Arthneeti
Expleo Solutions LtdQ3 FY22

Expleo Solutions Ltd Q3 FY22 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹890P/E: 9.4Market Cap: ₹1.4K CrSector: IT - Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2
  • The company expects to maintain strong sequential revenue growth of about 7% to 8% in the near term, continuing trends seen in the last three quarters.
  • For FY22, growth in revenues is projected above Rs 300 crores for unlisted entities, showing around 27%-28% growth over Rs 260 crores in FY21.
  • The merged entity aims to increase direct sales, especially in banking and financial services, while gradually expanding into healthcare, lifesciences, energy, utilities, and EdTech sectors.
  • The number of clients contributing above $1 million has grown from 9 to 11, with expectations to add 2-3 more clients above that threshold during the year.
  • The company plans to grow its employee base from around 4,000 to 5,000 in 2022 to support demand, with a medium-term target of 10,000 employees by 2025.
  • Growth is driven by specialized testing, automation, DevOps, agile quality assurance, and software development services across global regions.
  • Engineering services growth expected to sustain 25%-30% revenue share in next 3-5 years.

See what Expleo Solutions Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • The transcript on page 15 and surrounding pages does not mention any current or future plans for fundraising through debt or equity.
  • The discussion primarily focuses on the merger timeline, employee hiring and training, revenue growth, margin impact, and business outlook.
  • No explicit statements were made regarding raising funds via debt or equity instruments during the call held on February 04, 2022.
  • The focus appears to be on organic growth, merger completion, and operational scaling rather than external financing.

See what Expleo Solutions Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
The transcript from the document does not explicitly mention current or future capex/capital investment or strategic investment plans. However, relevant points related to investments in the business include: - Investment in the "Hire-Train-Deploy" (HTD) model to improve margins over the long term. - Higher recruitment and training costs incurred during the period, indicating investments in building future workforce capabilities. - Investment in campus hiring and training programs to ensure skills and resources for future opportunities. - Spending on software purchases is described as pass-through costs and not a core margin or investment. - No specific capital expenditure or strategic investment details (such as infrastructure, technology upgrades, or acquisitions) are disclosed in the calls. Overall, the focus appears to be on workforce skill enhancement and business integration rather than large capital or strategic investments.

Track Expleo Solutions Ltd — get its next earnings analysis in your feed

Margin guidance

Category 3
  • The company expects to maintain an 18% EBITDA margin in the long term, driven by their Hire-Train-Deploy (HTD) model, which converts trainees into billable employees, adding topline growth (Page 14).
  • Revenue growth is anticipated to continue with double-digit sequential growth (around 7-10%) expected over the next 2-3 quarters (Pages 5,10).
  • They expect the combined entity to cross $100 million in revenue this financial year and target Rs 720-740 crores for FY22 (Pages 12,13).
  • The unlisted entity is expected to grow from Rs 260 crores to over Rs 300 crores in revenue (Page 11).
  • The EBITDA margin may reduce slightly (around 1 to 1.5%) post-merger due to inclusion of lower-margin engineering business but still target close to 17-18% (Page 8).
  • Profitability and margins were temporarily impacted by investments in hiring, training, software pass-through revenues, and merger costs but are expected to improve as these normalize (Pages 3,4,8,13).
  • Long-term EPS growth is expected to follow these margin and revenue expansion trends as scale benefits and higher-value services improve profitability (implied across discussion).

Order book

  • The document does not explicitly mention a specific current or expected order book value in exact numbers.
  • Balaji Viswanathan noted a robust demand with strong client wins, adding 10 new clients recently.
  • Sequential revenue growth of around 9% in Q3 FY22, indicating increasing order flow.
  • A healthy pipeline and reasonable renewal rates support ongoing growth.
  • Business focus includes expanding digital capabilities and engineering services.
  • The merger is expected to bring scale benefits and synergies that would likely increase future order inflow.
  • No definitive quantitative figures for pending orders or exact order book size are provided.

How does Expleo Solutions Ltd rank vs peers in IT - Services?

Pro feature
ThisExpleo Solutions Ltd
Rev 2Mar 3
See where Expleo Solutions Ltd sits in IT - ServicesSee which companies these are, and every other name in the sector.Open rankings

How does Expleo Solutions Ltd rank in IT - Services?

Compare Expleo Solutions Ltd against every IT - Services company (Q3 FY22) on revenue, margins and earnings-call signals.

View IT - Services leaderboard →

Continue your research

What Expleo Solutions Ltd's management said in earlier quarters

Others in IT - Services this season

  • Xtranet Techno. (Q1 FY27)

    500+ crores, up from Rs. Key concall takeaways from Xtranet Technologies Ltd's Q1 FY27 earnings call — and how it ranks against sector peers.

  • Netweb Technol. (Q1 FY27)

    The company has a healthy order book of approximately INR 3,400 crores, supporting strong growth for the financial year. Key concall takeaways from Netweb…

  • Exato Technologies (Q1 FY27)

    Order book growth continues, with unexecuted orders around 410 crore ensuring strong revenue visibility. Key concall takeaways from Exato Technologies Ltd's Q1…

  • Amagi Media Labs (Q1 FY27)

    They have a strong cash position of INR1,616 crores, including IPO proceeds. Key concall takeaways from Amagi Media Labs Ltd's Q1 FY27 earnings call — and how…

Compare:vs L&T Technologyvs Tata Technolog.vs Netweb Technol.

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →