakhs, a significant increase from ₹93.03 lakhs in Q1 FY24, but down from ₹472.35 lakhs in Q4 FY24.

• The Board approved a preferential issue of 543,478 equity shares and 543,477 warrants at ₹184 per share, with allotment completed on July 2, 2024.

• A new wholly owned subsidiary, IRIS Regtech Sdn. Bhd, was incorporated in Malaysia in June 2024 and is in the setup phase.

Financial highlights

• Total income for Q1 FY25 was ₹2,817.62 lakhs, compared to ₹2,072.98 lakhs in Q1 FY24 and ₹3,060.67 lakhs in Q4 FY24.

• EBITDA (approximated as profit before tax plus depreciation and finance costs) for Q1 FY25 was ₹427.80 lakhs.

• Earnings per share (EPS) for Q1 FY25 was ₹1.49 (basic), up from ₹0.48 in Q1 FY24.

• Total comprehensive income for Q1 FY25 was ₹284.63 lakhs.

Outlook and guidance

• Management remains committed to supporting subsidiaries, particularly IRIS Business Services LLC, which is operating on a going concern basis despite negative net assets.

• The new Malaysian subsidiary is expected to contribute in future periods once operational.