Ceinsys Tech Reports 54% Growth In Q2 Revenue, Net Profit Surges 149%

Ceinsys Tech has declared its financial results for the second quarter (Q2) and first half (H1) of the fiscal year 2024-25, ending 30 September, 2024. The company reported strong revenue and profit growth in Q2, with revenue reaching Rs 90 crore, a 54 per cent increase year-on-year (YoY). The company’s EBITDA stood at Rs 16.8 crore for the quarter, reflecting a 71 per cent YoY growth and an EBITDA margin of 18.67 per cent. Net profit (PAT) for Q2 was reported at Rs 11.7 crore, marking a 149 per cent rise compared to the same period last year.

In the first half of FY25 (H1), Ceinsys Tech achieved total revenue of Rs 163.9 crore, showing a 46 per cent YoY increase. EBITDA for the six-month period was Rs 30 crore, a 42 per cent rise YoY, while net profit amounted to Rs 23.6 crore, up 82 per cent from H1-FY24. However, the EBITDA margin for H1 stood at 18.30 per cent, a decrease of 52 basis points from the same period last year, indicating some margin pressures despite the increase in revenues and profit.

As of 30 September, 2024, the company’s total order book crossed Rs 1,000 crore, reaching Rs 1,210 crore. Geospatial and engineering services accounted for 76 per cent of the order book, with the remaining 24 per cent coming from technology solutions. This diversified order book reflects the company’s expansion across multiple sectors and its emphasis on building a substantial portfolio of long-term projects.

Operationally, Ceinsys Tech showed progress in optimising its working capital cycle, which was reduced to 108 days by the end of Q2, down from 190 days as of 31 March, 2024. The company ended the quarter with a cash surplus of Rs 171.9 crore, which includes a net operational cash surplus of Rs 68.4 crore, further strengthening its financial position. The company also raised Rs 235 crore through fresh equity and share warrants in Q2-FY25 to fund its future growth and strategic initiatives.

Ceinsys Tech also invested in growth-driven initiatives, including the acquisition of assets from a US-based geospatial company in the telecom sector and an expansion into data center capabilities. During the quarter, Ceinsys Tech secured major contracts such as a Rs 206 crore IoT-based project with the Maharashtra State Water and Sanitation Mission (SWSM) and a Rs 60 crore digital project monitoring system for Maharashtra SWSM. The company also extended a Rs 196 crore third-party inspection (TPI) project with the Uttar Pradesh SWSM, depicting its continuing engagement in infrastructure development projects.