Dev Information Technology Ltd (NSE: DEVIT) Q4 2025 Earnings Call dated Jun. 04, 2025
Corporate Participants:
Unidentified Speaker
Jaimin Shah — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Chandni Chande — Analyst
Priya Jain — Analyst
Gaurav Chopra — Analyst
Ganesh Shetty — Analyst
Yashwanti — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the DEV Information Technology Limited FY25 earnings conference call hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Chani from Kirin Advisors Private Limited. Thank you. And over to you ma’ am.
Chandni Chande — Analyst
Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of day by IT Limited. From management team we have Mr. Jaimin Shah, Managing Director and CEO. Now I hand over the call to Mr. Jaimin Shah. Over to you sir.
Jaimin Shah — Managing Director and Chief Executive Officer
Thank you Chandmi and thank you Manas. Good afternoon everyone. Friends, I welcome you all who have joined today for these wave information technology BYPs are being called. We will discuss our financials and business performance for fiscal year 2024 25. As you all know Dev it has started its journey from Gujarat in 1997 and became one of the leading Microsoft partner not only for Gujarat government but also E Governance and the corporate. Then after we transformed our journey from E governance provider to a solution provider, that too started our establishment and operation in North America and various other countries.
In this entire journey we have acquired a few companies and then became one of the big end to end IT service company. As you all know our focus is on various segments because we are into end to end IT service company. So we are focusing on enterprise solutions. That one Microsoft Enterprise which is an ERP as well as a BI platform. Then we are also focusing on mainly digital transformation, cloud blockchain, AI and on manage IT side we are focusing on data center management, infrastructure management services and cyber security. Besides that we also have ventured out into start and introduce innovative fast based product and also have our own connect with startup ecosystem through Devex.
As you all know during FY25 we secured several strategic contracts including government projects with Lok Sabha, Rajya Sabha and Gujarat and Rajasthan governments, various state department and the key PSUs. This has grown our footprint into E governance side and we also have acquired few clients, corporate clients not only in Gujarat but also in Maharashtra and other part of our country. Besides that as you all know that our focus is also on international market and we acquired many clients because of our NDA. With those clients we are not disclosing their name. But we really acquired a good number of clients in North America, uk, Europe and UAE region.
One of our core competency and focus in North America is manufacturing, retail and accountancy consultancy services where we provide Microsoft Enterprise solutions as well as we manage their infrastructure and we also provide cyber security services. In this year we have focused mainly on North America region back to U.S. and Canada. But we have established our partnership connect with various other countries like Austria, New Zealand, UK and Europe and .
operator
Oh sir, are we done with the opening remarks? Hello sir.
Jaimin Shah — Managing Director and Chief Executive Officer
Hello.
operator
Yes sir. Should we begin the question and answer session?
Jaimin Shah — Managing Director and Chief Executive Officer
Hope my voice is audible.
operator
Yeah, now we can hear you sir.
Jaimin Shah — Managing Director and Chief Executive Officer
Oh, okay. So. Okay. So in. From financial standpoint, in Consolidated Balance Sheet FY 2425 was a strong year and as we predicted and also projected that we wanted to focus mainly on overseas market as well as having our profitability stronger. So this year, this financial year we have rose rupees 1839 million which was 11.38% year on year while EBITDA surged 54.91% to rupees 237.8 million with margin improving to 12.9%. Net profit grew 55.98% to rupees 147.8 million and diluted EPS increased to rupees 6.60 from rupees 4.18. In quarter FY24 fourth quarter of FY24 report. Sorry, in quarter FY25 quarter four we we reported 17.17 77% year on year increase in revenue to rupees 517.84 million with EBITDA at rupees 29.88 million and the net profit at rupees 11.35 million.
This was our growth in terms of finances point. And as we all know that industry is moving and from business point of view we are also focusing mainly on cyber security. And as you all know last December we announced our cyber security practice and fortunately we could able to clock approximately 200 lakh over order in FY2425 and in current year we are expecting at least double revenue from cybersecurity. So as with other side as well from AI and BI standoff, we are also expecting at least multiple double multiple revenue in this current financial year. And as far as blockchain and enterprise business is concerned, we are investing heavily into blockchain side where MoneyDeft, which is one of our 100% subsidiary, the company is heavily investing in building solutions for RWA solution as well which is a wallet infrastructure technical solution where we are creating for our master medical as well as European clients.
Same thing. We are also building various solutions on Microsoft Dynamics and around 20 plus solutions are already there on Microsoft Marketplace and DA is building heavily on that. So in these two companies we are investing heavily to build solutions. So after a year and so we can also expect heavy return from these developed solutions. Another thing which we have announced last year which is our shed a splee face value from 5 rupees to 2 rupees. Unfortunately we could not able to complete the formality before 31st of March 2025 because share price, share value quantity is less and we could not able to close a particular mediatory firm who can do all the formality.
Now we are on the verge of finalizing the firm and we are expecting that very soon the split announcement will be done and the it will be having a split from 5 rupees to 2 rupees. As we all know that global IT industry is experiencing a rapid transformation driven by accelerated adoption of AI, machine learning, cloud computing, blockchain. And as you all know that India IT industry is also projecting around $250 billion worth of business to support this global demand and also support the state demand. And majority of the domestic market is also going to be consumed from SME domestic market.
So this evolving landscape aligned well with Devit’s capabilities. You all know that we are already working on AIBI cyber security and blockchain side and we have developed good solutions. And right now in the final stage as far as AI and blockchain are concerned, as far as intelligence is concerned, that product has already been matured and now is also gaining heavy traction not only in Gujarat but also in various part of country. Still we are investing into intelligence and I think very soon it will be having the huge traction. And as you all know that it has a component of AI need.
So that has become a very unique proposition as far as people who are using tele accounting software. As far as AI is concerned, our AI sandbox and center of excellence experience center is almost done and few solutions will be showcased to our experienced center where customer or people can come and see what are their usage and how business can take benefit out of those AI solutions. The same thing we are also going to replicate in that experience center for blockchain value proposition. As you all know that Devex is one of the leading startup accelerator and managed co working space and Devit is one of the biggest shareholder in Devex.
So Dev accelerator currently having the 25 co working space and around 11 cities. These 25 co working space are there in 11 cities and around 1300 and 40 13,146 empowering startups with IT industry with those infrastructure model, infrastructure, mentorship and IT support. So that is also strengthening day by day as we all know that co working industry is increasing and also getting traction rapidly. So looking ahead we remain focused on three strategic priorities. Deepening our North America presence through organic and inorganic growth scaling our AI cloud capabilities and blockchain with partners like Microsoft, IBM and other MNCs building our SaaS based products also solution cloud based solutions for AI and blockchain.
So this will build our intellectual property and down the line it will give us more profitability like what we are getting from Devex. We also aim to balance our growth with margin focus and not only just focusing on revenue but also focusing on profitability. That’s what we are focusing and that’s how we are building solutions with IP in wave, IT as well as in DA and Mined. So thank you all. Mainly thanks to our employees, our customers, our partners and that’s how our philosophy is people, thought and business always. And that will remain the same.
And biggest thanks to all our investors and analysts who have kept ongoing trust on day and remain associated with dyt. I am sure down the line will keep our focus and strengthen our, you can say technology gamut so that we can build more and more solutions and we can build more and more agriculture property product so that our shareholders as well as our company will benefit out of the valuation of those products and solutions. So thank you all once again for patiently hearing me and also keep your trust on rewriting. So I now welcome your question and we’ll try to answer as fast as possible.
Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to withdraw yourself from from the question queue you may press Star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles a reminder. Anyone who wishes to ask a question you may press star and 1. Anyone who wishes to ask a question you may press Star in one. Now we have a first question from the line of Priya Jain from Green Capital.
Please go ahead. Priya, are you there?
Priya Jain
Am I audible?
operator
Yeah, now we can hear you.
Jaimin Shah
Yes.
Priya Jain
Can you provide more details on your static contract secure in FY25, especially the government mandate.
Jaimin Shah
Priya. See your voice was breaking. So let me ask again. So your our strategy on domestic market that to government a business for FY25, 26.
Priya Jain
Also like what percent of revenue now comes from the international clients particularly North America. Because we haven’t seen a lot of like revenue comes for IT companies in India from North America.
Jaimin Shah
Yeah. Okay. So thanks Priya. Our focus is mainly on India market as well as overseas market. And currently it’s North America market. So we are. We are. Our strategy is to build more and more dollar and overseas revenue. But also want to keep our focus on India market. So that whenever there is a strategy change in respective country overseas our company should not suffer heavily. So that’s what our experience so far in last 27 years. And that is how you can see that we are gradually building our revenue in overseas market. So our focus is current in next two years is to build and go up to 45 to 50% of our revenue from overseas market.
And majority of current overseas market led to around 90 to 93% comes from North America. As far as domestic market is concerned, entire domestic market, not only just government but private sector they have started adopting digital into their day to day business. And we are getting really great requirement and great traction from both the vertical government as well as non government in India and that particular vertical two vertical. We are also expecting that that will also grow by 15 to 20% in current year.
Priya Jain
Also to understand like how your on ground teams in the US and Canada contributing to the client acquisition and delivery.
Jaimin Shah
Yes. So as I mentioned earlier in my speech that we want to grow physically into North America region. And that is how in current year we are going to have a physical presence in North America. And that is how the company which we have acquired VA Consulting and they have their subsidiary in US which we are converting that subsidiary into. BYT’s physical presence in US region though DEVIT has a physical presence in Canada. But as far as USA is concerned we are getting ready for any kind of, you can say future policy change. And similarly as I mentioned earlier in my speech that we want to have physical presence by way of having our people on site or by way of acquiring some company so that we have our interpretence leadership presence in US region.
Priya Jain
Good to hear. So that is from my side.
Jaimin Shah
Thank you.
operator
Thank you. We have our next question from the line of Gaurav Chopra, an individual investor. Please go ahead.
Gaurav Chopra
We are very good afternoon sir. Just my question is that I was checking the company’s number. So the company is doing the Company has given very good results in this financial year as compared to previous year. But my question is that but the share of dev it is floating between, you know 100 to 105. So I just wanted to understand the company is doing good but why the price is low.
Jaimin Shah
Chopra Sir, thank you very much for your compliment. As far as share price is concerned, that’s not in our hand. Our main focus is giving good results as well as focusing on how we can establish or we can create value proposition in dayt so that in long term we have how we can build more and more profitability. And that is how you can see that whatever investment we had into direct that has resulted well as far as our value proposition concerned and that is how we are investing into Mindev DA and cyber security as far as share price is concerned, as you know that it’s not in our price and we cannot speculate into share price.
I’m sure investor like you will definitely give us more trust by associated themselves with KYT share.
Gaurav Chopra
Yes, I have another question. That company has also acquired one of company recently name there.
Jaimin Shah
Yeah.
Gaurav Chopra
Right. So yeah, just wanted to understand the purpose behind it that why it has acquired this company.
Jaimin Shah
Sure. So Dave, it already had a division called Microsoft Enterprise division where we were focusing on Microsoft Dynamics which is an ERP one of the leading ERP in the world. So after Corona it has been seen that India market and SME market there is a huge demand so to grew that particular market and to have immediate results and immediate traction. We acquired DA Consulting. Obviously they were working as one of the partners. Then we realize that if we acquire them then we can get really great co founders of Dave who can become Dev IT leadership team so that they can look after two things.
One is India market and second one is technology Not India market but Microsoft Enterprise market in India as well as North America and the technology market. So that how AI can be utilized in ERP market and ERP product and that is how to have good management leadership team, great presence in corporate and overseas market and third one to strengthen our ongoing business practice so that we can add more and more value to the YT’s performance. So these were the main three reason acquiring the consulting last year.
Gaurav Chopra
Okay. Okay. Thank you. Thanks. Thanks for the feedback. That’s on my side.
operator
Thank you. A reminder to all participants if you wish to ask any questions you may press star and one. We have our next question from line of Ganesh Shetty from individual investor. Please go ahead.
Ganesh Shetty
Yeah. Good afternoon sir. I congratulate you for the acquisition and pay forward your expanding your capabilities in different sphere of IT and especially cybersecurity and enterprise IT. And, but I have one doubt. In spite of all those initiatives, in spite of acquisition, our revenue is still at a very very low. And after 27 years of, you know, establishment of the company and having orders in financial sector, enterprises sector as well as government sector, our turnover is still at a very rock bottom area. So what is hindering us to have, you know, the revenue constraint year after year.
So with the initiative of the company and with the management team, leadership team, we have no shareholders are really expecting, you know, good growth from our company. So can you please explain us, you know whether it is we are still at a very different stage or whether we can see the really jump in revenues after some period of time.
Ganesh Shetty
Thank you very much and thanks for your association with Del it. You rightly said that revenue is not that much of attractive when it comes to it. So there are a couple of reasons. One, we are purely into IT services. We don’t do anything hardware business. So revenue, majority of revenue if you see any IT and that to FI companies their revenue comes from collective business that to IT services as well as IT hardware reselling. So we are not into hardware, we are purely into IT services and that’s what we call ourselves end to end IT service company.
Second thing, when it comes to increasing revenue, we can increase really good revenue by having our incremental focus into India market where we have very strong presence in E governance sector in India since last 27 years. As I mentioned in my speech that our focus is not just increasing revenue. Our focus is to increase profitability and our focus is to increase our overseas revenue so that we can increase more profitability and we can also increase our intellectual property which will convert into a greater value proposition. So our focus is just to pick up good valued customer in India and good valued customer in North America where we are focusing on those people.
So we are investing more into selecting customer as well as producing more solutions so that we can get good return when there is a really high demand of that particular solution. So we are focusing more onto particular industry vertical in India as well as abroad creating solution so that that solution can be worked heavily when there is a demand. And third one to create more and more profitability for the company.
Ganesh Shetty
Sir, as we are expanding in international business, also in finding new businesses in domestic market, are you sure that we will be able to maintain the EBITDA margin at least what it is existing now? Can we improve going ahead as. Expenses. Regarding expansion will decrease and the investment. Will decrease in the future.
Jaimin Shah
That’s really a good question. Our expectation and our projection is to establish and to increase EBITDA business. And that is how we are going very cautiously in terms of expanding or investing heavily in North America region by way of acquiring some local company or by way of having a leadership person physically in us. So to maintain a balance, we are also increasing our revenue which will give us not great profit but good profit from domestic market. And we invest that thing to expand our business in North America region. And from management perspective, we took a conscious call that instead of having costly resources in North America.
One of the. Management people and registry people will travel a lot in North America region so that we can save that money and we can establish our need first and then we’ll go. For having physical people in North America and current year, we are expecting that we’ll be having the physical people there in North America. So giving a short reply to your question that yes, our main focus is to carry forward EBITDA which we have earned so far and to increase our EBITDA in coming years.
Ganesh Shetty
Thank you very much sir and all the best for the future.
operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. We have our next question from the line of Yashwanti, an individual investor. Please go ahead.
Yashwanti
Thank you sir. And good afternoon sir. What? Do you have a bifurcation from your latest order book? What? What contribution comes from the government? What contribution will come from the government and from the private place?
Jaimin Shah
Okay, so you want to know what are the bifurcation of our government business and non government business.
Yashwanti
Right sir.
Jaimin Shah
Okay, so as mentioned in earlier calls as well, our government business is somewhere around 60% of our India business. So which is around 55% or so. 55 to 57% is our government business. Revenue for the total company.
Yashwanti
Differs from the government business and on the private label.
Jaimin Shah
Yes, in government business margin really less and non government business margins are really high.
Yashwanti
Considering the growth opportunities. Are you looking to add people in the channel here?
Yashwanti
Sorry, I think that I missed your question. People, are you talking about resources?
Jaimin Shah
Okay, so yes, we are going to add human resources in spite of there is a huge demand in terms of automation in terms of but few of our customers in India as well as abroad. They want people on site to do various activities. So we are expecting increase in manpower. But we are also expecting many things which will be done by AI and machine learning. As example, quality qc, then code writing. For our overseas clients as well as corporate clients.
Yashwanti
Sorry, any bit by client any anything in the contrast.
Jaimin Shah
so many, many, many orders right now into pipeline. And as we are one of the preferred partner or vendor for government entity. So there are many meetings are already there which are going to announced very soon.
Yashwanti
Yeah. Yeah. So yeah.
Jaimin Shah
Okay. Thank you.
operator
Thank you. A reminder to all participants. If you wish to ask any questions you may press star and 1. Anyone who wishes to ask a question, you may press Star and one. Now we have our next question from Lino Gaurav Chopra, an individual investor. Please go ahead.
Gaurav Chopra
Hello. I wanted to ask that the operating profit margin of the company is low. So can I know the reason and can we see it increasing coming years or coming times?
Jaimin Shah
Yeah, we are very much sensitive about increasing operating profit margin. And that is how we have increased the FY24 25 as compared to FY23 24. But still that is what we are focusing reason behind low is that three things we are investing into product building, SaaS based product building. We are investing into AI creating a solutions, creating enterprise solutions and building those products. So that down the line after a year or so our profitability increased. And third one is on blockchain side where currently we are building solutions which will lead into more profitability. This is how we have done for Devex and this is how Divex has become one of the leading co working company in India.
Same thing we are applying for these three region or these three side which I talked about.
Gaurav Chopra
All right. And I have another question that also the debtors days are also very high. So generally.
Jaimin Shah
Yes. So that’s a standard thing when in year end which can. You can compare it with previous years as well. Majority of our debtors are government debtors. So in March end those order comes and takes comes in 60 to 90 days.
Gaurav Chopra
Okay. And one more thing that what as per you the USP of companies which actually differentiate views from other companies.
Jaimin Shah
So USP is. We believe in people. So people first. And if you can, if you have seen most of our clients and employees are there with us since so many years. Even customers. That too government customers and overseas customers. Few of the overseas customers which has been bought multiple times. But we remain there to look after their data centers and to look after their infrastructure. So that’s people first in business always is one of our key usp. Another one is end to end services. You can see that we have software digital transformation services which has cloud blockchain, AI and manage IT services.
So that customer do not have to go and check for another vendor which has cyber security or infrastructure management services. So this has become our usp, which is an end to end it services.
Gaurav Chopra
All right, thanks. Thanks for the information.
operator
Thank you, ladies and gentlemen. That would be the last question for today. And I now hand the conference over to Ms. Chani from Kiran Advisors for closing comments. Over to you ma’ am.
Chandni Chande
Thank you for joining the conference caller this limited. If you have any queries, you can write to us@research advices.com Once again, thank you for joining the conference. Thank you. J sir. Thank you.
Jaimin Shah
Mana thanks Mano and thanks all. Thanks. Thank you soon.
operator
Thank you sir. On behalf of Kirin Advisors Private limited, that concludes this conference. Thank you for joining us. And you may now disconnect your line that.