Ksolves India Limited — Interim / Quarterly Report 2024

Jan 18, 2024

Date: January 18, 2024

To

Listing Compliance Listing Compliance National Stock Exchange of India Ltd. The Bombay Stock Exchange Limited, Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (E) Dalal Street, Mumbai – 400051 Mumbai – 400 001.

Subject : Key Highlights and Management Commentary on Financials for Q3 FY 2023-24.

Ref : Reg. 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

BSE Scrip Code: 543599; NSE Symbol; KSOLVES; ISIN: INE0D6I01015

Dear Sir/Madam

Pursuant to the above-captioned subject, please find enclosed herewith the Key Highlights and Management Commentary on financials for Q3 FY 2023-24.

A copy of the above is being also made available on the Company’s website i.e., www.ksolves.com

This is for your information and records.

For Ksolves India Limited

MANISHA KIDE Digitally signed by MANISHA KIDE Date: 2024.01.18 16:07:53 +05'30'

Manisha Kide

Company Secretary & Compliance Officer

Key Highlights of Financial Results: Q3 ’FY23-24:

• Consolidated Revenue from Operations increased 38.3% YoY (28.42 cr vs 20.55 cr)

• Consolidated Revenue from Operations increased 9.4% QoQ (28.42 cr vs 25.98 cr)

• Profit After Tax (PAT) increased 44.7% YoY (8.94 cr vs 6.18 cr)

• Profit After Tax (PAT) increased 8.6% QoQ (8.94 cr vs 8.23 cr)

• Declared 2[nd] Interim Dividend of Rs. 7.50 per share is declared.

• Q3 Earnings per Share (EPS) stands at Rs. 7.54, up from Rs. 5.21 in the same quarter last year.

Management Commentary:

Growth and Expansion:

• 100+ Happy Clients across 25+ countries with top-5 client’s contribution of 40% and top-10 at 57%.

• Focus remained on generating revenue per employee by enhancing technology mix and billing rates.

• Headcount increased to 455 along with maximum resource utilization.

• Continued hiring of laterals and freshers from campus recruitment, with a focus on their training to funnel the business opportunity pipeline in Generative AI, Big Data, Salesforce, DevOps, Red Hat OpenShift, Kubernetes, Microservices, Odoo, and Automation, etc.

• Initiated performance testing vertical, improving the project monitoring, control performance, and quality delivery.

Investments for Sustained Growth and Business Updates:

• Few recent business wins augur well for future trajectory.

• Started working with a Fortune 500 Telecom company in the AI/ML project.

• Odoo Team reached 100+ members courtesy number of long-term projects.

• Started delivering the newly launched product ‘Lead Manager Ninja’.

• The company continues to have a pipeline of leads to sustain Industry growth.

• Company remains committed to work in asset light model and return large chunk of free cashflow generated via dividend/buybacks. Also increased company size may necessitate corporate actions in near term to enhance book equity.

• Contrary to perception of a section of investor community, business prospects are agnostic to capital hence presence or lack of capital has no bearing especially due to no near-term intent of inorganic growth as well as availability of financial headroom from zero debt. Company has high visibility on business momentum and cashflow and keeps a close eye on working capital requirements.

• Ksolves currently works as 100% offshoring model. Its tech stack is skewed towards niche technologies in AI/ML space.

• Won the ‘Indian MSME of the Year Award 2023’, recognizing us as the best Service provider at the ET MSME Awards 2023 by Economic Times.

• Engaged into various investor catch-up focusing on attracting long terms institutional clients. Such engagement works both ways where wider investor community get to know company better as well as company tries to pick good suggestions from existing and prospective investor base.

DISCLAIMER: This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Ksolves India Ltd (“Ksolves”, "Company“), nor shall part, or all, of this document form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities of the Company. This document is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose. The information in this document is being provided by the Company and is subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This document contains statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is a forward looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the document. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.