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

Executive summary

• Achieved 33% year-over-year total income growth for H1 FY25, with Q2 growth at 30% over the prior year quarter.

• EBITDA increased by 78% and net profit rose 195% year-over-year for H1 FY25, reflecting improved operational efficiency and margin expansion.

• Segment nomenclature was updated to SupTech, RegTech, TaxTech, and DataTech, aligning with global standards.

• Africa, especially the South African Reserve Bank contract, contributed over 36% of total revenue.

• Business momentum supported by successful project go-lives, new client acquisitions, and product enhancements across all segments.

Financial highlights

• H1 FY25 consolidated revenue was ₹5,849.51 lakhs, up from ₹4,459.90 lakhs year-over-year; Q2 FY25 revenue was ₹3,084.74 lakhs, up from ₹2,396.96 lakhs in Q2 FY24.

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

• H1 FY25 net profit was ₹677.71 lakhs, up from ₹230.03 lakhs year-over-year; Q2 FY25 net profit was ₹389.26 lakhs, up from ₹137.01 lakhs.

• Return on net worth improved to 32% and ROE to 22% in H1 FY25.

• 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.

• Revenue from the South African contract is expected to remain stable or increase, though growth rates may moderate due to a higher base.

• 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.

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