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Softtech Engineers Limited — Results, 26-05-2025: Integrated Filing- Financial
SoftTech Engineers Limited has announced a board meeting on the declaration of the financial results for the quarter and half-year ended March 31, 2025.
1) **Revenue Performance:**
Consolidated revenue rose 21% YoY to Rs. 95.25 Cr from Rs. 78.78 Cr last year. Growth is driven by meaningful contributions from subsidiaries and new geographic expansion in Germany.
2) **Profitability and EPS:**
Net profit declined to Rs. 3.32 Cr from Rs. 6.33 Cr due to additional provisions for expected credit losses (ECL) on delayed recoveries. Adjusted for this one-time provision, EBITDA margin stays near historical ~31%. Basic EPS was Rs. 3.17 versus Rs. 6.17 previously.
3) **Operational Costs:**
Expenses increased to Rs. 94.22 Cr, mainly from higher employee costs and raw material expenses aligned with business scaling. Provisions for credit risk also compressed margins. Finance costs held steady at Rs. 4.9 Cr.
4) **Key Metrics:**
EBITDA margin slipped to 27% from 31%, largely owing to ECL provisioning. Currency translation added about Rs. 1 Cr to other comprehensive income.
5) **Balance Sheet / Cash Flow Health:**
Total assets grew to Rs. 247.89 Cr from Rs. 195.03 Cr. Borrowings rose moderately to Rs. 16.78 Cr. Operating cash flow was strong at Rs. 27.96 Cr, supporting expansion amid Rs. 63.98 Cr in capex and investments. Cash balances improved to Rs. 2.57 Cr.
6) **Management Commentary:**
Management is optimistic on top-line growth fueled by subsidiaries and German market entry. Focus remains on innovating within Architecture, Engineering & Construction vertical and leveraging new geographies. Credit provisioning is viewed as a prudent, temporary margin headwind.
**Final Takeaway:**
SoftTech’s solid revenue growth and strategic investments underpin stable medium-term prospects. Margin pressure from credit loss provisions is likely short-term, supporting a resilient balance sheet. Retail investors can watch for sustained expansion and improving profitability ahead.