Q1 2025 MPS Ltd Earnings Call Transcript
Key Points
- MPS Ltd (BOM:532440) reported robust revenue growth of 36.3% year-over-year, reaching INR180 crores on an FX adjusted basis.
- The company's top 10 customers now contribute to less than 45% of total revenue, indicating reduced customer concentration.
- Revenue from the Content Solutions business grew by 32% in Q1 FY25 compared to the previous year.
- The Platforms business, including the acquisition of AJE, saw an 80% increase in revenue year-over-year.
- The company is optimistic about the positive impact of its new operating model, which embraces gig workers, on future margins and growth.
- Despite revenue growth, there was a decline in profit before tax (PBT) in the last quarter.
- Margins in the Content Solutions business were suppressed to 28.66%, largely due to the acquisition of AJE, which was initially a loss-making asset.
- The e-Learning business experienced slower-than-expected growth, with FX adjusted revenues growing by only 6% in Q1 FY25.
- The transition to a new operating model in the e-Learning business led to suppressed margins in Q1.
- Employee costs increased by 55% year-over-year, despite only a 10% increase in headcount, primarily due to the acquisition of AJE and Liberate.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings call of MPS Limited. (Operator instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Rahul Arora, Chairman and CEO. Thank you, and over to you.
Thanks, Shivangi. Good evening from Gurugram, and a warm welcome to our Q1 FY25 earnings call. Today on the call I have with me Sunit Malhotra, CFO of MPS Limited; Tony Alves, SVP and Head of Product Management at HighWire powered by MPS; Prarthana Agarwal, CFO MPS Interactive Systems and Deputy CFO at MPS Limited.
Prarthana and Sunit join us from our corporate office in Noida, and Tony joins us from the Greater Boston area. Sunit will kick things off in our opening segment today by discussing our financial performance. Then Prarthana will update us on our Content and e-Learning Solutions business developments. Tony will then follow up on the progress made in our Platform business, Finally, I will provide an update
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