Blue Pebble

Q1 FY25 Earnings Call Analysis

Other Consumer Services

Full Stock Analysis
fundraise: No informationcapex: Yesrevenue: Category 2margin: Category 3orderbook: Yes
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fundraise

Any current/future new fundraising through debt or equity?

- There is no specific mention on page 10 or the provided sections about any current or future fundraising plans through debt or equity. - Nalin Gagrani discusses the company's capital structure and mentions a capital raise in the past (net worth is larger because of capital raised), but no new fundraising plans are indicated. - Focus appears to be on scaling operations, expanding verticals, and increasing revenues through existing projects and new business lines rather than raising new funds. - Working capital and payment cycles seem manageable without needing additional equity or debt at this time. - Overall, the company appears focused on internal growth and partnerships rather than external fundraising in the near term.
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capex

Any current/future capex/capital investment/strategic investment?

- Blue Pebble has established a state-of-the-art 7,500 sq ft factory post-IPO with advanced machinery: - EFI UV machine (one of about 8-10 in India) for precision and speed. - UV Braille machine (first of its kind in India). - CNC machines, laser machines, HP latex green printing machines, and painting booth. - This factory setup enables faster project delivery and in-house production capabilities. - The company is building a digital immersive platform with about 25 software engineers working on it: - The platform includes key modules for architects and facilities heads. - Tested with 20 architects and expected launch in July. - There is a strategic partnership with an outsourced tech team for product upgrades to ensure stability and continuous improvement. - They are considering using manufacturing capacity for captive consumption primarily but open to external use if required.
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revenue

Future growth expectations in sales/revenue/volumes?

- Blue Pebble has experienced over 100% growth in revenue last year, increasing from ₹22.4 crores to ₹45.6 crores. - The company has a robust order book with ₹10 crores in orders just for April 2025, indicating a strong pipeline. - They expect continued aggressive growth, particularly in the environmental branding segment, which yields healthy margins. - New verticals such as design & build and digital immersive are expected to further scale revenues, despite currently lower margins due to learning curves. - Strategic investments in a proprietary software platform and manufacturing facility aim to enhance scalability and operational efficiency. - Expansion into larger projects and diversification across more clients is reducing dependency on top clients and spreading revenue sources. - Management is confident that the next 4-5 years will see tremendous growth driven by increased on-ground investments and industry demand. - Revenue growth is expected to be substantial, though precise future numbers and margin guidance were not disclosed.
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margin

Future growth expectations in earnings/operating earnings/profits/EPS?

- Blue Pebble has shown strong revenue growth recently, nearly doubling from ₹22.4 crore to ₹45.6 crore with a CAGR of ~82%. - EBITDA and PAT grew by 27% and 34-35% respectively last year, but margins faced pressure due to diversification and learning curves in new verticals. - Long-term sustainable EBITDA margins are expected around 15-17%. - The company is aggressively growing its environmental branding segment and building capabilities in design & build and immersive digital verticals. - New investments including a proprietary platform and manufacturing facility are expected to contribute to higher scalability and revenue channels. - Order book is healthy with ₹10 crore in April alone and a strong pipeline. - Management confident about capturing new business, stabilizing margins, and achieving healthy profit growth going forward. - Margins and earnings expected to improve as new verticals mature and operational efficiencies increase.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

- As of April, Blue Pebble Limited has an order book of approximately ₹10 crores. - For the month of April alone, the company secured orders worth ₹10.5 crores from clients including Citi, Visa, and Air India. - There is a strong pipeline with multiple large discussions underway, expected to bring in significant revenue in the next 2-3 months. - The company has diversified its client base, reducing dependence on top clients which previously contributed about 50%, now down to around 25-30%. - A healthy visibility of revenue buildup is anticipated through new verticals like design and build and immersive digital services. - The company is confident of closing more large deals, which will contribute to a growing order book going forward.