Q1 2027 CE Info Systems Ltd Earnings Call Transcript
Key Points
- Revenue grew 14.9% year-on-year to INR139.7 crore, with EBITDA margin at 40.2% and PAT margin at 31.2%.
- Strong open order book of INR1,750 crore provides good revenue visibility for future growth.
- Automotive segment revenue grew 29% year-on-year to INR58.8 crore, driven by new wins and product expansions.
- IoT-led business saw significant growth, with revenue jumping from INR23.4 crore to INR41 crore, driven by hardware sales that will lead to future SaaS revenue.
- Company is well-diversified across automotive, enterprise, and government segments, reducing concentration risk.
- AI is not new to the company; it has been used for years to enhance maps and products, with a renewed focus on AI-native development.
- Leadership strengthened with Rohan Verma's appointment as Joint Managing Director, expected to drive future growth.
- Government and public sector business shows green shoots, with opportunities in defense and oil & gas.
- International business, particularly in Southeast Asia, is progressing with reduced losses in the JV.
- Company has a strong moat with a multi-product, multi-industry portfolio, enabling wallet share expansion and cross-selling.
- Map-led business growth was flat, with revenue only slightly increasing from INR98.2 crore to INR98.7 crore year-on-year.
- One-time write-off of INR4 crore from a government client impacted EBITDA margin by 4%, though net P&L impact was only INR80 lakhs.
- Government receivables are a concern, with longer collection cycles and a majority of total receivables tied to government contracts.
- IoT hardware sales, which are lower margin, are growing faster than services, temporarily pressuring overall profitability.
- International business is still developing and not yet contributing materially to revenue, requiring patience.
- Automotive segment growth was impacted by a time shift in a large OEM contract, which may continue to affect near-term performance.
- Government business is a slow starter in Q1, with seasonality affecting quarterly revenue patterns.
- The company does not provide detailed order book split by segment, limiting visibility for investors.
- IoT services revenue showed a declining trend from Q2 FY2026 to Q1 FY2027, indicating potential billing cycle variability.
- The company remains cautious on government contracts due to receivables risk, which may limit aggressive growth in that segment.
Ladies and gentlemen, good day and welcome to the CE Info Systems Limited Q1 FY2027 Earnings Conference Call hosted by Arihant Capital Markets Limited. (Operator Instructions) I now hand the conference over to Ms. Natasha Singh from Arihant Capital Markets Limited.
Thank you and over to you ma'am.
Thank you so much. Hello and good evening to everyone. On behalf of Arihant Capital, I thank.
I thank you all for joining into Q1 FY2027 earnings conference call of CE Info Systems Limited. Today from the management we have Mr. Rakesh Kumar Verma, Group Chairman MD, Mr. Rohan Varman, Joint MD, Mr. Anuj Jain, CFO, Mr. CS Saurabh Somani, the CS of the company. So, without any further delay, I'll hand over the call to the management for their opening remarks. Over to.
Thank you, Natasha.
This is Rakesh Verma. I'll
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