Xtglobal Infotech Ltd (NSE: XTGLOBAL) Q4 2025 Earnings Call dated Jun. 05, 2025
Corporate Participants:
Unidentified Speaker
Raghuram Kusuluri — Chief Financial Officer
Mullapudi Atchuta Ramarao — Managing Director
Analysts:
Dhanush Mehta — Analyst
Abhijit Shah — Analyst
Madhu Sharma — Analyst
Presentation:
Unidentified Speaker
Q4 free 20242025 earnings call for Financial summary stay here for full earnings call recording skip to 3 o’ clock. XT Global Financial Results the company reported a revenue of 87.05 crore rupees compared to 50.42 cr in the same quarter last year with a change of 72.65%. Interest expense stood at 0.79 crore rupees compared to 0.73 crore in the same quarter last year with a change of plus 8.22%. Total expenses were 82.71 crore compared to 46.51 crore rupees in the same quarter last year with a change of plus 77.83%. Other income amounted to 0.24 crore rupees compared to 0.92 crore rupees in the same quarter last year with a change of -73.91%. Depreciation expenses were 1.93 crore rupees compared to 1.95 crore in the same quarter last year.
Were they change of -1.03%. Profit before tax was 1.38 crore compared to 2.15 crore rupees in the same quarter last year with a change of minus 35.81%. Tax rate for the quarter was 2.17% compared to 58.60% in the same quarter last year. The net profit stood at Rs. 1.35 crore rupees compared to 0.89 crore rupees in the same quarter last year with a change of 51.69%. Earnings per share were 4 paise compared to 7 paise in the same quarter last year with a change of -42.86%. Operating profit amounted to 4.34 crore compared to 3.91 crore in the same quarter last year. Year with a change of plus 11.00%. Operating profit margin was 4.99% compared to 7.75% in the same quarter last year. Sam.
Operator
Gentlemen, good day and welcome to the xt Global Infotech Limited Q4 and FY25 earnings conference call hosted by RicCapital. We have with us today from the XT Global Infotech Limited Management Mr. Ramarao Mullapudi, CEO, President and Director, Mr. Raghuram Kusuleri, Chief Financial Officer and Mr. Sridhar Pentella, Company Secretary and Compliance Officer. As a reminder, all participant lines will be in 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 touchtone phone. Please note that this conference is being recorded. Before we proceed with this call, I would like to take this opportunity to remind everyone about the discussion disclaimer related to this conference call. Today’s discussion may be forward looking in nature based on management’s current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward looking statements. I now hand the conference over to Mr. Raghuram Khusuleri for opening remarks. Thank you. And over to you sir.
Raghuram Kusuluri — Chief Financial Officer
Thank you so much. Good evening everyone. Myself Raghuram Khushaluja. I’m the Chief Financial Officer of xt Global Infotech Ltd. It’s my pleasure to welcome you to the Q4 and financial year 2424 earnings call of Extra Global Infotech Ltd. This marks our first maiden investor call and we are delighted to have the opportunity to engage with you. I trust you all have had the chance to review our earnings presentation and press release and which is available on both the stock exchanges MSC and psa.
Today’s Call we cover our performance highlights for the year, share our growth story that defines the path ahead, and provide a brief overview of xt Global Infotech Ltd. An emerging technology and outsourcing services provider focused on digital transformation and sustainable value creation. So XT Global Infotech Limited is a trusted IT services outsourcing and consulting company with over 30 years of experience delivering innovative technology solutions. We provide a wide range of services including IT Development Manager services, business process automation, tailored consulting for clients worldwide and accounting outsourcing services.
Our expertise in cloud migration, local development, robotic process automation and advanced analytics helps enterprises accelerate. Their digital transformation with a team of over 600 skilled professionals across India and the US. We hold certifications like CMMI level 3 and ISO 27001. We collaborate with leading technology partners such as Oracle, Microsoft, AWS and UiPath, and Automation Anywhere. Our proprietary product Circulus offers cloud based accounts payable automation showcasing our commitment to innovation. Looking ahead, we are optimistic about our growth trajectory. We remain focused on enhancing our digital capabilities, expanding into high potential verticals and investing in automation and AI lift services. Our emphasis on recurring revenue, client stickiness and operational excellence is expected to drive sustainable growth through financial year 26 and beyond. So I’d like to be Quote this Financial Performance for the financial year 25 for the full year ended March 31, 2025, revenue rose by 7.8% year on year to 23,004. 414 lakhs reflecting strong execution across our digital and outsourcing verticals. EBITDA stood at 2,245 lakhs, a decline of 6% year on year with EBITDA margins moderating to 9.6% down by 141 basis points due to strategic investments and certain one time cost. EBITDA came in at 1650 lakhs down 8.8% year on year translating to a margin of 7%. Profit after tax stood at 991 lakhs down 15.1% year on year with PAT margins softening to 4.2% from 5.4% last year. The decline in PAT was primarily driven by a non cash SOP expense of 373 lakhs, Rupees 376. 73 lakhs. Reflecting our continued focus on leadership retention through long term incentive plans, this year is the first year we have recognized this expenditure and our plan is to retain the leadership team so Senior people and Q4 financial year 2025 financial performance In Q4 financial year 25 we delivered a strong top line performance with revenue 8705 lakhs, registering a 77.5% quarter on quarter growth and 72.7% year on year growth supported by increases, client additions and recurring revenue. We. Added 15 new clients during the quarter, further strengthening our market presence and long term revenue visibility. EBITDA for the quarter stood at 434 lakhs, up 9.9% year on year, but down 45% sequentially with margins at 5% impacted by two exceptional items. These were a non cash allocation of 154 lakhs and certain one time expenses, recognition of certain one time expenses and enhanced provisions. Consequently, EBIT came in at 218 lakhs and PAT at 136 lakhs reflecting sequential decline but still showing 52.1% year on year increase in PAT. Excluding these one off items, the underlying business remains profitable and healthy with margins expected to normalize in the upcoming quarters. With this I would like to conclude my remarks. I now welcome any questions you may have. Thank you.
Operator
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 their Touchstone telephone. If you wish to remove 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.
Questions and Answers:
Operator
Take our first question from the line of Dhanush Mehta from JM Financials. Please go ahead.
Dhanush Mehta
Hello, thank you for the opportunity. My question is regarding acquisition strategy in Europe and Australia. Can you elaborate your acquisition strategy in Europe and Australia? Are you targeting market access, tech capabilities or both? Hello, Am I audible?
Operator
Yes, Dhanush, you are audible.
Mullapudi Atchuta Ramarao
Yes, this is Rama Mallapudi, the Managing director of XT Global and CEO. So I just. I would like to take this opportunity to answer the question first. Thank you all for joining this call. So for the acquisition strategies right we have that’s a multi fold our goal is right now we are mainly focused in the US market from the beginning from the inception in 1998 all the way until now. So we were actually looking at a couple of companies that we are strategic acquisitions similar to what we do is within those markets is what we are looking at. Existing companies in the similar line is what we are targeting. We are discussing with opportunities. Nothing has been like. End up at this point of time what we are doing discussion stages. While we are doing the acquisitions we are also trying to market within those segments through our for especially account finance and accounting areas. And IT side within that area markets too.
Dhanush Mehta
Understood sir. And sir, how do you plan to finance this acquisition in printer, accrual debt or equitations?
Mullapudi Atchuta Ramarao
So in the beginning we are trying to look at both cash as well as debt. Debt financing primarily and equity also. Little bit of dilution of equity plus cash.
Dhanush Mehta
So how much in terms of little bit of share shop? Yeah. Okay. And sir, what is the debt of the company right now?
Mullapudi Atchuta Ramarao
Raghuram, do you want to go ahead and tell what the current outstanding debt and what the timeline to get that paid off?
Raghuram Kusuluri
Yes. Yeah. We have around 11 crores term loans and we are using a lineup rate of around 3 crores.
Dhanush Mehta
Okay.
Raghuram Kusuluri
And out of that two term loans are about to be repaid in a span of three to four months from now. And the rest of all we have a two year time.
Dhanush Mehta
Okay sir.
Mullapudi Atchuta Ramarao
Mainly these term loans were taken for the asset creation and our infrastructure development within India within VISAG partner facility and our Hyderabad facility.
Dhanush Mehta
Okay sir. Thank you sir.
Operator
Thank you. Before we take the next question, would like to remind participants to ask a question. Please press on your phone. Next question is from the line of Abhijit Shah from White Tree Capital. Please go ahead.
Abhijit Shah
Hello. Yes Abhijit. Question is are you exploring any generative AI or AIML based capabilities to enhance existing offers like automation, AP automation or low code platforms?
Mullapudi Atchuta Ramarao
Yes. First I want a little bit brief you on our accounts payable automation. We as a company developed accounts payable automation platform that is more of a software as a service kind of model. We first initially implemented this new product from. Actually we are in this business accounts payable automation for our 15 years. We have major customers within this industry in US that are recurring in nature. And we are talking around over $4 million right now. Within this accounts payable automation bill payment platform are actually. Automation. So we are actually looking at doing automation certain areas of the processes to use AI related to. We can reduce our costs and prospector cost. But clients faces for the services used based on the number of documents or a number of invoices that are being processed through our system. Complete end to end processing. From the time the customer sends the invoices to us to delivery. The entire workflow is done through our system. We have major customers from like certain customers from like. We have customers that are paying 20, $30,000 to certain customers paying smaller customers paying around 2,000 to $4,000 per month. Right. They are recurring in nature. So in that area we are trying to implement AI to increase our efficiencies. And then on top of that from the IT services side also we actually partnered with the UiPath for automation. And then we are servicing certain customers bots. Creating bots for customers in the automation area as well. We have few customers within that area right now.
Abhijit Shah
Okay, thank you sir. And my next question is as foreign exchange fluctuation materially impacted revenue or margins in first year 2025?
Raghuram Kusuluri
No. Yes. Very little impact foreign exchange purchases on our revenue.
Abhijit Shah
Okay, thank you sir.
Operator
Thank you. Ladies and gentlemen, to ask a question please press star n1 on your phone. We’ll take our next question from the line of Madhu Sharma from SK Capital. Please go ahead.
Madhu Sharma
Good evening sir and thank you for the opportunity. So my first question is despite a strong top line growth pad dropped 51.1% yon F1 and beyond ESOP related expenses, what structural issue or cost elements are pressuring net margins for the first.
Raghuram Kusuluri
Yes, yes, yes, yes madam. The. For the first quarter, right? Obviously the. We have. We do salary increments beginning of the year which is happen to be fourth quarter this year. So that impacted little bit of side but most of it is driven if you look at the right cash on class actually returns are much higher. But because we have a lot of amortization and interest rate. Expenses due to our assets. That’s something that you would see in our financials. And ESAPS is a major component that was affected. And then we have a lot of investments related to UiPath and then these areas of our growth areas that we might not have seen the revenue coming in yet in those areas but we are investing in those areas for the future. Right. That’s where we see certain impact on the final returns.
Madhu Sharma
Yes sir. And my second question is.
Raghuram Kusuluri
And we did not capitalize any of that expenditure.
Madhu Sharma
Yeah. Okay. So yes sir. Answer next question is with the patent margin at just 4.2% for FY25. So what internal benchmarks or target are you see setting to improve profitability in FY26?
Mullapudi Atchuta Ramarao
Raghu, do you want to take that call?
Raghuram Kusuluri
Yes, we are focusing on restructuring and so we are also focusing to reduce the costs. So the client base is also increased this year. This quarter if you see we added 15 clients. So that will definitely add to our profits. And we are also expecting some additional income by way of letting out our property in Vishakh Patnam. So that will definitely add to our margins in the coming quarters.
Mullapudi Atchuta Ramarao
Yeah. So to add on to Raghuram’s information, right. First thing is all the 15 plus clients that we added this quarter, most of these clients are actually signed up multi year contracts with us. Three years is what we look for these clients. So recognize the revenue now. But most of the clients are reoccurring in nature. Revenues is more reoccurring in nature for us. Especially long term contracts. And the other thing is we have built over a period of time, we built excess infrastructure.
We have about almost close to 2 lakh square feet of office space owned by us within Visag Patnam and then about 25,000 of office space in Hyderabad which we are occupying right now. The excess square footage that we have in our Visakh but now we are trying to let it out and then we see that we are actually negotiating with certain companies that are interested to take up the space that will add up the bottom line quite a bit which we see about, I would just guess estimate to be around 5, 6 crores of bottom line addition if that materializes.
Madhu Sharma
Yes. Thank you sir.
Operator
Thank you. Ladies and gentlemen, to ask a question, please press. Press star and one on your phone. Participants who wish to ask a question may please press star and one on their phone. Now as there are no further questions I now hand the conference over to Mr. Rama Rao Mullapudi for closing comments over to you sir.
Mullapudi Atchuta Ramarao
Oh thank you all very much for joining this call. We appreciate it very much. Please do call us with any questions to our investor relations for if you have any further clarification that are needed. Thank you once again Raghuram you want to just have few more comments just please
Raghuram Kusuluri
Yeah thank you thank you all for joining us and do feel free to reach out to our investor relations team for any queries or to our landline number also so for any queries you can reach feel free to reach out to us anytime.
Operator
Thank you sir. On behalf of XT Global Infotech limited this concludes today’s conference. Thank you for joining us and you may now disconnect your lines.
Mullapudi Atchuta Ramarao
Thank you very much.
Raghuram Kusuluri
Thank you. Value.