Tracxn Technologies (TRACXN) Q2 24/25 earnings summary

Executive summary

• Achieved steady growth in revenue and profitability in Q2 FY25, with strong customer account additions and increased platform engagement.

• Growth initiatives, including specialized teams and product-led strategies, are yielding positive results.

• Maintained a global customer base with 62% international revenue share in H1 FY25.

• Unaudited financial results for the quarter and six months ended September 30, 2024, have been reviewed and approved by the Board of Directors and Audit Committee on November 8, 2024.

Financial highlights

• Q2 FY25 revenue from operations: ₹21.4 Cr; EBITDA: ₹0.9 Cr (margin 4.3%); PAT (excl. deferred tax): ₹1.7 Cr (margin 7.9%).

• H1 FY25 revenue from operations: ₹41.9 Cr (up 1.5% YoY); EBITDA: ₹1.2 Cr (margin 2.9%); PAT (excl. deferred tax): ₹3.0 Cr (margin 7.1%).

• Free cash flow for H1 FY25: ₹8.3 Cr; cash & cash equivalents: ₹85.0 Cr (up 34.8% YoY).

• Q2 FY25 revenue from operations: ₹2,139.39 lakhs, up from ₹2,053.96 lakhs in the previous quarter.

• Net loss for Q2 FY25 was ₹465.78 lakhs, primarily due to a significant deferred tax asset reversal.

Outlook and guidance

• Early signs of momentum in both volume and value growth, with highest net customer account additions in Q2 FY25.

• Growth initiatives across marketing, sales, and account expansion expected to further accelerate performance.

• Optimistic trend in private market recovery, though overall funding recovery is still awaited.

• Management reassessed the recoverability of deferred tax assets and reversed ₹635.07 lakhs, impacting net profit.