Subex Limited — PPTs, 02-05-2025: Investor Presentation

1. Financial Highlights:

Q4 revenue dipped 3% QoQ to ₹70.6 Cr, with full-year Telco revenue steady at ₹280.16 Cr. Non-Telco revenue declined sharply to ₹5.45 Cr from ₹29.73 Cr in the prior year. Normalized EBITDA improved to ₹5.26 Cr, up ₹1.29 Cr QoQ, driven by cost savings. Normalized PBT rose to ₹4.14 Cr and PAT turned positive at ₹0.66 Cr versus a loss last quarter. Cash reserves strengthened to ₹104.75 Cr, and receivables days improved to ~87. A ₹16.89 Cr impairment was recognized on disputed Non-Telco receivables.

2. Strategic Initiatives & Growth Drivers:

Focus remains on core Telco business with increased emphasis on AI-enabled Business Assurance and Fraud Management (BAFM) solutions, highlighted at MWC 2025. Cost optimization unlocked ₹22 Cr EBITDA in Telco vertical. Employee productivity improved 31% over two years. Renewals and new contract wins in Europe and the Middle East signal growing market confidence. Talent development continues through mentorship and upskilling efforts.

3. Business Developments:

Secured a Tier 1 contract in Europe and renewed two key managed services agreements across Europe and Middle East, signaling strong client trust. AI integration, including GenAI, is central to enhancing product suite, positioning Subex as an innovation leader in telecom analytics.

4. Market Position & Competitive Advantage:

Subex’s strong annuity revenue (~70%) and 95% customer retention, alongside a presence in 100+ countries with 150+ clients, provide scale and stickiness. Telecom data expertise combined with tailored AI solutions create significant switching costs, cementing its leadership in telecom analytics and fraud management globally.

5. Investor Implications:

Return to profitability, steady Telco revenue, and cost efficiencies suggest positive growth potential. Strong client wins and AI focus underpin sustainable competitive advantages. Execution risks remain around disputed receivables recovery and Non-Telco segment traction, which investors should watch for further upside.