Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript. The company is focused on improving top-line growth and optimizing costs but has not indicated plans for raising funds via equity or debt. Discussions mainly revolve around business transformation, sales improvements, and operational efficiencies. When probed about financial aspects, the management emphasizes cost control and growth strategies without mentioning capital raising. If any fundraise plans arise, the management intends to inform investors accordingly in due course.

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

Subex is investigating adjacencies beyond telecom, including some work in Fintech such as Telco wallets, indicating potential future strategic investments in these areas. The company is committed to enhancing its product range and offerings through active partnerships to optimize spending and accelerate market entry. Significant investments are being made to upgrade the technology stack, especially in AI and GenAI solutions tailored for telecom, demonstrated by a production-ready GenAI solution launched with Google. There is no explicit mention of current or planned large-scale capital expendi

Future growth expectations in sales/revenue/volumes?

The company is seeing growth across all three product fronts: Sectrio, IDcentral (including BharatID app), and HyperSense, indicating a broad portfolio expansion rather than growth concentrated in one area. Efforts are focused on doubling down on the Telco segment while exploring adjacencies like Fintech, wallets, and other areas for future growth. Historically, the company experiences better business in the second half of the financial year (Q3 and Q4), suggesting improved revenue and margins in these quarters. The company is investing actively in AI and upgrading its technology stack t

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

Management expects real profits to materialize within one year from the last con call, indicating optimism for profitability in the near term (Page 21). Focus is on improving topline growth as a critical factor for company growth; cost optimization is ongoing but insufficient without revenue growth (Pages 8, 9). Q3 and Q4 historically perform better than H1, suggesting possible seasonal uptick in revenues and margins (Page 12). New client wins in network asset management and security segments indicate green shoots for growth, though these currently contribute a smaller portion of revenue (Page

Current/ Expected Orderbook/ Pending Orders?

Subex has stopped reporting traditional order backlog figures as they found the multi-year backlog numbers confusing for investors. Instead, they now report a Monthly Recurring Revenue (MRR) figure. As per the latest call, apart from the MRR, there is one-time revenue yet to be executed amounting to approximately $13 million to $14 million. This one-time revenue represents pending orders for execution over about a 12-month horizon. The MRR is indicative of recurring revenue expected from ongoing contracts after project implementation phases complete.

IN US

Sale is live|00:00:00left today

Subex LtdQ3 FY23IT - Software

Subex Ltd Q3 FY23 Earnings Call Analysis

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

Price: ₹10.5P/E: 18.4Market Cap: ₹590 CrSector: IT - Software

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→The company is seeing growth across all three product fronts: Sectrio, IDcentral (including BharatID app), and HyperSense, indicating a broad portfolio expansion rather than growth concentrated in one area.
→Efforts are focused on doubling down on the Telco segment while exploring adjacencies like Fintech, wallets, and other areas for future growth.
→Historically, the company experiences better business in the second half of the financial year (Q3 and Q4), suggesting improved revenue and margins in these quarters.
→The company is investing actively in AI and upgrading its technology stack to address competition and evolving tech challenges, which should support top-line growth.
→New client wins in network asset management and security indicate emerging green shoots and potential new revenue streams.
→The company is working on increasing efficiency and optimizing sales by targeting regions and customers more strategically, which is expected to bolster sales.
→Recurring revenue growth is tied to completion of long-duration projects and should improve progressively.

Margin guidance

Category 3

→Management expects real profits to materialize within one year from the last con call, indicating optimism for profitability in the near term (Page 21).
→Focus is on improving topline growth as a critical factor for company growth; cost optimization is ongoing but insufficient without revenue growth (Pages 8, 9).
→Q3 and Q4 historically perform better than H1, suggesting possible seasonal uptick in revenues and margins (Page 12).
→New client wins in network asset management and security segments indicate green shoots for growth, though these currently contribute a smaller portion of revenue (Page 10).
→Recurring revenue is expected to improve gradually as long-duration projects complete and subscriptions start (Page 13).
→Management is committed to delivering growth with positive momentum seen in recent quarters, aiming for better future results (Pages 4, 15).
→Continued investment in technology upgrades, partnerships, and adjacencies may further support top-line growth and margin improvements (Pages 16, 17).

3 more insights locked — sign up free to unlock

Fundraise plans

→There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript.
→The company is focused on improving top-line growth and optimizing costs but has not indicated plans for raising funds via equity or debt.
→Discussions mainly revolve around business transformation, sales improvements, and operational efficiencies.
→When probed about financial aspects, the management emphasizes cost control and growth strategies without mentioning capital raising.
→If any fundraise plans arise, the management intends to inform investors accordingly in due course.

Order book

→Subex has stopped reporting traditional order backlog figures as they found the multi-year backlog numbers confusing for investors.
→Instead, they now report a Monthly Recurring Revenue (MRR) figure.
→As per the latest call, apart from the MRR, there is one-time revenue yet to be executed amounting to approximately $13 million to $14 million.
→This one-time revenue represents pending orders for execution over about a 12-month horizon.
→The MRR is indicative of recurring revenue expected from ongoing contracts after project implementation phases complete.

Capex plans

→Subex is investigating adjacencies beyond telecom, including some work in Fintech such as Telco wallets, indicating potential future strategic investments in these areas.
→The company is committed to enhancing its product range and offerings through active partnerships to optimize spending and accelerate market entry.
→Significant investments are being made to upgrade the technology stack, especially in AI and GenAI solutions tailored for telecom, demonstrated by a production-ready GenAI solution launched with Google.
→There is no explicit mention of current or planned large-scale capital expenditure; instead, strategic investments appear focused on partnerships, R&D, and technology upgrades to drive growth and efficiency.

How does Subex Ltd rank vs peers in IT - Software?

Pro feature

1Subex Ltd

Rev 4Mar 3

See full IT - Software sector rankings

Want more stocks like Subex Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio