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Commercial Services company eMudhra announced FY24 results:
Financial Highlights:
- Revenue for the year was Rs 3,800.4 million, an increase of 49.6% from the previous year
- Gross profit for the year was Rs 2,576.4 million, representing a gross margin of 67.8%
- Operating expense for the year was Rs 1,224.0 million
- EBITDA for the year was Rs 1,164.8 million, with an EBITDA margin of 30.6%
- EBIT for the year was Rs 956.7 million, with an EBIT margin of 25.2%
- Net income for the year was Rs 763.5 million, with a net margin of 20.1%
- Earnings per share for the year was 9.7, an increase of 16.6% from the previous year
- The company had cash and cash equivalents of Rs 2,494.6 million at the end of the year and is debt free
- Dividend of 25% of face value has been declared
Commenting on the full year results, V. Srinivasan, Executive Chairman, eMudhra Limited said, “We are pleased to report another quarter of consistent performance and a strong full year result with revenue growth of 49.6% YoY, EBITDA growth of 25.8% YoY and PAT growth of 24.8% YoY.
Over the last year, we have made significant strides in penetrating our solutions into various international markets aiding businesses in their transition towards zero trust. Traceability, verifiability and security are becoming central themes as businesses continue to adopt digital technologies as a way of doing business. In this context, public key infrastructure and digital signature certificates embed “Identity” and “Security” allowing a far more robust security architecture as part of any digital data or document exchange.
We continue to address mission critical use cases as part of our Enterprise Solutions business consisting of our “Paperless Office” and “Cyber Security” suite of offerings. As we continue to address use cases across sectors and industries, we have been able to “Land” and “Expand” into existing/new customers as they mature through their journey of digital adoption and enhancing cyber security posture.
Our paperless office product emSigner continues to see strong demand from several large customers globally as it is seen as a platform of choice for solving complex document signing workflows in industries such as BFSI, Pharma etc. Similarly, as customers try to move away from passwords to more secure forms of authentication, they adopt emAS for multi-factor authentication. Incremental sales come from upselling emCA and emDiscovery where they adopt PKI and Digital Signature Certificate based authentication/authorization for ensuring stronger access control.
We have been able to significantly grow our international business owing to strong focus on sales and marketing. Broadly these efforts have been focussed on establishing a strong direct market presence in regions such as North America which are either mature in their adoption of digital technologies or countries in Middle East and Africa where there is a strong eGovernance agenda focussed on digital transformation and cyber security based on principles of zero trust. Our acquisition of Ikon has also worked well as the teams continue to win and work on cross-selling and up-selling opportunities for both Ikon’s and eMudhra’s set of offerings across the client base. For the India market, while we continue to see robust demand, we shifted our strategy to unbundle hardware as part of our contracts to reduce 3rd party dependency and mitigate delays in project delivery and receivables.
On trust services, we continue to enjoy a strong brand in India resulting in healthy growth and stickiness for our retail and direct to consumer sale of digital signature certificates. This resulted in strong growth for trust services as partners and customers want to work with a reliable digital signature provider who can provide quick identity vetting and strong support particularly during peak issuance periods. eSign continues to see traction along with other offerings such as eStamping as BFSI, Capital Markets embark on paperless transformation. We continue to place focus on SSL/TLS certificates as part of our Certificate Lifecycle Management product emDiscovery helping us differentiate from pure play SSL/TLS players.
Our R&D efforts are focussed on reimagining security in the context of Quantum computers, Edge computing and Data privacy. In line with this, we have already embarked on R&D in Post Quantum Cryptography, Fully Homomorphic Encryption and Mobile PKI.
To summarize, we see continued opportunity in our space as digital transformation and movement to zero trust as a result of cyber threats continue to be top of the mind agenda for many large organizations. At eMudhra, we will continue to invest in building product depth, service capabilities and market reach to effectively address these opportunities”.
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