InfoBeans Technologies Limited

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To,	Date: 06th May, 2025
The Listing and Compliance Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G block, Bandra Kurla Complex, Bandra East, Mumbai – 400051 Script Code: SM – INFOBEAN	The Manager, Listing Dept. BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 MH- IN Scrip Code: 543644

Subject: Transcripts of the earnings call conducted after the Meeting of Board of directors on Friday, 02[nd] May, 2025 at 05:00 P.M. (IST)

Please find enclosed the transcripts of the earnings call conducted after the Board meeting held on 02[nd] May, 2025 for your information and records.

This information will also be hosted on the Company’s website, at https://www.infobeans.com/investors/

Thanking you, Yours Faithfully For InfoBeans Technologies Ltd

Digitally signed by Surbhi Jain Surbhi Jain Date: 2025.05.06 17:08:45 +05'30'

Surbhi Jain Company Secretary & Compliance Officer

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Mar 31, 2025, Q4FY25 Earnings Conference Call

Management

Avinash Sethi, Co-founder

Siddharth Sethi, Co-founder

Krunal Sanghvi, Associate Director-Finance

Surbhi Jain, Company Secretary & Compliance Officer

Surbhi Jain

Good afternoon, ladies and gentlemen. Welcome, everyone, and thanks for joining this Q4 FY 24-25 Earnings Call for InfoBeans Technologies Limited. The results are available on the stock exchange. In case anyone does not have a copy of the same, please do write to us, and we will be happy to send it to you. To take us through the results of this quarter, we have with us two Co-Founder, Mr. Avinash Sethi and Mr. Siddharth Sethi. We will be starting the call with a brief overview of the company's performance, and then we will allow the Q&A session. Kindly ask your questions by raising your hand after the brief overview by Avinash is over, and then we will address all the questions one by one. I would like to remind you all that everything said on this call that reflects any outlook for the future can be considered as a forward-looking statement and must be used in conjunction with the uncertainty and risks that we face. These uncertainties and risks are included, but not limited to what we have mentioned in the prospectus filed with the SEBI and the subsequent annual report. With that said note, I turn over the call to Mr. Avinash Sethi. Over to you, Avinash.

Avinash Sethi

Thank you Surbhi. Thank you everybody for joining this call. We appreciate your interest in InfoBeans. This is a quick summary. I think a few slides in the deck would be particularly for people who have joined the call for the first time, just to tell them about what InfoBeans is. We are a company founded in 2000, 1400 people strong team focusing on AI-led data engineering transformation. We have so many locations worldwide. Most of the offices are in India. Delivery offices are here in Indore, Pune, Chennai, Bengaluru. Offices in Frankfurt, Dubai and Silicon Valley in New York are sales offices. One of the founders lives in the US, in Silicon Valley.

This is a quick roadmap of the company. We started in 2000, had another office in Pune in 2004, then we opened up in the US. 2007 revenue was 2.4 crores, which jumped to almost 10 times in 2015, which jumped to 399 crores in 2023 and so on. We are a public company listed on NSE and BSE from 2017. Acquired our first company in the US and called as Philosophy Group and then acquired our second company in 2021 which is in Pune. It used to be called Eternus Solutions. It is now called InfoBeans Cloud Tech which is going to be merged into parent company, InfoBeans Technologies.

We also onboarded Phaneesh Murthy as Advisor to the Board last year. And then we have onboarded Harmeet Bhatia as a CRO early this year.

Quick numbers and highlights here. As a company, we focus on two important principles. One is to build a strong relationship with our customers, which is reflected in 95% of our existing customers' existing relationships. And the second core principle is to focus on large enterprises, so that we continue to expand into those accounts and grow our wallet share for each one of them. Here we have a long list of enterprise clients, larger ones which are 32 in number. That includes Fortune 500 companies and businesses which are a billion dollar plus in revenue size. Another relationship aspect is with the team members. Out of 1400 team members, 166 are the ones who are with InfoBeans for more than 5 years. And many of them are with InfoBeans for more than 10 years.

Quick snapshot on the financial side. 410 crores is the top line including other income, EBITDA is 83 crores, PAT is 38 crores, Cash and cash equivalent including AR is 256. If I remove account receivables of 86, then it becomes 170 crores of cash which is mostly parked as treasury into bonds and liquid funds. Revenue CAGR is 24%.

Several awards, certifications and partnerships with various players out there. These are the core service offerings which can be segregated into 5 verticals. Enterprise application development, modernization, user experience and design, rapid prototyping applications, AI-enabled solutions, ServiceNow, Salesforce, platform-based solutions, and automation around CI, CD, RPA, DevOps.

We appointed the sales leaders in Canada and Nordic region to expand our sales presence in multiple geographies, apart from US, Middle East and Germany so that we’ll expand our client access. Got one AI project which is for a standards organization from Canada. Onboarded one large enterprise client this quarter. New leadership, we have onboarded Opal Perry. I'll put it on the next slide. We have been consecutively awarded as a great place to work, this is 9th time in a row. And also awarded a green building IT park project by the MP government. We'll talk about it in later slides. We do our CSR activity through InfoBeans Foundation. And that was awarded by CII for impactful work. We also plant trees on our team members' birthdays. The count is more than 2,000.

This is a slide on Opal. Opal is a Chief Data and Technology Officer from EasyJet based in London. She is an American but currently posted in London. She also headed technology divisions of all state, Hertz and Pods in the past. She brings new age technological understanding in the business and will help strengthen our vision to play a significant role in digital transformation efforts. Our core team, all the founders, two of us are here. Mitesh is in the U.S. And the Independent Directors include Opal as a new member.

Next, Sales team and client success team are very important go-getters of the world to generate business for us and also expand our existing client relationships.

Most of them are with us for a very, very long time.

Next, please. Again, the core team on the delivery side and the people side. Again, superstars in terms of building the business, building the organization and delivering excellence for our customers.

Next, please. These are the key customers who have been with us for an average tenure of more than nine years. And there are various bigger names that you can see. Some names we cannot

mention because of the NDAs that we have with the customers. But each one of them is a very strong relationship that we cherish. And we continue to build on those relationships.

Some key metrics which we usually share annually. Between 24 to 25, fortune 500 count remains the same. Enterprise customers have increased from 15 to 18. Clients which have built more than a million dollars is now 12. And clients which have built more than a crore at least is 70 now. Our share of revenue from existing clients has increased to 95% because our clients are also growing with us. We have an active effort to reduce the long tail of clients which are not growing.

Next, please. Jumping on to the financials, this is a quarterly update. March quarter number jumped from 100 crores to 107 as compared to last year, March. EBITDA from 21 to 23 and PAT from 9 to 10. On constant currency terms, we have grown by 4%. If I look at last quarter, which was December 24, the revenue growth is 8%. EBITDA is 32% and PAT is 49%. So pretty decent quarter this time.

Next, please. On a yearly basis, the numbers are far better, at least on the margin side. If I look at FY25, the revenue hits 410 crores, which was 384 last year. EBITDA is 83, which was 67. CFAT is a number that we wanted to publish for the benefit of the investors, telling them that, you know, even though the PAT number is low, but the cash accumulated in the business is on the higher side, it is increasing year after year. The PAT is low because of the amortization and depreciation of the intangible assets that have been added onto the books because of the acquisitions that we have done in the past. So essentially, we generate cash and we could see the cash addition in the cash number every year and every quarter. On constant currency terms, we have grown 5.5% annually.

A little bit more detail here, the expenditure is trying to be, we are trying to be more prudent and trying to control the expense by applying a lot of cost optimization measures. And therefore, the increase in revenue helps in increasing EBITDA and PAT numbers.

Next Please. Same story on the annual side, you know, the demand has improved, the expenses are tightly controlled and therefore, the EBITDA margin has jumped from 17 to 20 on an annual basis. And if you look at the PAT margins, it has jumped from 6 to 9%.

On the non-current asset, there is an impairment of goodwill of acquired assets and also the amortization of intangible assets as well. On the current assets, the increase is because of the profits added to the books. On the equity and liabilities, there is a reduction in current liability because of the contingent consideration that was supposed to be paid to the founders of the Eternus Solutions which did not materialize because they did not meet the numbers and they also exited the company earlier than the out-of-period. So that has reduced the liabilities part.

We talked about the impairment, there is a more detail here, philosophy group 0.8 crore, 80 lakhs towards the reduction in intangible assets, Eternus Solutions 22.6 crores towards the impairment of intangible assets and reduction in contingent liability of about 22 crores because the founders were not eligible for the earnout due on March 2025.

This is the InfoBeans partner program that we initiated in 2020, this is the batch and this is coming to an end now. So the last installment of 86,550 shares has been allotted to 36 members and the total number of options granted till now is 5,73,000 which is a little over 2 percent, I think little more than 2 percent of total equity of the company.

Annual dividend of 1 rupee is announced by the board today and it will be up for the shareholder approval in the AGM, it comes to about 6.3 percent of PAT for this fiscal.

Revenue breakup for segment, digital transformation, product engineering, more or less similar, 52 percent product engineering, 48 percent digital transformation. And InfoBeans cloud tech revenue is decreasing in the parent organization in the total pie. A significant growth in the European market and also decent growth in UAE market for us and thus this has reflected in reduction, increase in share of Europe and UAE and reduction of USA in the total pie when I break up the revenue by geography which is a good sign in a sense because US seems to be running in certain chaos and might be headed towards a recession but with the de-risking that we have been able to achieve in the last couple of years, we are in a good position.

A quick check on the performance indicators, the revenue has been growing from 196 crores to 410 crores, EBITDA from 54 to 83, PAT from 37 to 38, there is a significant drop of PAT in FY 23 and FY 24 because of the increasing cost but we have been able to recover it eventually and ROE, ROC is decreasing because we have large cash reserves. We have been unable to deploy it for in-organic growth because of a lack of right opportunity and a right candidate in front of us.

Next please. Great place to work certification, 9th year in a row and there are many more such awards we get, we also recently received an award on best companies to work for women in India and this was the third time in a row, we are also dream companies to work for and so on.

This is an interesting update, we have been awarded an IT park project by the MP government, 3 acres of land is offered for a very nominal lease of 9 lakh rupees a year for 50 years and the idea is to build an IT park or a building which is about 4 lakh square feet.

InfoBeans is tied up with a consortium, formed a consortium with a real estate developer and an investor to execute this project where InfoBeans holds 51% stake, it is as we expect to move this office from the current Crystal IT park office to this building and we should be able to consume about 2 lakh square feet in a 5 year period which is about half of the building and this is going to be green building, state of the art campus that InfoBeans wants to create to show a sign of strength, create the credibility in the minds of the buyers and also create a wow experience for the team members who work from there every day.

So it seems that when we moved Crystal IT park in 2014, we have been able to generate a great amount of goodwill in the minds of our stakeholders, not only the investors but the clients as well as the team members. People love to work from our office and that is what we want to enhance and create a better version of it for a very long duration. The capital burden for InfoBeans is going to be about 30 crores which is not a significant capital infusion looking at the size of our balance sheet and rest will be through debt because the land can be put as collateral for generating about 150 crores of debt to build this building. And we did another analysis which says that the kind of rent that we are paying today at Crystal IT park, if we continue to pay and have an increment built in, it will take 11 years to recover the cost. So we are better off if we are looking at a building which is allowing us to take an occupancy of 50 years. So that makes a lot of economic sense as well.

Next please. CSR award that we talked about, CII conferred the award to us. For those who are not aware, let me also tell you, we run under InfoBeans Foundation, we run an annual program on software development skills. It is called ITEP, Information Technology Excellence Program. Here we train graduating students in any stream, be it B.Com or B.A or B.B.A and convert them into corporate ready software professionals. And after the end of the course, one year rigorous course which is like 9 hours a day, 6 days a week for the entire year, after that program, the students really get trained to be ready for the corporate and they get placed successfully. Our 90% success rate in placing these students. We started with 20 students. Now we have 280

students getting trained simultaneously . And this is for underprivileged students. Their family income has to be below 3 lakh rupees, annual income.

Next please. We also have a program that we signed up with where we plant trees on the birthdays of every team member. We have done more than 2,000 trees because it is about 18 months now. This is also geotagged so people can really look at those pictures and see them growing year after year.

A quick market data snapshot. Promoters have 74% stake, 26% of the public, face value was rupees 10. Incidentally, we are in the 8th anniversary of public listing. On 2nd May of 2017, we got listed on the NSE. The IPO price was 58 rupees. And today at the market price of 291, the market cap is 709 crores. And yeah, so this is where we are. This is 31st March. Yeah. That is pretty much it.

Thank you very much. We are open to questions and answers and I will let Surbhi direct this

Krunal

Thank you, Avinash. Participants, we will now begin the Q&A session. If you have a question, please use the raise hand feature and we will unmute you when it is your turn. We kindly request to limit yourself to one question at a time. If you have a follow-up question or additional question, you can rejoin the queue and we will probably come back to you as the time allows.

So, the first question comes from the line of Devashish Majumdar. So, it is Rupesh Tatiya. Rupesh, please unmute yourself and ask your question.

Rupesh Tatiya

Yeah. So, congratulations team. I think after several quarters, I think we have crossed the 100 crore operating revenue kind of benchmark. So, maybe if you can give some color on how the next financial year will look like. I mean, I know the US market is extremely uncertain, but how will that look? And then is there a way that Europe, Middle East, some of these markets can make up some shortfall if they are from the US. And then at least we can expect, let us say, mid-teen kind of revenue growth in FY26. That is one. And then the second is this, I saw that the goodwill and the intangible asset I think was 135 crore last year. The number in the March 25

balance sheet is 100 crore. So, would there be a material change in the depreciation amortization that will charge in FY26? I mean, what would we, can you give some ballpark range on that? So, let us start with these two and then I will come back in the queue.

Avinash

Thank you, Rupesh. I think if you look at the last three, four quarters, we are inching towards better revenue numbers as well as better margins. So, clearly there are some things that are working in our favor. On the market, on the macro side, I think when I look at, we are still a micro company, so macro may or may not really have a lot of impact. But when I look at our current customers and the kind of traction that we are seeing in each of those bigger accounts, I think we are very positive in terms of the growth momentum. This should continue and obviously will make every effort to increase. If you look, we are also investing on the sales side. Harmeet came in in January, there are two more people that have signed up that are already on rolls, one in Canada, one in the Nordic region.

So, we are investing in all directions and also trying to focus on core skills, core areas so that the outcome is much better. Plus, we also optimize in terms of margin improvements. So, all things are starting to fall in place. So, that is very, very good news. On the depreciation, you are right, with the reduction in liabilities and impairment, the asset value has reduced by that extent, which will also reduce the impairment, which will reduce the depreciation.

Krunal

So, I think, Avinash, the total impairment is for goodwill. So, it will not have any impact on the future.

Avinash

There is an intangible asset also, right?

Krunal

Yes. So, but that is only 77 lakhs. So, that will not contribute much to the reduction of depreciation. So, our major head goes to the impairment of goodwill.

Rupesh Tatiya

So, maybe let me clarify the question. So, March 24, full year annual accounts, depreciation amortization was 29.39 crore. And in March 25, it is 26.56 crore. So, roughly it went from 29 crore to 26 crore. Then the intangible and goodwill has reduced quite substantially by 35 crore. So, this 26 crore that we see in March 25, would it look like let us say 20 crore? Is that a fair estimate?

Krunal

So, of the total reduction in the intangibles, 10 crore is for the routine depreciation and amortization and the balance 22 crores is for impairment of goodwill.

Avinash

So, goodwill is not depreciated. So, it will probably progress in the same amount. So, I would say my guess is it will be less than 26 definitely. But whether it will go to 20, I doubt. So, yeah, I think that is the estimate that I can give you right away, but we will probably message you in more detail as to what is the specifics of it.

Krunal

And it will be close to 22 crores.

Rupesh

Yeah, I will come back in the queue. You said one. So, yeah

Krunal

Yeah. So, there is a net reduction of 38 people. So, we are at 1360 is the right number as of March 31st.

Dheeraj

Sure. Thank you.

Siddharth

The idea also is to use AI extensively internally so that we can do a lot more with a lot less people. Not that we're not going to hire, but we're going to increase our productivity significantly using AI. So, AI used in coding, AI used in internal processes, that is going to be a very big push. It has been a push for the past couple of quarters, and it will continue to be a very, very big push in the next few quarters to come

Dheeraj

Okay, so the customer which we got, that was the first active customer, or you mentioned two, we have already deployed it for two customers

Siddharth

Yeah, that was the first active customer

Dheeraj

Okay, Thank you.

Avinash

Just to add, we have two more customers on the AI piece. Quilo is one, so we have one customer on Quilo. But there are other pieces that we're doing with other clients, where there's an AI piece involved. And we are currently on three projects on AI right now. These are all

smaller ones, but you know, these are all paid projects. So, that's a good breakthrough in that space that we've been trying to purchase.

Dheeraj

Great, great. Thank you for the answers.

Krunal

So the next question comes from the line of Sashi Bhushana. So Sashi, please unmute yourself and come up with your question.

Avinash

Hi Sashi. Can you hear us?

Krunal

I think we have to take the other one. So Rupesh, you can come up with your follow-up question. Please unmute yourself and ask your question.

Rupesh

Yeah. Hi, am I audible?

Avinash

Yeah

Rupesh

Yeah. So my first question is this IT Park project, 30 crore capital investment. So that may be, I didn't fully understand how it will benefit us. I mean, I understand you are one of the big

companies in Indore and it's a good thing you are doing for the city and all of that. I understand, but I didn't understand financially how it will benefit. So if you can give some color around that, that is one. And then the second is what is our utilization level at this and what is the hiring budget for financial year 26?

Avinash

Phaneesh Murthy on board, it's not easy to have a person like him, you know, sign up for a company like us, we are still a micro company. And Phaneesh has played with companies like iGate, CoForge, which are, you know, among the top 10 companies in India. So if we are able to get that person on board, obviously, there is something that we're doing, right? If we are able to, you know, drive back into our margins, we're able to optimize, we're doing AI stuff, a lot of these things that are, you know, trying to do, now, which one is going to be a game changer, we don't know, when, we don't know. So it's very difficult to point out, okay, this is the moment of Nirvana, and all of a sudden, after this, we will turn into multi-millionaire, you know, multi-million business and so on. So that's where you, the kind of question that you're asking needs a lot of detailed discussions. You can't just talk a strategy in a minute or two minutes.

Dilip

I'll reach out, I'll reach out to you. Yeah, yeah.

Avinash

Let's spend some time.

Dilip

One curious question, why have you chosen Nordic and Canada, Nordic is notoriously difficult to make an entry. So I know you already are good in, you know, Germany and US, I'm assuming. And at this kind of revenue, do you think you need to spread yourself to Nordic? What is the thought process in Nordic and Canada?

Avinash

See, Canada is working out well for us, we got two, three good customers in the Canadian market, the AI project started in Canada. So we have all the imperative to, you know, figure out any multiplication opportunity there. Nordics also is a connection from Germany. The senior sales leaders that we have in Germany, know this person well, and that's where we are looking at that. So we are looking at the individual, not the geography that is where the value should come. We are not setting up an office there, it's a person working from there. And you are going to pitch the whole service line in Nordic and Canada, or is it like some specific area? No, it is a very narrow service line, particularly in Nordics, it is ServiceNow, in Canada it is, you know, standards development organizations, particularly on the AI side.

Dilip

Sure, sure. I will certainly circle back to you and after the call, and I would be ready.

Avinash

And please come over to the call, we will really have a good discussion.

Dilip

Great, great. No, all the hygiene points are ticked off. So I have no questions on the hygiene. So I understand that you have got a lot of things going for you. And that's the reason I'm talking to you, right? So but still, the growth is the only thing, it's not a hygiene, it's a matter of, you know, the what is there in the arrowhead. That's what true for all IT companies from India and true for us also. So that's one thing I want to understand in detail. So yeah, Indore will be nice, Indore will be nice. Thank you. Thank you. Thank you very much.

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Avinash

Yes. Thank you Dilip.

Krunal

So over to you, Surbhi, for the closing note.

Surbhi

Thank you everyone for joining this earnings call. And now you may disconnect your lines.

Avinash & Siddharth

Thank you everyone. Thank you for attending.

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InfoBeans Technologies Limited — Call Transcript 2025

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