Intellect Design Arena Ltd (BOM:538835) Q2 2025 Earnings Call Highlights: Strong Cash Position ...

GuruFocus News
3 min read

In This Article:

  • EBITDA: INR 79 crores at 14%.

  • Collections: INR 550 crores during the quarter.

  • Cash Position: INR 755 crores at the end of Q2.

  • DSO: Overall DSO at 146; 190 outside India, 270 in India.

  • Total Revenue (H1): INR 1161 crores.

  • License Revenue (H1): INR 210 crores.

  • AMC Revenue (H1): INR 241 crores.

  • Platform Revenue (H1): INR 112 crores.

  • PBT (H1): INR 127 crores.

  • PAT (H1): INR 168 crores.

  • Total Revenue (LTM): INR 2,344 crores.

  • License Revenue (LTM): INR 468 crores.

  • AMC Revenue (LTM): INR 470 crores.

  • PBT (LTM): INR 408 crores.

  • Deal Wins (LTM): 53 deal wins.

  • Digital Transformation Projects (LTM): 52 projects went live.

  • Revenue Mix: 39% USD, 18% GBP, 16% INR, 7% EUR, 6% CAD, 14% other currencies.

  • Funnel Size (Q2): INR 8,889 crores with Destiny Deals accounting for 64%.

  • Average Deal Size (Destiny Deals): INR 50 crores.

  • Funnel Growth: 18% increase over the last year.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Intellect Design Arena Ltd (BOM:538835) reported a strong cash position of INR755 crores at the end of Q2.

  • The company signed 12 deals and went live on nine digital transformation projects during the quarter.

  • eMCH.ai has been selected by 12 customers globally in Q2, indicating strong demand for their open finance platform.

  • The company has a healthy sales funnel of INR8,889 crores, with Destiny Deals accounting for 64% of the funnel size.

  • Intellect Design Arena Ltd received several industry recognitions, including awards from Data Insights, Celent, and Gartner, highlighting their strong market position.

Negative Points

  • The financial results for the quarter did not meet analyst expectations, with delays in deal sign-offs impacting EBITA.

  • The company's Days Sales Outstanding (DSO) remains high, particularly in India at 270 days.

  • There is a significant delay in deal closures due to lengthy contracting processes, affecting revenue recognition.

  • The company has stopped providing guidance due to the volatility and unpredictability of deal closures.

  • Subscription revenues have shown a decline, attributed to volume fluctuations and recognition policies.

Q & A Highlights

Q: When will Intellect Design Arena Ltd achieve a consistent EBITDA margin above 20%? A: Arun Jain, CMD, stated that achieving a 20% EBITDA margin is not a significant issue, and they are optimistic about reaching this target in the next two quarters. They are bullish about converting several large deals, which should help achieve this margin.

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