C.E. Info Systems Limited

C.E. Info System reported a Q3 FY25 revenue of ₹115 crores, marking a 25% year-on-year growth. For the first nine months of FY25, revenue reached ₹320 crores, growing 17% YoY. EBITDA for Q3 FY25 stood at ₹42 crores with a 36% margin, a slight decrease from 39% in Q3 FY24. The nine-month EBITDA was ₹122 crores at a 38% margin, compared to ₹114 crores at 42% in the prior year. PAT for the nine-month period was ₹99 crores, up from ₹96 crores in 9M FY24.

The Consumer Tech and Enterprise (C&E) segment was a significant growth driver, with revenue surging 39% year-on-year to ₹65 crores in Q3 FY25. The Automotive and Mobility (A&M) segment grew 9% YoY to ₹49 crores, outperforming the overall auto industry. Over the first nine months, A&M revenue grew 16% YoY, with the number of licenses increasing by 23%. The Map-led business demonstrated a strong 33% growth in Q3 FY25, while subscription services across the company grew 31% YoY.

A key strategic milestone in Q3 FY25 was the successful operationalization of the joint venture with Hyundai Autoever in Indonesia. This JV is expected to contribute revenue from Q1 or Q2 of the next financial year and fully ramp up over 2-3 years. The company also noted significant deal wins across various sectors, including a major global social media network, quick commerce, and BFSI, though specific details were withheld due to NDAs.

The IoT-led business experienced a slower growth of 4% YoY in Q3 FY25, primarily due to delays in some anticipated large projects that were postponed to the next financial year. This impacted hardware sales, which did not pick up as expected. However, the company emphasized its focus on building the IoT business with higher-margin subscription revenue, which grew 31% YoY and resulted in the IoT-led EBITDA margin improving from 8% in 9M FY24 to 12% in 9M FY25.

The company is increasingly pursuing government-led GIS projects, recognizing them as strategic opportunities despite lower margins. Management acknowledged that government work typically has lower margins than corporate or automotive sectors, which can draw down the overall company margin. However, they are confident in getting paid, with government receivables generally under 100 days, and expect government projects to constitute a double-digit percentage of FY25 revenue, though less than 20%.

Management reiterated its confidence in achieving the full-year FY25 revenue growth guidance of 25%, despite the 17% growth observed in the first nine months. The company also maintained its long-term target of achieving ₹1,000 crores in revenue by FY28, based on a sustained 25% growth rate. They emphasized strong execution and a capable team as key enablers for these targets.