IRIS Business Services (540735) Q2 24/25 earnings summary

Executive summary

• Achieved 33% year-over-year total income growth for H1 FY25, with Q2 FY25 income up 30% year-over-year and significant increases in EBITDA and net profit.

• Expanded international presence, launched new subsidiaries, and acquired major contracts in Africa and Asia.

• Enhanced product offerings, implemented value-based pricing, and updated segment nomenclature to SupTech, RegTech, TaxTech, and DataTech.

• Board and audit committee approved and published un-audited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• H1 FY25 total income grew 33% year-over-year to ₹5,971 lakhs; Q2 FY25 income up 30% year-over-year to ₹3,154 lakhs.

• EBITDA up 78% year-over-year to ₹1,000 lakhs in H1 FY25; Q2 FY25 EBITDA up 87% year-over-year to ₹572 lakhs.

• Net profit for H1 FY25 nearly tripled year-over-year to ₹678 lakhs; Q2 FY25 net profit up 184% year-over-year to ₹389 lakhs.

• EBITDA margin improved to 16.7% in H1 FY25 from 12.5% in H1 FY24.

• Cash and cash equivalents as of September 30, 2024, stood at ₹2,000.37 lakhs, up from ₹1,393.42 lakhs as of March 31, 2024.

Outlook and guidance

• SupTech and RegTech segments expected to remain growth drivers, with continued momentum in Africa and new contracts in Nigeria, Mauritius, and Malaysia.

• Management expects the new segment structure to provide clearer operational and financial performance insights.

• Exploring SaaS and pay-per-use models for regulators, aiming for recurring revenue streams.

• Disclosure management and ESG reporting solutions are seeing increased demand, especially in Europe.