Transcript of the Conference Call on Financial Results for the second half year and year ended March 31, 2025. Kindly take the same on records.
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Awaiting price reaction for this filing.
CapitalNumbers Infotech held its first-ever investor call post its January 2025 IPO to discuss FY25 results. FY25 total income rose 5.27% YoY to INR105.6 crores, but EBITDA dipped 2.07% to INR35.7 crores (margin down to 33.77%) and net profit was nearly flat at INR25.8 crores. Management attributed muted growth to the IPO falling on the same day as DeepSeek's launch, Ramadan and Umrah-related disruptions in the Middle East, and Trump tariff uncertainty in Europe. The company sits on a debt-free balance sheet with INR136 crores in cash and investments, ROE of 23%, and 90% recurring revenue. Management guided for 15% organic revenue growth and 100–150 bps EBITDA margin improvement in FY26, earmarked INR40 crores for an acquisition (targeting a $3–5 million, EBITDA-positive, export-focused IT firm), and plans to add 100+ engineers plus set up a new Gurgaon delivery center.
Flat FY25 numbers combined with explicit FY26 guidance for double-digit organic growth, margin recovery, and a clear M&A pipeline are positive signals for shareholders. The strong INR136 cr cash pile and debt-free status give room for inorganic growth, though execution risk on the acquisition and Europe/Middle East expansion remains. Expect the stock to react to the visibility on pipeline (6 new MSAs worth ~$1M already signed).