Release Date: July 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- E2E Networks Ltd (NSE:E2E, Financial) has built a significant capacity of nearly 3,900 GPUs, enhancing its cloud infrastructure capabilities.
- The company has seen an increase in its Monthly Recurring Revenue (MRR) to 14.5 crores by the end of June, up from 11.2 crores in the previous quarter.
- E2E Networks Ltd (NSE:E2E) has successfully expanded its enterprise sales team, opening new conversations and opportunities through both direct sales and partnerships.
- The Noida location's GPU capacity is now live and operational, contributing to new revenue streams.
- The company is optimistic about achieving an exit MRR between 32 to 38 crores by the end of the fiscal year, indicating strong growth potential.
Negative Points
- Quarter-on-quarter revenue dropped by 12.6%, closing at 361 million, indicating a decline in financial performance.
- The company reported a loss of 28 million, with a negative EPS of 1.39, reflecting financial challenges.
- There have been delays in the deployment of the Chennai facility due to technical issues, impacting capacity expansion plans.
- The utilization rate of the current GPU capacity is only between 50% to 60%, indicating underutilization of resources.
- The company has not yet seen significant revenue from its software licensing play, which was expected to be a growth driver.
Q & A Highlights
Q: Have you received any revenue from the India AI mission this quarter?
A: Yes, we have received some revenue, but it is relatively small. We are in ongoing discussions and expect more significant revenues in the coming quarters. We are confident that things are speeding up with the India AI mission. - Respondent: Managing Director
Q: What is the current utilization of your GPU capacity, and what are your expectations for the end of the year?
A: Currently, nearly 3,000 GPUs are up and running, with a utilization rate of 50-60%. We expect this to increase to 75-90% by the end of the fiscal year. - Respondent: Managing Director
Q: Are you planning to add more GPUs this financial year?
A: We are continuously evaluating capacity additions. We aim to add more GPUs based on demand and utilization. We are aggressive about capacity expansion and are considering adding Blackwell GPUs. - Respondent: Managing Director
Q: What is the status of the Chennai facility, and how does it impact your revenue projections?
A: The Chennai facility faced some technical delays but is expected to be operational soon. We have a pipeline built for this location, and once operational, it will contribute significantly to our revenue. We are targeting an exit MRR of 35-38 crore by the end of the fiscal year. - Respondent: Managing Director
Q: How does the India AI mission impact your profit margins?
A: While there may be some margin contraction due to the India AI mission, we do not expect it to significantly impact our overall margins. We are committed to supporting the national mission while maintaining our profitability. - Respondent: Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
