Fractal Analytics net profit grows 92% to ₹72.3 crore in Q1
AI Summary
Fractal Analytics reported a 92% year-on-year growth in net profit to ₹72.3 crore for the June quarter, driven by strong performance in healthcare, BFSI, and retail sectors. However, there was a sequential decline of 37% in profit due to rising employee expenses and depreciation. Operating revenue rose by 20% year-on-year, indicating robust demand, particularly in AI-driven projects, despite a 22% decline in the TMT sector.
Fractal Analytics reported 92 per cent growth in net profit at ₹72.3 crore for the June-ended quarter led by good momentum in healthcare, BFSI, and retail segments.
Sequentially, profit declined 37 per cent due to employee expenses, depreciation and amortisation.
Operating revenue grew to ₹912.5 crore, a growth of 20 per cent year-on-year and 3 per cent quarter-on-quarter. Gross margin in Q1 was at 46 per cent, while adjusted EBITDA margin expanded by 189 bps y-o-y to 17 per cent.
“Enterprises are putting real transformation budgets behind AI now and we're seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35 per cent year on year, which is a better read on the underlying demand we're seeing.
As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner," said Srikanth Velamakanni, Group CEO and Executive Vice-Chairman.
The healthcare and life sciences business clocked 69 per cent growth y-o-y. The sustained growth in the business over the last several quarters has made it the second largest industry in Fractal's portfolio. Banking, Financial Services and Insurance (BFSI) grew 36 per cent y-o-y while the company's largest industry, Consumer Packaged Goods and Retail (CPGR) grew 19 per cent. TMT as mentioned by Velamakanni declined 22 per cent.
Fractal’s focus on deepening customer relationships continues to yield good outcomes. Its clients collectively increased their spending with the company, said Fractal.
Original Article
Published on Hindu BusinessLine