Ceinsys Tech — Q4 FY25 earnings call

Call held 7 May 2025

Management summary

Ceinsys Tech reported strong financial performance in Q4 and FY25, driven by successful project execution and increased focus on high-value technology solutions. Operational revenues grew significantly, with EBITDA and net profit showing robust year-on-year increases. The company's order book remains healthy, and strategic initiatives like the Allygrow Technologies amalgamation and new board appointments are set to support future international growth and operational efficiency.

Highlights

  • Q4 FY25 operational revenues of INR 142 crore, up 81.9% YoY.

  • Q4 FY25 EBITDA of INR 27 crore, up 116% YoY, with margins at 18.82%.

  • FY25 operational revenues of INR 418 crores, up 65% YoY.

  • FY25 EBITDA of INR 78 crores, up 77% YoY, with margins at 18.63%.

  • Total order book as of March 31, 2025, stands at INR 1,197 crores.

  • Technology Solutions' share of total turnover increased from 24% to 51% in FY25.

  • Board recommended a higher dividend of 35% for FY25.

  • Current ratio improved from 2.6 (FY24) to 2.82 (FY25).

Key financials

2 periods

Q4 FY25

  • Operational Revenue
    ₹142 Cr
    YoY +81.9%
  • EBITDA
    ₹27 Cr
    YoY +116%
  • EBITDA Margin
    18.8%
  • Net Profit
    ₹22 Cr
    YoY +89%
  • PAT Margin
    15.4%

FY25

  • Operational Revenue
    ₹418 Cr
    YoY +65%
  • EBITDA
    ₹78 Cr
    YoY +77%
  • EBITDA Margin
    18.6%
  • Net Profit
    ₹63 Cr
    YoY +81%
  • PAT Margin
    15.1%
  • Allygrow Revenue Contribution
    ₹83 Cr
  • Allygrow Profit Contribution
    ₹10 Cr
  • Technology Solutions Projects
    ₹213 Cr
    YoY +255%
  • Technology Solutions Share of Turnover
    51%
  • Employee Cost as % of Revenue
    30%
  • Turnover per Employee
    3.34 Mn
  • Current Ratio
    2.82
  • Turnover to Net Working Capital Ratio
    4.4×

What they filed

Q1 FY27: revenue up 0.6%, net profit down 3.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue90 112 142 157 163 +81%170 +52%171 +20%158 +1%
EBITDA17 21 27 30 36 +112%40 +90%40 +48%38 +27%
Net profit12 18 22 32 26 +117%39 +117%37 +68%31 −3%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,197 Cr

as of 2025-03-31 quantified

Execution

Average execution would be between 18 to 24 months, with majority between 18 to 20 months. A small portion (INR 65-70 crores) is for 3-4 years.

Composition

Mix 2 segments
  • Water domain 85.1%
  • Geospatial enterprise solutions services 14.9%

Share of order book by segment

Pipeline

deal pipeline tcv

Qualified bid pipeline for new orders

The order book of INR 1,197 crores excludes the Allygrow annual contract. While new orders added this quarter were less than consumption, management sees no dearth of opportunities and expects significant conversions from the current bid pipeline.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Business development in U.S. market (expensed in P&L) ₹12 Cr
    We have invested around INR 12 crores towards the business development for expansion into U.S. market, and this has been expensed out in the profit loss account for the year 2024-2025.
  • M&A Allygrow Technologies Private Limited Merger · Integrated

    Streamlines reporting, enhances capabilities into manufacturing technology and mobility engineering solutions.

    Allygrow contributed INR 83 crores in revenue and INR 10 crores in profit to FY25 results.

    The results reflect the amalgamation of 100% subsidiary, Allygrow Technologies Private Limited, which has been allowed to be amalgamated with effect from 1st, April 2024 as per the recent order of honorable NCLT. While ATPL was already previously consolidated, the merger streamlines the reporting.
  • M&A Undisclosed M&A targets Acquisition · Pending regulatory

    For both customer acquisition and competence acquisition.

    So yes, we have the two targets which are which have been discussed in the past. And I had also mentioned that we expect that to the due diligence and all the procedure to be completed in next by April, May. So we are on the process. Hopefully, in next one or two months, we will be able to get some headway on those two targets, which we are actually working on.
  • Liquidity Liquidity disclosed Investable surplus of INR 105 crore for inorganic opportunities and operational cash surplus of INR 45 crore.
    As of year-end, it holds an investable surplus of around INR105 crore for inorganic opportunities along with our operational cash surplus of INR 45 crore.

Guidance & targets

Order Book

  • Order Book Inflow Order Book · every quarter · Medium confidence INR 300-400 crores
    So typically, our target is to achieve INR 300 crores, INR 400 crores worth of order book every quarter, and it depends on which opportunities are available.

    — Kaushik Khona

What to watch in Q1 FY26

M&A Target Progress

Next 1-2 months
Current Two targets in due diligence
Target Headway/announcement on at least one target

Why it matters

Indicates progress on inorganic growth strategy for customer acquisition and competence.

Hopefully, in next one or two months, we will be able to get some headway on those two targets, which we are actually working on.

Risks & concerns

  • Execution delays for river linking project due to rainy season

    medium

    Late order receipt and upcoming rainy season could cause compounding delays for survey and soil testing in the river linking project.

    Management acknowledged

Q&A highlights

6 direct
Order Book Decline & JJM Impact Direct
So in the order book, we have, earlier, when we talked about the order book, we are talking of only the geospatial order book. And we have order book around INR 140 crore for the mobility business, which we had not counted even at the time of which was mentioned during the call. So I think that order book has not reduced.

Clarified that the perceived order book decline was due to a change in reporting scope (excluding Allygrow's annual contract) rather than an actual reduction, and addressed concerns about the impact of Jal Jeevan Mission allocation changes.

Asked by Rohit Singh

Trade Receivables & Cash Flow Direct
So one thing, let me clarify that the trade receivables also include unbilled revenues. And actually, I am happy to report that as on 31st of March 2025, our debtors have actually gone down. So when we talk about the total debtors, the trade receivables, which is we are talking of INR 253 crores, this includes the unbilled amount of INR 135 crores, while the debtors have already come down as compared to the previous year.

Addressed concerns about cash flow and rising trade receivables by clarifying that total debtors had decreased and a significant portion was unbilled revenue, not overdue payments, mitigating a potential red flag.

Asked by Rohit Singh

Vidarbha River Linking Project Execution Direct
So the Vidarbha project, the actual letter of allotment was granted on January 13, although the award was provided in the month of November. So there was a delay of two months from the government to give us the actual letter of award. And after the letter of award only, the work begins. So since then, we have made a considerable progress.

Provided a detailed update on a major project, explaining initial government-side delays but confirming that execution is now on track with significant progress and no anticipated further delays.

Asked by Rohit Singh

ESOP Cancellations and Management Transition Direct
The third portion which we referred was the ESOPs, which I was supposed to get and these were supposed to be over a period of time. However, as you would see, we have a new CEO coming up by the end of this year and it will be unfair on company and investors that exiting CEO takes all the ESOPs and walks out. Therefore, voluntarily, I said, I will surrender this ESOPs. Rightfully, they should go to the new CEO, not the CEO which is exiting.

Clarified the reasons behind significant ESOP cancellations, particularly Mr. Kamat's voluntary surrender for the incoming CEO, providing transparency on senior leadership compensation and transition.

Asked by Pranay

M&A Strategy and Pipeline Direct
So yes, we have the two targets which are which have been discussed in the past. And I had also mentioned that we expect that to the due diligence and all the procedure to be completed in next by April, May. So we are on the process. Hopefully, in next one or two months, we will be able to get some headway on those two targets, which we are actually working on.

Confirmed ongoing progress on two M&A targets, indicating active pursuit of inorganic growth for both customer acquisition and competence enhancement.

Asked by Nikhil Poptani

Bifurcation of Technology and Geospatial Segments Partial
The technology and geospatial is not divided at a project level, it cannot be. Each project will have a portion of a technology element and a portion of a geospatial element. Our intent is to reduce geospatial content because it's a low margin business and increase technology portion because it's a high margin business.

Clarified the company's internal segmentation logic, explaining that projects are often a mix of technology and geospatial elements, with a strategic focus on increasing higher-margin technology content.

Asked by Midhun James

Data Center Opportunity Direct
No, I think last meeting we said in terms of data center, we are at least right now putting those plants on the back burner. If we decide to move forward, we will definitely come back and improve. But right now, we are trying planning to put them on back burner because there are more orders and more business being pursued with the existing segments.

Indicated a strategic reprioritization, with data center plans currently on hold to focus resources on more immediate opportunities within existing segments.

Asked by Ashish Soni

3 min read 8 chapters

Detailed narrative

Strong Financial Performance in FY25

Ceinsys Tech delivered robust financial results for FY25, with operational revenues reaching INR 418 crores, marking a 65% year-on-year growth. EBITDA increased by 77% to INR 78 crores, achieving a margin of 18.63%. Net profit surged by 81% to INR 63 crores, with a PAT margin of 15.12%, driven by successful project execution and improved operational efficiency.

Strategic Shift Towards Technology Solutions

The company's strategic focus on high-value digital initiatives is evident, with technology solutions projects increasing 3.5-fold to INR 213 crores in FY25, up from INR 60 crores last year. This segment now contributes 51% of the total turnover, a significant rise from 24% in the previous year, indicating a successful pivot towards higher-margin offerings.

Healthy Order Book and Pipeline Visibility

As of March 31, 2025, the total order book stands at INR 1,197 crores, primarily comprising INR 1,019 crores from the water domain and INR 178 crores from geospatial enterprise solutions. The company aims to secure INR 300-400 crores worth of new orders each quarter and currently has a bid pipeline of approximately INR 355 crores, with expectations to convert over INR 280 crores from two large projects soon.

Operational Efficiency and Liquidity Improvement

Ceinsys Tech demonstrated enhanced operational efficiency, reflected in the current ratio improving from 2.6 to 2.82 and the turnover to net working capital ratio increasing from 3.2x to 4.4x in FY25. Employee costs as a percentage of revenue declined from 35% to 30%, and turnover per employee rose from 2.29 million to 3.34 million, contributing to stronger liquidity and better capital utilization.

Key Appointments and International Growth Focus

The Board appointed industry veteran Mr. Vanish Moorthy as an Additional Director to drive international business, and Mr. K.P. Surej as CEO Designate and Additional Director, who will lead the entire company, including India operations. This move signals a strategic intent for international expansion, particularly for technology solutions, with initial progress already seen through a large contract and ongoing pipeline development in FY26.

Management Transition and ESOP Adjustments

In a significant management transition, Mr. Prashant Kamat voluntarily surrendered his ESOPs, stating they should rightfully go to the incoming CEO, Mr. K.P. Surej. Other ESOP cancellations were attributed to a resignation and performance-linked conditions not being met. The company plans to introduce new ESOP schemes for the new CEO and future hires, ensuring continued talent motivation.

M&A and Data Center Strategy

The company is actively pursuing inorganic growth, with two M&A targets currently in due diligence, aiming for both customer acquisition and competence enhancement. However, plans for a data center opportunity have been put on the back burner to prioritize existing segments that offer more immediate orders and business, reflecting a focused approach to resource allocation.

Vidarbha River Linking Project Update

The Vidarbha river linking project, valued at INR 381 crore, experienced a two-month delay in the letter of allotment from the government. However, execution commenced on February 1, 2025, and is progressing as per the project charter. The majority of the aerial lidar survey's first link is complete, with flying expected to finish by May 31, 2025, and data processing by June 30, 2025, with no further delays anticipated from the company's end.

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