eMudhra Ltd

- eMudhra Limited partially closed its Qualified Institutional Placement (QIP) recently. - The funds raised through QIP are intended for multiple purposes: - To fund working capital requirements, especially in the fast-growing US market. - To finance strategic acquisitions. - To invest in new product development, including post-quantum cryptography, fully homomorphic encryption, and mobile PKI. - Some portion is reserved for general corporate purposes, providing flexibility for any other needs. - There is no specific mention of any upcoming or additional fundraising via debt or equity beyond the recently closed QIP.

- eMudhra Limited plans capital investments primarily in product development, including three key products: post-quantum cryptography, fully homomorphic encryption, and mobile PKI. - Investments are being made in R&D for these cybersecurity-focused products, with specifications drafted and development outsourcing underway. - There is an ongoing strategic allocation of funds from the QIP proceeds towards: - Working capital, especially for the growing US market. - Strategic acquisitions to support growth and expansion. - Development of the new cybersecurity products mentioned above. - Implementation timeline for these new products is targeted before March 2025. - The company is cautious but optimistic about growth contributions from these products.

- FY23-24 revenue guidance around Rs. 360 crores with over 40% growth expected for the year. - For FY24-25, management anticipates around 25-30% revenue growth, incorporating new cybersecurity products. - International business expected to grow faster than domestic, with a focus on markets like the US, Middle East, Africa, and APAC. - Mobile PKI and post-quantum cryptography product rollouts planned before March 2025, contributing to future growth. - Enterprise business growing rapidly with about 35-40% order book growth and good sustainability in international revenues. - India trust service business growth expected around 15% annually. - Growth targeted while maintaining EBITDA margins around 30% and PAT margins near 20% in the near term. - Focus on expanding wallet share within existing large customers and acquiring higher-value clients.

- Company targets overall revenue growth of around 30% for FY24-25, lower than the prior year’s 40%+ (Page 9, 14). - EBITDA margins expected to be maintained at about 30% for the next one year, with PAT margins around 20% (Page 12). - ESOP charges will continue, but are mostly non-cash and do not dilute equity (Page 9). - International business growth is prioritized, expected to surpass domestic business, with better realizations and profitability (Page 13). - Enterprise business expected to grow 15-20% in India; trust service in India around 15% growth/year (Page 13). - New product launches (post quantum cryptography, mobile PKI, fully homomorphic encryption) expected to contribute to growth, targeted for implementation before March 2025 (Page 16). - Cautious optimism on incremental growth from new products; 30% growth guidance includes these products but no incremental growth currently assumed (Page 16).

- The company typically provides order book details only at the fiscal year-end. - As of December (Q3 FY24), the order book showed strong growth, approximately 35% to 40% higher compared to the previous March. - The management highlighted good order book growth in this period. - This indicates robust demand and momentum in securing future contracts, especially driven by international expansion and enterprise business segments.