DRC Systems India Limited announces Financial Results for the Second Quarter and for the second quarter (Q2) and first half of FY 2024-25.
Key Highlights (Consolidated)
Six Months Ended September 30, 2024,
- Revenue from Operations up 85% Y-o-Y to INR 3149.7 Lakhs.
- EBITDA up 126% Y-o-Y at INR 981.0 Lakhs.
- Net Profit up 174% Y-o-Y at INR 711.9 Lakhs
Quarter Ended September 30, 2024
- Revenue from Operations up 63% Y-o-Y to INR 1614.1 Lakhs.
- EBITDA up 82% Y-o-Y at INR 454.2 Lakhs.
- Net Profit up 121% Y-o-Y at INR 327.0 Lakhs.
Gandhinagar, India, November 14, 2024: Information Technology and Software Consultancy Services provider, DRC Systems India Limited (BSE: 543268) (NSE: DRCSYSTEMS), “DRC Systems” “The Company” today announced its financial results for the second quarter (Q2) and six months ended September 30, 2024, as approved by its Board of Directors.
The company has achieved commendable growth in its net profit, which increased by 174% year-on-year, amounting to INR 711.9 Lakhs for the first half of FY 2024-25. Additionally, DRC Systems reported a progressive revenue growth of 85%, totaling INR 3149.7 Lakhs. This growth trajectory is bolstered by new projects secured from both domestic and international markets as well as incremental revenue from existing clients.
DRC Systems continues to invest in its brand awareness and visibility strategies by actively participating in national and international trade shows. This initiative has proven effective, resulting in a significant surge in business inquiries, contracts, and projects. Recently, the company showcased its offerings at:
- Open edX Conference in Cape Town, South Africa
- GITEX Dubai 2024, a leading tech event in the Middle East.
Mr. Hiten Barchha, Managing Director of DRC Systems India Limited, said, “The surge in national and international visibility due to our participation in trade shows has significantly contributed to boosting our revenue this year. We have started receiving quality business inquiries and anticipate this trend will continue to grow in the coming quarters as we enhance our awareness and visibility campaigns.”
The company is on the verge of securing several contracts for Human Resource Augmentation in the European region, with expectations of additional contract closures. Collectively, the anticipated contract size may reach several million dollars annually, and the company expects to see a positive business impact from its existing contracts in the upcoming quarter.
Following its participation in GITEX Dubai 2024, DRC Systems has received numerous inquiries for potential collaborations in the Middle Eastern markets. The company is currently evaluating partnership opportunities for its eLearning products with a USA-based company targeting the African market, as well as another technology partnership for Geographical Location and Navigation services for the Middle Eastern market.
Consolidated Financial Highlights (INR Lakhs)
| Particulars | Quarter Ended | ||
|---|---|---|---|
| September 30, 2024 | September 30, 2023 | Y-o-Y % | |
| Revenue from Operations | 1614.1 | 989.2 | 63% |
| Profit before Tax | 378.2 | 184.8 | 105% |
| EBIDTA | 454.2 | 248.9 | 82% |
| EBITDA Margin | 28% | 25% | |
| Profit after Tax | 327.0 | 148.1 | 121% |
| Net Margin | 20% | 15% | |
| Quarter Ended | ||
|---|---|---|
| September 30, 2024 | September 30, 2023 | Y-o-Y % |
| 3149.7 | 1699.8 | 85% |
| 810.2 | 326.8 | 148% |
| 981.0 | 434.6 | 126% |
| 31% | 26% | |
| 711.9 | 259.7 | 174% |
| 23% | 15% | |
- Revenue from operations for the six-month period ended was INR 3149.7 Lakhs 85% Y-o-Y increase. Quarterly revenue was up 63 % Y-o-Y to INR 1614.1 Lakhs driven by strengthening customer relationships, improved sales from IT solutions tailored to client needs and increased market presence with sales and marketing campaigns throughout the year.
- EBITDA margins for the six-month period ended improved from 26% to 31% Y-o-Y while EBITDA for the six-month period grew from INR 434.6 Lakhs to INR 981.0 Lakhs indicating 126% increase over the period. EBITDA for the quarter grew by 82% from INR 248.9 Lakhs to INR 454.2 Lakhs.
- Company’s Net Profit grew by 174% in the first half of the fiscal year from INR 259.7 Lakhs to INR 711.9 Lakhs, while on a quarterly basis the Profit after tax grew by 121% from INR 148.1 Lakhs to INR 327.0 Lakhs. The substantial increase is attributed to improved operational efficiencies, enhanced product offerings, and strategic cost management initiatives.
About DRC Systems India Limited
DRC Systems is an IT services and consulting company based in India, dedicated to providing sustainable and impactful business solutions. Since our inception in 2012, we have focused on innovation and creativity to drive change. Our services and solutions empower businesses to scale and stay competitive in the market. Our services and solutions help businesses scale the market. Over the years, we have diversified our service offerings through a mix of organic growth and strategic transactions. Our wide range of services allows us to build strong client relationships and create opportunities for cross-selling.Our customer base spans multiple geographies, primarily in Europe, the USA, the Middle East, and Asia.
