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R Systems International Ltd (BOM:532735) Q4 2024 Earnings Call Highlights: Strategic ...

In This Article:

  • Quarterly Revenue: INR 449 crores ($53.2 million), a 1.1% increase quarter-on-quarter and 7.8% year-on-year growth.

  • Quarterly EBITDA: INR 80.1 million ($9.5 million), representing 17.8% of revenues.

  • Quarterly Net Profit: INR 39 crores ($4.6 million).

  • Annual Revenue: INR 1,741.7 crores ($208.2 million), a 4.6% growth excluding the onetime BOT fee.

  • Annual EBITDA: INR 291 crores ($34.8 million), 16.7% of revenues, with an 18.7% growth excluding the onetime fee.

  • Annual Net Profit: INR 131.2 crores ($15.7 million).

  • Gross Margin: 37.9% for the quarter, 35.9% for the year.

  • SG&A Expenses: Increased to INR 90.3 crores for the quarter.

  • Utilization Rate: Peak at 82%.

  • Days Sales Outstanding (DSO): Stable at 61 days.

  • Cash and Bank Balances: INR 196.1 crores.

  • Equity Attributable to Shareholders: INR 624.1 crores.

Release Date: February 14, 2025

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

Positive Points

  • R Systems International Ltd (BOM:532735) reported an EBITDA margin expansion of 200 basis points, reaching 16.7% for the year.

  • The company was recognized as the Best Supplier of the Year by the Chamberlain Group and as a top 10 leading AWS partner to watch in 2024.

  • R Systems International Ltd (BOM:532735) achieved significant partnerships and alliances, enhancing its status with Microsoft, AWS, Salesforce, and ServiceNow.

  • The company launched new offerings, including modernization solutions and a Chaos Engineering integrated DR model, enhancing its service portfolio.

  • R Systems International Ltd (BOM:532735) added key leadership positions, strengthening its management team and expanding its capabilities.

Negative Points

  • Revenue growth was impacted by lower billing days in Q4, resulting in a 3% impact on quarterly revenues.

  • The company faced geopolitical uncertainties and inflationary pressures, which affected revenue growth for the year.

  • R Systems International Ltd (BOM:532735) reported a net profit decline to INR 131.2 crores from INR 140.1 crores the previous year.

  • The effective tax rate increased to 31% due to non-deductible amortization expenses from acquisitions.

  • Despite positive indicators, the company did not provide specific guidance for CY 2025, leaving growth expectations uncertain.

Q & A Highlights

Q: Can you provide insights into the ACV and TCV growth and any new client acquisitions in the ISV verticals? A: Nitesh Bansal, Managing Director and CEO, stated that the ACV and TCV have grown significantly, with over 50% growth in deals generating over $0.5 million in revenue. The pipeline includes larger deals, and R Systems is now invited to more RFPs than two years ago. New ISV clients have been signed, including a significant ESG platform company and a Healthtech platform focused on behavioral health services.