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Nagarro SE Interim / Quarterly Report 2025
719_10-q_2025-05-14_ed94e651-2970-4681-ac32-e3ccc4791865.pdf
Interim / Quarterly Report
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Up across together
Q1 Group quarterly statement for the period ended March 31, 2025
nagarro
The terms "Nagarro", "company", "the group" and "we" in this report refer to "Nagarro SE and its subsidiaries".
G3
Nagarro Group
Key figures
| Q1 | Q1 | YoY | Q4 | QoQ | |
|---|---|---|---|---|---|
| Three-month period ended March 31 | 2025 | 2024 | Change | 2024 | Change |
| kEUR | kEUR | % | kEUR | % | |
| Revenue | 246,884 | 238,294 | 3.6% | 246,630 | 0.1% |
| Cost of revenues | 171,408 | 164,741 | 4.0% | 174,412 | -1.7% |
| Gross profit | 75,540 | 73,611 | 2.6% | 72,291 | 4.5% |
| Adjusted EBITDA | 30,224 | 39,162 | -22.8% | 38,187 | -20.9% |
| Revenue by geography | |||||
| North America | 85,025 | 85,266 | -0.3% | 86,971 | -2.2% |
| Central Europe | 73,827 | 68,369 | 8.0% | 72,481 | 1.9% |
| Rest of World | 57,707 | 55,643 | 3.7% | 57,055 | 1.1% |
| Rest of Europe | 30,326 | 29,017 | 4.5% | 30,123 | 0.7% |
| Revenue by country | |||||
| Germany | 58,027 | 51,881 | 11.8% | 56,816 | 2.1% |
| US | 84,152 | 83,964 | 0.2% | 85,429 | -1.5% |
| Revenue by industry | |||||
| Automotive, Manufacturing and Industrial | 58,979 | 52,669 | 12.0% | 59,780 | -1.3% |
| Energy, Utilities and Building Automation | 19,637 | 17,898 | 9.7% | 16,647 | 18.0% |
| Financial Services and Insurance | 30,076 | 32,025 | -6.1% | 30,170 | -0.3% |
| Horizontal Tech | 13,686 | 16,439 | -16.7% | 14,587 | -6.2% |
| Life Sciences and Healthcare | 17,122 | 18,330 | -6.6% | 18,181 | -5.8% |
| Management Consulting and Business Information | 17,268 | 14,065 | 22.8% | 16,494 | 4.7% |
| Public, Non-profit and Education | 22,287 | 20,700 | 7.7% | 23,079 | -3.4% |
| Retail and CPG | 33,235 | 32,325 | 2.8% | 32,637 | 1.8% |
| Telecom, Media and Entertainment | 11,946 | 13,891 | -14.0% | 12,762 | -6.4% |
| Travel and Logistics | 22,646 | 19,952 | 13.5% | 22,293 | 1.6% |
Gross profit, gross margin and Adjusted EBITDA are neither required by, nor presented in accordance with IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.
Gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized.
Rounding differences may arise when individual amounts or percentages are added together.
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| Three-month period ended March 31 | 2025 | 2024 |
|---|---|---|
| % | % | |
| Revenue concentration (by customer) | ||
| Top 5 | 14.6% | 14.1% |
| Top 6-10 | 9.0% | 9.9% |
| Outside of Top 10 | 76.4% | 76.0% |
4
Index
Section A
Management Report
- Overview ... 6
- Financial performance: review and analysis ... 6
- Report on expected developments ... 12
Section B
Interim condensed consolidated financial statements
Interim condensed consolidated statement of financial position ... 14
Interim condensed consolidated statement of comprehensive income ... 16
Interim condensed consolidated statement of changes in equity ... 18
Interim condensed consolidated statement of cash flows ... 20
Other notes ... 21
Section C
Important information
Financial calendar ... 24
Legal notice ... 24
Up across together
Q1 Group quarterly statement for the period ended March 31, 2025
nagarro
The terms "Nagarro", "company", "the group" and "we" in this report refer to "Nagarro SE and its subsidiaries".
G
1. Overview
In Q1 2025, revenue grew 2.4% YoY in constant currency and 3.6% YoY in Euro terms. Organic YoY revenue for the quarter was up by 1.7% in constant currency and up by 2.9% YoY in Euro terms. Compared to Q4 2024, revenue declined 0.8% QoQ in constant currency, and grew marginally by 0.1% QoQ in Euro terms. Organic QoQ revenue for the quarter declined by 0.6% in constant currency and grew marginally by 0.3% in Euro terms. The company reduced 199 professionals (net) in Q1 2025 resulting in 17,496 professionals out of which 15,962 were professionals in engineering as of March 31, 2025. The number of clients doing more than €1 million in last 12-month revenue with Nagarro - an important internal indicator of growth potential - rose from 181 in Q1 2024 to 186 in Q1 2025.
2. Financial performance: review and analysis
The overall course of business for Nagarro in Q1 2025 was challenging. The global economic outlook was worsened by the threats of high US tariffs on imports. Our clients were cautious in the commissioning of new projects and the ramp-up of existing ones.
Results for Q1 2025
Revenue
Nagarro's revenue grew to €246.9 million in Q1 2025 from €238.3 million in Q1 2024, a growth of 3.6%. In constant currency, Q1 2025 YoY revenue growth was 2.4%.
Gross margin and Adjusted EBITDA
Gross margin and Adjusted EBITDA are non-IFRS alternative performance measures, selected to provide supplemental information for a meaningful comparison of the company's financial performance with industry peers and across reporting periods.
Gross margin is the ratio of gross profit to revenue, where gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized. Cost of revenues is the total direct cost needed to service the revenue. It includes direct costs related to colleagues (employees and freelancers) allocated to the performance of customer services, costs related to travel of these colleagues, cost of licenses and other, smaller, reimbursable and non-reimbursable cost components. It excludes the costs of management of the Global Business Units (GBUs) and the cost of consultative sales and thought leadership across Centres of Excellence (CoEs) and GBUs.
The table below shows the gross margins for the three-month period ended March 31, 2025:
| Three-month period ended March 31 | 2025 | 2024 |
|---|---|---|
| kEUR | kEUR | |
| Revenue | 246,884 | 238,294 |
| Own work capitalized | 64 | 59 |
| Total performance | 246,948 | 238,353 |
| Cost of revenues | (171,408) | (164,741) |
| Gross profit | 75,540 | 73,611 |
| Gross margin (as % of revenue) | 30.6% | 30.9% |
We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted to exclude effects that we consider extraordinary, such as impairment of goodwill, purchase price adjustments, badwill, foreign exchange effects on purchase price, sale of equity investments, share based payment arrangements cost, acquisition expense, retention bonus and non-capitalized earn-out expenses related to acquisitions, and, in recent periods, expenses relating to the strategic review of company's listing and privatization choices and subsequent exploration of the take-private option. Adjusted EBITDA is calculated according to economic criteria and is independent from IFRS rules. Therefore, the Adjusted EBITDA is more suitable for
CES
comparing operating performance over several periods. A more detailed definition can be found in the consolidated financial statements.
The reconciliation between Adjusted EBITDA and EBITDA is as follows:
| Three-month period ended March 31 | 2025 | 2024 |
|---|---|---|
| kEUR | kEUR | |
| EBITDA | 33,033 | 35,991 |
| Adjustment for special items | ||
| Exchange loss (gain) on purchase price components | (19) | 10 |
| Stock option and employee share participation program expense | (3,517) | 1,003 |
| Retention bonus expense under share purchase agreements in mergers & acquisitions | 708 | 946 |
| Earnout expense under share purchase agreements in mergers & acquisitions | - | 950 |
| Other expenses | 20 | - |
| Expenses relating to strategic review of listing and privatization choices | - | 262 |
| Total adjustment for special items | (2,809) | 3,171 |
| Adjusted EBITDA | 30,224 | 39,162 |
| Revenues | 246,884 | 238,294 |
| Adjusted EBITDA (as % of revenues) | 12.2% | 16.4% |
CSAT and NPS scores
Our key non-financial KPIs are our client satisfaction (CSAT) score and Net Promoter Score (NPS). Both the CSAT and the NPS are measured via a standardized client satisfaction survey. This survey is sent every quarter to the person responsible for project success on the client side – excluding very small engagements, now defined (starting with this period - Q1, 2025) as projects with no more than 3 FTEs of average monthly staffing in the quarter. Before this period, the projects excluded from the survey were defined as those with staffing in only one month, or in two months with no more than 1 FTE in each. The threshold for sending out the survey was changed based on client feedback and the low response levels for these small projects.
This survey also does not cover engagements via acquisitions in up to 5 quarterly cycles after the completion of their integration into Nagarro's systems and processes. Despite these caveats, the CSAT and NPS results are very central to our management system. Each CSAT question asks the client's frequency of satisfaction with a particular aspect of our services. The responses collected are monitored carefully at the aggregate level, at the question level, and at the project level. While minor fluctuations are to be expected, any significant trends are discussed and addressed. Our CSAT score was 94.3% for Q1 2025 with the new exclusion policy for very small engagements (Q4 2024: 92.4%; Q1 2024: 91.8%; both with the old policy). We expect this KPI to remain in the region of 92.0% in 2025.
The NPS question posed in the survey is: "On a scale of 1-10, how likely are you to recommend Nagarro to a friend or colleague?" Promoters are those who give a score of 9 or 10, Passives are those who give a score of 7 or 8, and Detractors are those who respond with a score below 7. The NPS score is calculated as (number of Promoters - number of Detractors) * 100/ (total number of NPS responses) and rounded to the nearest whole number. Nagarro's NPS score for Q1 2025 was 69 with the new exclusion policy for very small engagements (Q4 2024: 62; Q1 2024: 66; both with the old policy).
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B. Result of operations
Revenue
Nagarro's revenue grew to €246.9 million in Q1 2025 from €238.3 million in Q1 2024, a growth of 3.6%. In constant currency, Q1 2025 YoY revenue growth was 2.4%.
Nagarro operates across a variety of industries. The focus on consumer experience underlies the digital transformation of almost every industry, while the technology used for this also cuts across industries. Innovation occurs increasingly often at the overlaps of the traditional industry definitions. Yet, each industry also requires specialized knowledge, and we have been investing in developing such specialized knowledge in industry after industry.
Industries with the most robust global growth in Q1 2025 over Q1 2024 included "Management Consulting and Business Information" (22.8%), "Travel and Logistics" (13.5%), "Automotive, Manufacturing and Industrial" (12.0%), "Energy, Utilities and Building Automation" (9.7%).
The industries with negative growth in Q1 2025 over Q1 2024 were, "Horizontal Tech" (-16.7%), "Telecom, Media and Entertainment" (-14.0%), "Life Sciences and Healthcare" (-6.6%) and "Financial Services and Insurance" (-6.1%).
In the geographical revenue distribution, Nagarro generated 34.4% of its revenue from North America (Q1 2024: 35.8%), 29.9% of its revenue from Central Europe (Q1 2024: 28.7%), 23.4% of its revenue from Rest of World (Q1 2024: 23.4%) and 12.3% of its revenue from Rest of Europe (Q1 2024: 12.2%).
The top 5 currencies that contributed significantly to our revenues are listed below (in € million).
| Three-month period ended March 31
Revenue currency | 2025
mEUR | 2024
mEUR |
| --- | --- | --- |
| EUR | 95.0 | 87.8 |
| USD | 90.9 | 96.1 |
| INR | 21.8 | 22.3 |
| AED | 9.0 | 6.9 |
| GBP | 5.9 | 4.5 |
Gross profit and Adjusted EBITDA
Gross profit grew to €75.5 million in Q1 2025 from €73.6 million in Q1 2024. Gross margin decreased very slightly to 30.6% in Q1 2025 as compared to 30.9% in Q1 2024. Adjusted EBITDA declined by €8.9 million from €39.2 million (16.4% of revenue) in Q1 2024 to €30.2 million (12.2% of revenue) in Q1 2025. Our most significant adjustments to EBITDA in Q1 2025 is reversal of expense on stock options and ESPP (€3.5 million). This is being offset by retention bonus expense (€0.7 million) related to past acquisitions. Please note that gross profit, gross margin and Adjusted EBITDA are non-IFRS KPIs, defined in the Annual Report 2024.
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EBITDA, EBIT and net profit
EBITDA decreased by €3.0 million from €36.0 million in Q1 2024 to €33.0 million in Q1 2025 mainly due to negative impact related to currency movement by €8.1 million which is being offset by reversal of expense on stock options and ESPP amounting to €4.5 million and increase in hyperinflationary gain on net non-monetary assets by €0.6 million. EBIT decreased by €2.5 million from €26.6 million in Q1 2024 to €24.1 million in Q1 2025. Net profit decreased by €5.3 million to €11.2 million in Q1 2025 against €16.6 million in Q1 2024. Further, compared to Q1 2024, in Q1 2025 there was an increase in interest expense of €0.3 million and decrease in depreciation and amortization expense of €0.4 million.
The top 5 currencies that contributed significantly to our expenses (net of operating income) including taxes but excluding foreign currency income and expenses, and expenses relating to inflationary accounting are listed below (in € million).
| Three-month period ended March 31
Expenses currency | 2025
mEUR | 2024
mEUR |
| --- | --- | --- |
| INR | 95.3 | 89.7 |
| EUR | 61.4 | 59.2 |
| USD | 27.9 | 29.1 |
| RON | 13.5 | 14.6 |
| TRY | 7.5 | 6.9 |
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C. Financial position
Assets
Liabilities
Cash flow
Capital structure
On September 23, 2022, Nagarro SE entered into a Euro-denominated revolving syndicated credit facility agreement with five European credit institutions amounting to €350 million with an option to further increase the loan facility amount to €450 million. The utilized balance of this facility amounts to €288.5 million as of March 31, 2025.
We target a balanced debt-to-equity ratio and equity-to-total assets ratio that preserves flexibility for the company, allowing it to react to business opportunities and to changes in macroeconomic conditions.
On February 5, 2025, the Management Board of Nagarro SE resolved to make use of the authorization, which was granted by the shareholders' meeting of October 30, 2020, pursuant to Sec. 71 para. 1 no. 8 of the German Stock Corporation Act (Aktiengesetz, AktG) to repurchase shares of the Company until September 23, 2025, provided that these shares, together with other treasury shares which the Company has already acquired and still holds or which are attributable to it pursuant to Sections 71a et seq. of the German Stock Corporation Act (AktG), do not at any time account for more than 10% of the share capital. Accordingly, Nagarro SE has purchased 272,473 treasury shares amounting to €22.6 million during the quarter ended March 31, 2025.
The net debt reduced by €15.4 million to €206.9 million (net debt to adjusted EBITDA ratio of 1.5x) as of March 31, 2025, as against €191.5 million (net debt to adjusted EBITDA ratio of 1.3x) as of December 31, 2024.
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Liquidity
The company's liquidity position at the end of Q1 2025 was comfortable. The current assets were €421.3 million, of which cash was €162.2 million. The current liabilities were €176.8 million, yielding a working capital of €244.5 million.
Our total cash outflow in Q1 2025 was €31.3 million against an inflow of €15.9 million in Q1 2024. Cash flows for Q1 2025 are presented in the same format as the full year financials for financial year 2024.
Our operating cash inflow was €29.8 million in Q1 2025 as compared to €25.9 million in Q1 2024. Operating cash flow increased primarily on account of collection of US public sector receivables which is offset by increase in payment of income taxes amounting to €2.2 million.
Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 88 days on December 31, 2024 to 81 days on March 31, 2025.
The cash outflow from investing activities in Q1 2025 was €2.7 million, mainly due to purchase of property, plant and equipment amounting to €2.3 million and investment in long-term fixed deposit of €1.3 million. This is being offset by interest received amounting to €0.9 million.
The cash outflow from financing activities in Q1 2025 was €58.4 million as compared to €13.0 million in Q1 2024. Cash outflow in Q1 2025 was mainly on account of net repayment of bank loans of €25.8 million, purchase of treasury shares amounting to €21.9 million, lease payments of €5.7 million and interest payments of €5.1 million.
Countries with the top 5 bank balances are listed below:
| Countries | March 31, 2025
mEUR | December 31, 2024
mEUR |
| --- | --- | --- |
| Germany | 85.0 | 93.8 |
| India | 12.9 | 36.8 |
| United States of America | 12.3 | 11.4 |
| South Africa | 7.0 | 3.0 |
| Romania | 5.8 | 5.8 |
Net assets
Total assets declined by €31.6 million to €764.2 million as of March 31, 2025, as against €795.7 million as of December 31, 2024 which is mainly on account of decrease in cash by €30.4 million. Non-current assets increased slightly by €2.2 million to €342.8 million as of March 31, 2025, as against €340.7 million as of December 31, 2024. Within non-current assets, right of use assets increased by €12.3 million to €65.5 million (mainly due to their net addition amounting to €17.9 million offset by amortization of €5.6 million). Addition to right of use assets primarily represents new office space taken on lease in India. Intangible assets reduced from €43.4 million by €1.8 million (mainly due to amortization) to €41.6 million. Goodwill decreased by €6.5 million on account of currency differences. Current assets decreased by €33.7 million to €421.3 million as of March 31, 2025, as against €455.0 million as of December 31, 2024, within which cash balance decreased by €30.4 million to €162.2 million as of March 31, 2025 from €192.6 million as of December 31, 2024. Contract assets, trade receivables, other current financial assets and other current assets together decreased by €17.1 million to €238.9 million as of March 31, 2025 from €256.0 million as of December 31, 2024 (primarily due to decrease in contract assets and trade receivables by €14.5 million and other current assets by €4.2 million offset by increase in other current financial assets by €1.5 million). The above decrease has been offset by increase in income tax receivables by €13.8 million to €20.2 million as of March 31, 2025 from €6.4 million as of December 31, 2024.
Total liabilities reduced by €11.5 million to €561.5 million as of March 31, 2025, as against €573.0 million as of December 31, 2024. Non-current liabilities decreased by €19.2 million to €384.8 million as of March 31, 2025, as against €403.9 million as of
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December 31, 2024. Within non-current liabilities, loans and borrowings decreased by €30.9 million to €290.0 million as of March 31, 2025 against €320.8 million as of December 31, 2024 majorly on account of repayment of the bank loan. The decrease in loans and borrowings has been offset by increase in non-current lease liabilities by €11.6 million to €47.7 million as of March 31, 2025 from €36.1 million as of December 31, 2024. Current liabilities increased by €7.7 million to €176.8 million as of March 31, 2025, as against €169.1 million as of December 31, 2024. The increase is mainly due to increase in income tax liabilities of €12.9 million and liabilities to banks by €3.7 million (mainly, increase in factoring liabilities). The increase in current liabilities has been offset by decrease in short term employee benefits liabilities of €2.9 million, other current liabilities by €2.6 million, other current financial liabilities by €1.3 million and short term provisions by €2.2 million.
Net assets represented by total equity decreased by €20.0 million from €222.7 million as of December 31, 2024, to €202.6 million as of March 31, 2025. The decrease is due to purchase of treasury shares amounting to €22.6 million which is offset by increase in total comprehensive income of €2.5 million.
3. Report on expected developments
On January 23, 2025, we projected Nagarro's revenue for 2025 to be between €1,020 and €1,080 million, when calculated at the currency exchange rates then prevailing, up from €972 million in 2024. We targeted gross margin in the region of 30%, which was around the gross margin in 2024 of 30.4%. We targeted the Adjusted EBITDA margin to be between 14.5% and 15.5%, compared to 15.2% in 2024. Potential acquisitions in 2025 were not included in these projections.
The projections made on January 23, 2025, remain our estimate of 2025 performance.
In addition, Nagarro continues to evaluate potential acquisition targets. Acquisitions, if any, are more likely to be of a bolt-on nature than transformative. The primary strategy is to acquire for client access, so as to even better leverage our existing capabilities and case studies. However, there is always the possibility of an opportunistic transaction that deviates from our current strategy.
Nagarro has recently announced global strategic partnerships with a Japanese trading house and a Taiwanese hardware company. We plan to continue to deepen these and other relationships to create new avenues of growth.
All of the above management forecasts are expectations and may be proved wrong and are especially uncertain because of the multidimensional and unpredictable effects of the global economic situation.
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Section B
Unaudited group quarterly information
for the three-month period ended March 31, 2025 in accordance with IFRS
C3
Interim condensed consolidated statement of financial position
| March 31, | December 31, | |
|---|---|---|
| Assets | 2025 | 2024 |
| in kEUR | ||
| Intangible assets | 41,624 | 43,396 |
| Goodwill | 207,730 | 214,242 |
| Property, plant and equipment | 9,495 | 10,029 |
| Right of use assets | 65,534 | 53,274 |
| Non-current contract assets | 440 | 432 |
| Other non-current financial assets | 3,330 | 2,133 |
| Other non-current assets | 640 | 663 |
| Deferred tax assets | 14,054 | 16,491 |
| Non-current assets | 342,847 | 340,660 |
| Contract assets | 20,573 | 15,529 |
| Trade receivables | 199,826 | 219,332 |
| Other current financial assets | 9,384 | 7,850 |
| Other current assets | 9,134 | 13,324 |
| Income tax receivables | 20,194 | 6,440 |
| Cash | 162,192 | 192,567 |
| Current assets | 421,303 | 455,041 |
| Total assets | 764,150 | 795,701 |
F
| Equity and Liabilities | March 31, 2025 | December 31, 2024 |
|---|---|---|
| in kEUR | ||
| Share capital | 13,776 | 13,776 |
| Treasury shares, at cost | (62,347) | (39,757) |
| Capital reserve | 241,124 | 241,030 |
| Profit carried forward | 264,787 | 215,631 |
| Net profit for the period | 11,225 | 49,156 |
| Changes in equity recognized directly in equity | (260,612) | (260,612) |
| Other comprehensive income | (5,334) | 3,437 |
| Total equity | 202,618 | 222,660 |
| Non-current loans and borrowings | 289,973 | 320,835 |
| Non-current lease liabilities | 47,656 | 36,086 |
| Long-term employee benefits liabilities | 22,819 | 22,581 |
| Other long-term provisions | 452 | 434 |
| Other non-current financial liabilities | 5,942 | 5,743 |
| Non-current liabilities from acquisitions | 4,489 | 4,468 |
| Deferred tax liabilities | 13,439 | 13,785 |
| Non-current liabilities | 384,769 | 403,932 |
| Current loans and borrowings | 12,503 | 8,777 |
| Current lease liabilities | 19,011 | 18,396 |
| Short-term employee benefits liabilities | 13,180 | 16,085 |
| Other short-term provisions | 24,192 | 26,365 |
| Current contract liabilities | 15,387 | 14,105 |
| Trade payables | 15,167 | 17,076 |
| Current liabilities from acquisitions | 1,382 | 1,405 |
| Other current financial liabilities | 39,222 | 40,478 |
| Other current liabilities | 14,418 | 17,022 |
| Income tax liabilities | 22,300 | 9,399 |
| Current liabilities | 176,763 | 169,108 |
| Total liabilities | 561,532 | 573,041 |
| Equity and liabilities | 764,150 | 795,701 |
15
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Interim condensed consolidated statement of comprehensive income
| Three-month period ended March 31 | 2025 | 2024 |
|---|---|---|
| in kEUR | ||
| Revenue | 246,884 | 238,294 |
| Own work capitalized | 64 | 59 |
| Other operating income | 6,529 | 6,508 |
| Cost of freelancers and other direct cost | (18,967) | (17,222) |
| Staff costs | (173,793) | (168,162) |
| Impairment of trade receivables and contract assets | 580 | (1,095) |
| Other operating expenses | (28,263) | (22,390) |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 33,033 | 35,991 |
| Depreciation, amortization and impairment | (8,929) | (9,363) |
| Earnings before interest and taxes (EBIT) | 24,104 | 26,628 |
| Finance income | 899 | 829 |
| Finance costs | (5,617) | (5,296) |
| Earnings before taxes (EBT) | 19,386 | 22,161 |
| Income taxes | (8,161) | (5,601) |
| Profit for the period | 11,225 | 16,561 |
| Other comprehensive income | 2025 | 2024 |
| in kEUR | ||
| Items that will not be reclassified to profit or loss | ||
| Actuarial gains (losses) | (346) | (428) |
| Tax effects | 110 | 116 |
| (236) | (312) | |
| Items that may be reclassified to profit or loss | ||
| Foreign exchange differences (including effect of Türkiye hyperinflation of kEUR 511 [2023: kEUR 788]) | (8,682) | 5,503 |
| Tax effects | 148 | (197) |
| (8,534) | 5,306 | |
| Other comprehensive income for the period | (8,770) | 4,995 |
| Total comprehensive income for the period | 2,455 | 21,555 |
U
Basic earnings per share ('Basic EPS'):
| Number of shares | ||
|---|---|---|
| - based on weighted average | 13,241,271 | 13,322,118 |
| - based on outstanding shares | 13,049,645 | 13,322,118 |
| Basic EPS in EUR | ||
| - based on weighted average | 0.85 | 1.24 |
| - based on outstanding shares | 0.86 | 1.24 |
| Diluted earnings per share ('Diluted EPS'): | ||
| Number of shares | ||
| - based on weighted average | 13,244,811 | 13,322,679 |
| - based on outstanding shares | 13,053,185 | 13,322,679 |
| Diluted EPS in EUR | ||
| - based on weighted average | 0.85 | 1.24 |
| - based on outstanding shares | 0.86 | 1.24 |
10
Interim condensed consolidated statement of changes in equity
| Share capital | Treasury shares | Capital reserve | Profit carried forward | Net profit for the period | Changes in equity recognized directly in equity | Other comprehensive income | Total equity | ||
|---|---|---|---|---|---|---|---|---|---|
| Foreign exchange differences | Actuarial gain or loss on pension provisions | ||||||||
| In kBUR | |||||||||
| Balance at January 1, 2025 | 13,776 | (39,757) | 241,030 | 215,631 | 49,156 | (260,612) | 6,539 | (3,102) | 222,660 |
| Profit for the period | - | - | - | - | 11,225 | - | - | - | 11,225 |
| Other comprehensive income for the period | - | - | - | - | - | - | (8,534) | (236) | (8,770) |
| Total comprehensive income for the period | - | - | - | - | 11,225 | - | (8,534) | (236) | 2,455 |
| Transfer of profit or loss for the previous year to profit carried forward | - | - | - | 49,156 | (49,156) | - | - | - | - |
| Purchase of treasury shares | - | (22,591) | - | - | - | - | - | - | (22,591) |
| Dividends | - | - | - | - | - | - | - | - | - |
| Share capital issued | - | - | - | - | - | - | - | - | - |
| Transfer of capital reserve | - | - | - | - | - | - | - | - | - |
| Stock option and employee share participation program expense | - | - | 94 | - | - | - | - | - | 94 |
| Balance at March 31, 2025 | 13,776 | (62,347) | 241,124 | 264,787 | 11,225 | (260,612) | (1,995) | (3,338) | 202,618 |
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| Share capital | Treasury shares | Capital reserve | Profit carried forward | Net profit for the period | Changes in equity recognized directly in equity | Other comprehensive income | |||
|---|---|---|---|---|---|---|---|---|---|
| Foreign exchange differences | Actuarial gain or loss on pension provisions | Total equity | |||||||
| in kBUR | |||||||||
| Balance at January 1, 2024 | 13,776 | (39,757) | 251,717 | 166,476 | 49,155 | (260,612) | (6,964) | (3,325) | 170,466 |
| Profit for the period | - | - | - | - | 16,561 | - | - | - | 16,561 |
| Other comprehensive income for the period | - | - | - | - | - | - | 5,306 | (312) | 4,995 |
| Total comprehensive income for the period | - | - | - | - | 16,561 | - | 5,306 | (312) | 21,555 |
| Transfer of profit or loss for the previous year to profit carried forward | - | - | - | 49,155 | (49,155) | - | - | - | - |
| Dividends | - | - | - | - | - | - | - | - | - |
| Share capital issued | - | - | - | - | - | - | - | - | - |
| Transfer of capital reserve | - | - | - | - | - | - | - | - | - |
| Stock option and employee share participation program expense | - | - | 1,003 | - | - | - | - | - | 1,003 |
| Balance at March 31, 2024 | 13,776 | (39,757) | 252,720 | 215,631 | 16,561 | (260,612) | (1,658) | (3,637) | 193,024 |
20
Interim condensed consolidated statement of cash flows
Cash flows
| Three-month period ended March 31 | 2025 | 2024 |
|---|---|---|
| in kEUR | ||
| Cash flows from operating activities | ||
| EBIT | 24,104 | 26,628 |
| Depreciation, amortization and impairments of non-current assets | 8,929 | 9,363 |
| Change in long-term employee benefits liabilities | 799 | 464 |
| Other non-cash income and expenses | (4,707) | 1,458 |
| Income taxes paid | (6,769) | (4,542) |
| Cash flows from changes in net working capital | 12,931 | (1,736) |
| Net cash (outflows) / inflows from non-recourse factoring | (5,469) | (5,704) |
| Net cash inflow from operating activities | 29,817 | 25,931 |
| Cash flows from investing activities | ||
| Payments for property, plant and equipment and intangible assets | (2,286) | (1,502) |
| Proceeds from sale of property, plant and equipment and intangible assets | - | 1 |
| Redemption of / (Investment in) fixed deposits | (1,319) | 4,475 |
| Interest received | 923 | 1,107 |
| Acquisition of subsidiaries, net of cash acquired | (17) | (1,119) |
| Net cash (outflow) / inflow from investing activities | (2,699) | 2,962 |
| Cash flows from financing activities | ||
| Purchase of treasury shares | (21,868) | - |
| Proceeds from bank loans | 5,718 | 1,039 |
| Repayment of bank loans | (31,482) | (3,589) |
| Principal elements of lease payments | (5,683) | (5,951) |
| Interest paid | (5,064) | (4,505) |
| Net cash (outflow) / inflow from financing activities | (58,379) | (13,006) |
| Total cash flow | (31,261) | 15,887 |
| Effects of exchange rate changes on cash and cash equivalents | 2,367 | (458) |
| Total changes in cash and cash equivalents | (28,893) | 15,430 |
| Cash and cash equivalents at the beginning of period | 186,879 | 107,777 |
| Cash and cash equivalents at the end of period | 157,986 | 123,207 |
5
Other notes
Accounting policies
The accounting policies have not changed compared to the accounting policies disclosed in the consolidated financial statements for the year 2024. The quarterly statement of Nagarro SE for the quarter ended March 31, 2025 has not been reviewed by an auditor or has not been audited according to section 115(5) WpHG (German Securities Trading Act).
Treasury shares
Nagarro SE acquired 272,473 treasury shares in the first quarter of 2025 and held 726,340 units of treasury shares as at March 31, 2025 and 453,867 units as at December 31, 2024.
Factoring
Net cash flows from non-recourse factoring reconcile to the cashflows from operating activities as follows:
| Cash flows | Currency differences | Interest | ||
|---|---|---|---|---|
| Jan 1, 2025 | 2025 | 2025 | 2025 | Mar 31, 2025 |
| kEUR | kEUR | kEUR | kEUR | kEUR |
| Net cash flows: | ||||
| Trade receivables derecognized | 25,274 | (6,673) | (883) | 312 |
| Liabilities from factoring | (5,688) | 1,257 | 224 | - |
| 19,586 | (5,469) | (659) | 312 | |
| Cash flows | Currency differences | Interest | ||
| --- | --- | --- | --- | --- |
| Jan 1, 2024 | 2024 | 2024 | 2024 | Mar 31, 2024 |
| kEUR | kEUR | kEUR | kEUR | kEUR |
| Net cash flows: | ||||
| Trade receivables derecognized | 26,188 | (4,842) | 310 | 327 |
| Liabilities from factoring | (2,346) | (862) | (58) | - |
| 23,842 | (5,704) | 252 | 327 |
The changes in trade receivables derecognized and liabilities from factoring are disclosed as net cash flows from non-recourse factoring while change in gross trade receivables is shown as "Trade receivables, contract assets and contract liabilities" under changes in net working capital.
S
Significant transactions with related parties in accordance with section 115 (4) sentence 2 WpHG and IAS 34.15B (j)
Business relationships between all companies included in the consolidated financial statements were fully eliminated in the consolidated financial statements.
Basis of consolidation
The interim condensed consolidated financial statements as at March 31, 2025 include all the subsidiaries of the Group as mentioned in the consolidated financial statements as at December 31, 2024.
Events after the balance sheet date
There are no significant developments between March 31, 2025 and the date of publishing of this report except for those disclosed in Section B of our 2024 annual report.
22
Section C
Important Information
S
Financial calendar
For details, refer our IR website:
Financial calendar
Legal notice
Nagarro SE
Baierbrunner Str. 15
81379 Munich
Germany
Phone: +49 89 785 000 282
+49 89 231 219 151 (Investor Relations)
Fax: +49 32 222 132 620
E-Mail: [email protected]
[email protected] (Investor Relations)
Authorized representatives Executive Board:
Manas Human (Chairperson), Annette Mainka, Vikram Sehgal
Chairperson of the Supervisory Board:
Christian Bacherl
Registration Court:
HRB-Nr. 254410, Amtsgericht München
VAT ID:
DE 815882160
Responsible for the content acc. to Section 55 (2) Interstate Broadcasting Agreement RStV:
Manas Human
Investor Relations expert:
Gagan Bakshi
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