Kellton Tech Solutions Limited (NSE: KELLTONTEC) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Niranjan Chintam — Executive Chairman
Karanjit Singh — Chief Executive Officer
Analysts:
Unidentified Participant
Ajay Agarwal — Analyst
Prashant Pani — Analyst
Prashant Pani — Analyst
Prateek Dedhia — Analyst
Prateek Dedhia — Analyst
Brijesh Mishra — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the Kelton Tech Solutions Limited Q4FY25 earnings conference call. 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. I would like to thank all of you for participating in the company’s earnings call for the fourth quarter of the financial year 2025. Before we begin, I would like to mention a short cautionary statement.
Some statements made in today’s phone call may be forward looking in nature and such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made from information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose for today’s earnings conference call is purely to educate and bring awareness about the company’s fundamentals business and a financial quarter under. I would now like to introduce you to the management participating with us today.
In today’s earnings call we have with us Mr. Niranjan Chintam, Chairman and Whole Time Director, Mr. Karanjeet Singh, Chief Executive Officer India Mr. Srinivas Potluri, Chief Executive Officer US. Thank you and over to you Mr. Niranjan ChintaM sir, thank you.
Niranjan Chintam — Executive Chairman
Good evening, Good afternoon, morning wherever you are. Thank you for joining our Q4 FY25 earnings call. Also the financial year closing. So we’ll first start off with the financial highlights. Then we’ll give clients wins and then operational highlights. So we’ll start off with the financial highlights. For the financial year 25 we had a total revenue of 1,099 or close to 1100 crores or 1100 crores is what we should say which is about 11.7% growth. Year on year the EBITDA is around 129 crores and the net profit is close to 80 crores. The EBITDA margin is 11.8% and the PAT margin is 7.3%.
The earnings per share is rupees 8 and 18 paisa. Now coming to the quarter, two hundred and eighty seven crores is the revenue. EBITDA is around 30 crores and a net profit of 19 crores. The revenue is about 15.7% growth on a year. On year quarter basis growth ebitda is around 10.5 and a PAC margin of 6.7. We also had nine customer wins this quarter. Now I’ll ask Karanjit to give information on the clients and then the operational highlights too. Karanjeet, can you talk about the client wins and the operational highlights please?
Karanjit Singh — Chief Executive Officer
Yeah, sure. Thank you Niranjan and hello everyone. So as Niranjan said, I’ll first start off with the client wins. As we said, we have had nine client wins. I’ll give you a little bit of color on what kind of wins these have been. So one of them is basically a marketing agency. They are trying to build a complete product. It’s a very huge product that they’re trying to build which covers intelligent survey management platform, that’s what they are trying to build which cover the entire research life cycle. So all the way from creation, configuration, distribution, insights.
And this has a fair amount of AI driven question generation and logic. So we’re building that. So that’s one of the customers. Then we have basically a customer where we have, where they’ve launched a strategic professional services engagement is what we have launched by deploying some of our SAP consultants who are basically helping them with their AI capabilities. So that’s kind of another engagement that we have signed off. We are helping with the AI driven modernization of a child tech company, a European company. We’re working with them to basically help with the modernization and this is the whole end to end, right all the way from HR to payroll to accounting systems.
Similarly we have actually also won deal with global GCC where we are helping them. We started off with with a team that is going to help them harness AI powered technologies to kind of manage their global community center operations in India. We also have certain other solutions that we sold. One is in the we have sold advanced warehousing management solution to one of one of the leading companies and we are also helping one of the big IT services company and has a global intellectual property data platform. So by basically doing digitalizing IT and also enriching the patent repository.
So this has all sorts of things all the way from OCR to data cleansing to data set labeling. So all of these are now and all supported by AI driven initiatives. So that should give you a sense of the kind of deals that we have closed this quarter. Should I continue on with the operational highlights?
Niranjan Chintam — Executive Chairman
Yeah, please go ahead Karnjiv.
Karanjit Singh — Chief Executive Officer
So on the operational high side I will talk about a couple of large projects that we’ve successfully. One of them we would like to mention is a very successful SAP S4 Hana go live with a multinational client and the challenge was the 24, 21 global entities. So these were all that went live. And in fact we were highlighted by the client CIO at the SAP Insider Las Vegas event in March and also similarly in their Acer chapter in Dallas. We basically also for another very large client, we have deployed AI powered centralized fuel tracker management system.
In fact it is really to do with coal procurement in this case. But really what we have done is something around bulk handling. So if you do bulk handling, it’s a very, it’s a very specialized kind of thing that gets used in coal, chemicals, cement. So this is something which was a big, you know, was a lot of challenge given emails and Excel. So we successfully have kind of brought that onto a powered system. We also are executing, we are presently executing almost a 2.5 million project for one of the oil ratnas in India where we are deploying a real time monitoring system across about 75 odd well heads.
And this is a combination of IoT analytics and cloud technologies. So this will be used in the 75 odd well heads around I think 15 sites that they have. The other one that I really speak about is about a global platform, OTT content management platform that we successfully helped to move from a legacy thing to a completely cloud native architecture. And we seamlessly moved them flawlessly. The transition was flawless. This day address almost 33 million users at any time. Obviously there has to be zero, there is zero downtime when we did this and it almost handles like 52,000 hours of content, about 11,000 queries a second.
So this was a very flawless kind of delivery that happened and we transitioned them with a zero downtime. Similarly, if I were to speak about, we’re also working with a global game development company and so basically helping them with AI driven digital resource management platform that will help them streamline all their staffing for the internal projects. So this will lead to like almost 65% of manual effort reduction. So these are all some of the kind of operational highlights from the kind of projects that we won in the previous quarters that we have successfully delivered in the past quarter.
Niranjan Chintam — Executive Chairman
Thank you, thank you.
Karanjit Singh — Chief Executive Officer
Over to you back.
Niranjan Chintam — Executive Chairman
Okay, thank you. With that I want to open up for questions. So operator, can you please.
Questions and Answers:
operator
Yeah, for sure. Thank you very much. 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 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 to all participants, please press star and one to ask any questions. We have our first question from the line of Ajay Agarwal, an individual investor.
Please go ahead.
Ajay Agarwal
Hi. So what is. Yeah, hi. Thanks for the insight. I just wanted to know what is the long term vision of this company? Five years.
Niranjan Chintam
So we want to be known for our. I guess now the AI capability, right is taking over. As you are aware, Ajay, everywhere and everything is AI. Earlier it used with digital transformation. Now it’s is a combination of data and AI including digital transformation. What that people will coin in future, I don’t know. We want to be known as a global service provider for the AI enabled digital transformation of all solutions that are possible in scaling starting from scratch. It could be green field or brown field retrofitting it. We already started it today. What you’re seeing is that pretty much any project that we are doing, everybody is talking about AI and saying how do I get my process re engineered using AI or how do I.
I think one of the things that I’ll let Karanjit talk about, one customer has told us, Kanjit, can you talk about the customer where he said he looks for three different things when it comes to the AI, what AI can do for him. Can you please talk about that, Karanjit?
Karanjit Singh
Yeah, yeah, sure. So basically. Yeah, so I’ll just step back a little bit. Permission. So basically Kaitan has always prided itself in basically being the digital transformation company. It was always our vision. That’s been our stated vision statement where we said that we help our companies to kind of be very successful with their business by being their digital transformation partner. It pretty much continues just that everything has changed to AI. So we have basically in fact had. So we had kind of reimagined ourselves in the context of AI because it is another, almost like another.
It’s almost like another transformational moment that’s happening. So with that spirit we’ve sort of obviously engaging with a lot of customers and basically we, we’ve engaged with a customer where there’s an insurance customer where we engaged A lot of the times the engagements are around, hey, what can you do for us? So we basically kind of have those discussions and we kind of basically told them that here are the areas, right. So we can basically if you have basically so we have an offering on and this is very similar to what we used to do in the digital transformation world.
If you do not have a vision then we can really help you in Creating a roadmap for you, how should you lead into your digital transformation? So similarly we have an offering, the first offering, if somebody says that hey, what should I do in AI? Then we have things like master classes and assessment and a workshop or visioning exercise that we can do that will help you to basically come up with your AI vision in your context. The second is very few customers, right? They basically have come up with their own AI visions. Obviously they know what is to be done.
They have possibly work streams and projects defined. So in which case we can help them implement those visions. Right? Like the digital platforms that we built, we will build AI platform for you kind of a thing, right? The third is that you could be doing something very, very core like is we, I’m trying to build this project or a SaaS product. So obviously we can help you translate all of that and help you with the core, right? We can help you everywhere from agents, LLMs and all the other cool stuff that happens. So these are the kind of three broad offerings and engagements that we do with customers based on where they are with their journey in AI.
And to your question on how do you see yourself in five years, just like we said, we are the digital transformation company. We would like to be the AI first digital transformation company.
Niranjan Chintam
Thank you. To add to that, right, what are the customers looking for when it comes to the new AI or what they, some people are calling it. Industrial 5.0 is, hey, how do you increase our revenue and how do we increase our profit and how do you engage or keep the customers engaged with us? Right. Those are the three different things that we are working with our customers and that is what is going to be the future when it comes to that. So increase revenue, increase profits and keep the customer engaged. Those are the areas that we are working.
Thank you Karanjit and thank you Ajay. Anything else, Ajay?
Ajay Agarwal
Yeah, see basically my, my question was more from the perspective of vision. In five years, AI is the in thing now. It’s essentially from how do you, how do you kind of transform yourself into the next Infosys or TCS in the next 5, 10 years? So you have these big companies, how do you really compete with them to take a bigger share of this AI digital transformation journey?
Niranjan Chintam
Okay, so I don’t want to be, I don’t want to name names, but I don’t want to be those big companies. I’m going to be very honest there. Right. That is not what we’re aiming to for when it comes to providing service to our customers. We are talking about today. We can stand when it comes to our capability with any of the big boys without naming them. Right. Including the large consulting companies. We went head to head with the large consulting companies and we have won. Where we lose out is our balance sheet size. Right.
Because they have access to the board members. We don’t have access to the board members. Okay, from that point of view, right. From a technical capability point of view, hey, we have known much. Our capability is much better than any of these big boys that you named. So you probably are looking for revenue numbers. But revenue numbers I have projected out and said, right, you know, we want to be around the 200 million in the next two to three years. That is the that we want to reach out and then expand upon it. I don’t want to project what it’s going to be the five years, but I want to talk about near term.
But our growth is going to be aggressive and our profitability is going to increase. As you have seen the numbers red compared to what it was last year to now. Yes, incrementally it has increased slightly. But we are on the path towards that growth or the inflection point you call it. We have just passed that inflection point and. And you can see the efficiencies coming into the system which will lead to increased profitability and increased growth in other India.
Ajay Agarwal
Thanks Ramsay. Thanks for answering.
Niranjan Chintam
Thank you, Ajay.
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 1. Anyone who wishes to ask a question, you may press star and one. Now we have our next question from the line of Prashant Pani from an individual investor. Please go ahead.
Prashant Pani
Hi, good evening. So thanks for the opportunity. So just want to add a little here. What is the reason like that our EBITDA margin is falling and I’m not understanding with this revenue that other expenses is gradually increasing. So where do we spend these things or these things on? Want to know and second thing.
Niranjan Chintam
Yeah, sorry, go ahead. Yeah, yeah, go ahead, go ahead.
Prashant Pani
Yeah, go ahead, go ahead, go ahead, answer to me.
Niranjan Chintam
Okay, so EBITDA has not fallen. You probably are comparing quarter to quarter. See quarter to quarter there’s always going to be slight differences. Look at the whole year where we increased our EBITDA by 1%. Even the bottom line also went up. That’s why I said there is the inflection point of growth. Okay, just talk about this quarter, right? There was a lot of investments made in AI retooling ourselves, which is what Karanji talked about while we were doing some specialization solutions to AI. Now we are talking to industry specific AI capability that we have built now in house that we are going after and that is yielding a lot of good results when it comes to that.
The second thing is we have an appraisal cycle in January and typically this quarter is always going to be slightly lower compared to other quarters. The reason being is that this appraisal kick in and a lot of people got raises and our cost has increased, but our bill rate has not. Over the next few quarters, you’ll start seeing that this will start improving and you’ll start seeing better EBITDA numbers compared to what we have for this quarter or the last quarter that we talked about. Okay, now please go to the second question.
Prashant Pani
Yes. So yeah, you are telling like you are going to. We are going to reach 200 million revenue in next to one to two years. So. So you mean to say like by 20, 27, 28, like we will be achieving that number?
Niranjan Chintam
We should be able to reach that?
Karanjit Singh
Yes.
Prashant Pani
Okay. Yeah, that’s for my session.
Niranjan Chintam
Thank you, Prashant.
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 Pratik Dedia, an individual investor. Please go ahead.
Prateek Dedhia
Yeah, am I audible?
Niranjan Chintam
Yes, you are.
Prateek Dedhia
So you mentioned about the inflection point and the company is on the path of transformation, business growing revenue and profitability. Can you share lights on what kind of levers will be higher? More clients, higher billings, newer products or what?
Niranjan Chintam
It’s a combination of all of them. To answer your question, Hardeep, you know there are going to be higher billings when it comes to AI because not too many people, too many people have the ability or capability to provide. Right. Including all the other names that were plotted out there. Even though they’re saying they have the capability, they have this many number of people, but we have built so many agents now, agent AI is going to be the next big thing. We already have a platform on that and that we are working to launch some of these solutions around that.
And we’re seeing a lot of traction, which is what Kanji talked about earlier too, where we had launched initiatives which are industry specific and we are getting a lot of customer eyeballs and getting responses to our campaigns almost instantaneously saying, hey, we want to know more about this. Can you set up a meeting? So there’s a lot of traction and we deliberately Took some time to build up this capability and now we have launched it out and we are getting traction on that and we believe that is what is going to yield to our increased profitability.
And also efficiencies have come in place, which is what we talked about earlier too. So all that is going to lead to better margins and increase revenues.
Prateek Dedhia
And you mentioned about traction and then.
Niranjan Chintam
Your voice is a little bit coming, as in a. It’s not coming clear. Can you just repeat one, Just last question.
Prateek Dedhia
Yeah. Is it better now?
operator
Oh, still not better. Can you use your handset?
Prateek Dedhia
Is it better now? Yeah, yeah, yeah. So I wanted to check, will the initiatives be projected or will it be more contractual in nature where you keep building the clients and keep enhancing the offering that will increase the business?
Niranjan Chintam
I. I don’t know what you just asked the question, but when you answer it, some pieces like that, see, what it’s going to be is we are the combination, right? We are partnering our way through also when we’re providing the solutions. And I think one of the things we announced, Microsoft, there are a couple of others that we’re working, which we’ll announce very soon. So we’ll have three solid partnerships that are going to enable to get us a lot additional customers in that space that we are working. This is. I’m talking about a combination of AI is what it is.
And again, like I said, right. I did not understand your question. I’m sorry. If you have a better connection, please do ask the question back or reconnect yourself and ask me the question. We’d love to answer that.
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 1 now. If anyone has any questions, you may press star and 1 Now to ask the questions. We have a follow up question from the line of Prateek Derya and individual investor. Please go ahead.
Niranjan Chintam
Yeah, Pradeep, sorry, I guess your connection was not that great.
Prateek Dedhia
Yeah. Is it better?
Niranjan Chintam
Still not still bad connection.
operator
Pratik, can we please request you to reconnect and join again?
Prateek Dedhia
Yeah. Is it better?
operator
Still not better. Pratik, your voice is quite muffled.
Prateek Dedhia
Okay, I’ll join that. Sorry.
operator
In the meanwhile we have the next question from the line of Brijit Mishra, an individual investor. Please go ahead.
Niranjan Chintam
Hi, Virgin.
Brijesh Mishra
Yeah, how are you?
Niranjan Chintam
Good, good, yeah.
Brijesh Mishra
I want to know the money that you have raised through preferential documents and through this foreign commercial borrowing. So what is the purpose of raising the money?
Niranjan Chintam
Okay. So Bhujin, thank you for question in fccb. I think we already announced that and we took shareholder permission. I’d be happy to answer that. The reason why we raised this FCCB is a combination of two things. One, to increase our working capital limits because we are making a lot of investment in the AI space. The second one is to invest in our subsidiaries overseas. It’s going to be a combination of again, working capital there as well as we’re looking for some strategic acquisitions. Because AI is fast evolving. What we know today is going to be different from what we know probably a few weeks down the road.
So it’s evolving at such a rapid pace, it’s not easy to catch up. Right. So we want to look at somewhere where we can make some strategic acquisition that helps us with these kinds of continuous whiplash. I’ll give an example. Right. In 2024, probably second or third quarter, they said Agent AI is going to come in, it’s going to do a lot of wonderful stuff. But we are three years away. That was in 2024, second quarter and now starting today, Agentic AI is already here, it’s already ruling the world. Those are the kind of stuff, the investments that we can make in those kinds of quick evolving technologies is what we are looking at.
And for that we wanted to raise money because hey, as a company we can only invest to a certain extent. So we wanted to have a little bit of war chest where we can invest in additional capabilities and by, like I said, strategic acquisition that helps us get that capability in this fast evolving AI world.
Brijesh Mishra
Okay, fine. Thank you so much.
Niranjan Chintam
Thank you. Thank you.
operator
Thank you. As there are no further questions, I would like to hand the conference over to Mr. Niranjan Chinkan, sir, for closing remarks. Over to you, sir.
Niranjan Chintam
Thank you Manav. And thank you the shareholders for joining the earnings call and continue to impose faith in us and your trust in our growth strategy. We are looking to grow and we are looking to. I guess like I said earlier, we are at the inflection point and now we are beyond the inflection point. I think you should start seeing growth from a bottom line and the top line perspective. Thank you very much. I’m looking forward to talking to you in the next earnings call or agm, whichever comes earlier. Thank you. Bye bye.
operator
Thank you so much, sir. On behalf of Kelton Tech Solutions Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.