In This Article:
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Operating Revenue: INR16.3 million for Q2 FY25, compared to INR21.1 million in Q2 FY24 and INR7.3 million in Q1 FY25.
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Operating EBITDA: Negative INR10.2 million for Q2 FY25, compared to negative INR36.6 million in Q2 FY24 and negative INR28 million in Q1 FY25.
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Net Loss: INR11.2 million for Q2 FY25, compared to INR45.3 million in Q2 FY24 and INR39.3 million in Q1 FY25.
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Team Size: 49 employees, interns, and consultants, compared to 63 in Q1 FY25.
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Investment Portfolio Value: Approximately INR572.8 million as of September 30, 2024, compared to INR533.9 million on September 30, 2023.
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Client Base: 63 clients served to date.
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Kids Stop Press Revenue: INR107 lakhs in H1 FY25.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Xelpmoc Design and Tech Ltd (BOM:542367) has shifted its focus from startups to the corporate segment, which is expected to stabilize revenue streams.
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The company reported an increase in quarter-on-quarter revenue from INR7.3 million in Q1 FY25 to INR16.3 million in Q2 FY25.
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Operating EBITDA losses have decreased significantly from INR36.6 million in Q2 FY24 to INR10.2 million in Q2 FY25.
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The company has a diversified revenue stream with both startups and corporates contributing to its income.
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Xelpmoc Design and Tech Ltd's portfolio companies, such as Mihup and Woovly, are showing promising growth and potential for future revenue increases.
Negative Points
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Year-on-year revenue has decreased from INR21.1 million in Q2 FY24 to INR16.3 million in Q2 FY25 due to the transition from startups to corporates and discontinuation of government business.
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The company is still experiencing net losses, with a net loss of INR11.2 million in Q2 FY25.
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The startup ecosystem is facing significant challenges, affecting some of Xelpmoc's portfolio companies' growth plans.
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The company has reduced its team size from 63 in Q1 FY25 to 49, indicating potential operational challenges.
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Xelpmoc Design and Tech Ltd is not currently onboarding new startups unless they present exceptional opportunities, which may limit future growth prospects in that segment.
Q & A Highlights
Q: What is Xelpmoc's current strategy and focus, especially regarding its products and services? A: Srinivas Koora, Whole-Time Director and CFO, explained that Xelpmoc has shifted its focus from startups to the corporate sector to mitigate risks associated with startup mortality. The company is concentrating on developing its own products, particularly targeting the corporate segment with data science and AI solutions. They are also integrating previously independent modules into comprehensive solutions for specific domains.