Q4 2024 IRIS Business Services Ltd Earnings Call Transcript
Key Points
- IRIS Business Services Ltd (BOM:540735) achieved a significant milestone by crossing the INR100 crore revenue mark, driven by a major contract in South Africa.
- The company reported a 37% growth in revenue for the full year, with EBITDA increasing by 45% and profit before tax nearly doubling.
- Return on net worth improved substantially to 21% from the previous year's 14%, indicating efficient use of capital.
- Collection efficiencies improved, reducing receivables as days of sales to about 80 days, aiding in better working capital management.
- Net operating cash flow for the full year more than doubled to close to INR12 crores, providing a strong cash position for future growth initiatives.
- The company's growth in the 'create' segment was more sedate compared to the 'collect' segment, indicating a need for better performance in this area.
- Despite the strong financial performance, the company faces challenges in converting project-based revenue from the 'collect' segment into recurring revenue.
- There is uncertainty regarding the number and value of future RFPs (Request for Proposals) from regulators, making it difficult to predict future revenue streams.
- The company has not yet generated revenue from its ESG (Environmental, Social, and Governance) offerings, which are still in the early stages of development.
- The company has a cautious approach to making forward-looking statements, which may limit investor visibility into future growth prospects.
Ladies and gentlemen, good day, and welcome to the earnings call of IRIS Business Services Limited for the quarter and year ended March 31, 2024. (Operator Instructions) Please note that this conference is being recorded.
We have Mr. S Swaminathan, CEO; Mr. K Balachandran, CFO; Ms. Deepta Rangarajan, Whole-Time Director; Mr. P K X Thomas, CTO of the company. I now hand the conference over to Mr. S Swaminathan. Thank you and over to you, sir.
Thank you. Just a word of caution before we start, I'm actually at an airport and is occasionally I go on (inaudible) because announcements have been made in the airport.
I think it's been extraordinarily good year, thanks to that South African contract that we won last year. And so where we were about six, seven years ago to come to this stage where we have crossed INR100 crores level I think it's a big deal. And I'm grateful to all of our colleagues for making this happen.
And given the -- As I
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